New Law for UK Supermarkets: Clearer Price Labels

A new law is in effect for all major UK supermarkets like Aldi, Tesco, and Sainsbury's. They must follow new rules for labeling prices on shelves. This law helps customers compare prices and find the cheapest option.

Sometimes, the lowest price is not the best deal because items can have different sizes or weights. Manufacturers often reduce item sizes while keeping the price the same, which is called 'shrinkflation'.

Last year, Asda sold items without following the rules and had to update its labels and apologize.

The Price Marking Order 2004 has been updated to change the rules for unit pricing.

Now, all price labels must use the same measurements, like kilograms or liters, to make comparisons easier. For example, retailers can't price one product in kilograms and another in grams.

Loyalty schemes, like the Tesco Clubcard, are also governed by the new rules. Retailers can't give too much attention to loyalty prices on shelf labels.

If a product has multiple prices, like a standard price and a loyalty price, retailers must display both prices together. They must also show the unit price for each and state the eligibility conditions clearly.

The law now applies to more products.

This includes packaged goods like cereals, pasta, and cosmetics. The goal is to support fair comparisons for a wider range of everyday items.

However, smaller shops with less than 280 square meters of floor space don't have to follow these rules.

The law allows retailers to offer discounts, like '20% off all paint', without changing every label.

The Price Marking Order 2004 aims to ensure consumers can make informed purchasing decisions by requiring clear and transparent price information. This is especially important for products sold in different sizes or with promotions.

The recent reforms aim to strengthen transparency in pricing. The changes expand unit pricing to more products, clarify how to display prices, and introduce updated definitions.

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