As the Australian Government launches its supermarkets inquiries on the heels of the Australian Council of Trade Unions’ Inquiry into Price Gouging and Unfair Pricing Practices, chaired by ex-ACCC chair Alan Fels, the United Kingdom has announced several changes for supermarket pricing.
Following public consultation on ways to improve price transparency and information about products for consumers, the UK government has announced that it will make several changes.
The consultation was on:
- display of pricing information (mainly unit prices)
- drip pricing/hidden fees
- fake reviews
- online platforms
- adding to the list of banned practices
- private rights of redress: prohibited practices
- online interface orders
The Government has decided to:
- Amend the unit pricing legislation and associated guidance on the use of consistent measures for unit pricing of products, provision of clear legibility criteria for display of unit prices, and definition of the types of promotional or loyalty scheme offers that should be included in legislation.
- Clarify the law on drip pricing by introducing new requirements that require unavoidable (“mandatory”) fees to be included in the headline price or indicated at the start of the purchasing process.
- Prohibit commercial practices related to fake reviews by adding these to the list of commercial practices that are considered unfair in all circumstances, making these subject to civil liability.
- Undertake further stakeholder engagement on what obligations platforms should be subject to with respect to consumer law, and how that should be publicly set out.
- Extend the power to make applications to the court for online interface and interim online orders to all public designated enforcers.
- Continue to explore the case for extending private redress rights to further unfair commercial practices.
More information about the UK Government’s responses to the consultation is available here.