Woolworths, Coles and Aldi accused of ‘confusing’ promotional labels
Woolworths, Coles and Aldi have been accused of using “misleading” promotional labels that most Aussies don’t understand.
Australia’s major supermarkets have been accused of potentially misleading consumers with promotional deals that offer little or no discount.
Research by consumer advocacy group Choice suggests one-in-four shoppers find it difficult to identify when a supermarket label represents a genuine discount on the usual price.
More than 1000 consumers across the country took part in the research, which surveyed price tags regularly used by Woolworths, Coles and Aldi that featured phrases such as “down down”, “member price” and “prices dropped”.
But it was Coles’ “while stocks last” tag that caused the most confusion, according to the report, which has been submitted to the Australian Competition and Consumer Commission (ACCC) Supermarkets Inquiry
Coles told news.com.au its “while stocks last” tickets offer customers the chance to buy items which are only available at Coles for a short time, and which are unlikely to be restocked once the products are sold through.
But according to Choice, one-third of shoppers surveyed believed products tagged with the bright yellow tag were discounted, while another third were unsure.
Woolworths’ “member price” was also found to cause “considerable confusion”, according to the consumer watchdog.
Almost a third of Aussies (29 per cent) incorrectly believed the product was discounted, while 39 per cent said the product wasn’t discounted, and another 32 per cent were not sure.
The supermarket’s bright pink “new” tags were also seen to cause confusion, with 7 per cent of respondents incorrectly believing the product was discounted, as another 21 per cent said they weren’t sure. There were a large number of shoppers (72 per cent) who were correctly able to identify the product wasn’t discounted.
Meanwhile Aldi’s “super savers” label were also found to leave many Aussies confused, with a third of those surveyed unsure if it was a discount, according to the research.
“Consumers look for products that are the best value for money but it is becoming increasingly difficult for people to decipher the promotional tags being used by the supermarkets,” Choice said.
“Consumers are drawn to promotional tags that make it look like one product is potentially better value or a good deal, compared to other products.
However, the labels are “confusing and potentially misleading” and without contextual information or historical pricing data, “consumers have no way of knowing if they are getting a good deal or not”.
Woolworths told news.com.au it “works hard” to display prices “clearly and accurately” in its catalogue, stores and online, adding the retailer has tried to “comply with all Australian consumer laws”.
“We know many Australian families are doing it tough and looking for relief at the checkout,” the supermarket said in a statement.
“We strive to clearly and simply sign post the ways that our customers can find value and spend less every time they shop with us.
“We know that the majority of our customers are buying products on special or on an everyday low price offer to help them save.”
Aldi also responded to the findings of the Choice report, stating its “business model has oriented around saving customers money” and stressing the supermarket was committed to remaining “Australia’s most affordable supermarket”.
“Our model means we have permanently low prices across our range, creating savings for customers across a whole basket, not just on a select range of products,” the statement read.
“We do not offer price mark ups and discounts across our grocery range, otherwise known as high low pricing, providing certainty and reliability to our customers.
“Last year, we reaffirmed our commitment to customers that we won’t be beaten on the cost of the weekly shop and this commitment is now more important than ever.”
Coles added its specials and promotional tickets were designed for “customers on the lookout for great value”.
“We have several specials mechanisms which customers can look for in store and online to help them spot great value, from thousands of weekly specials offering short-term discounts on everyday items, to Down Down promotional campaigns which provide customers certainty prices will remain at a lower price for up to 13 weeks,” the supermarket said.
“Customer feedback is important to us. Our goal is to always be as clear as possible and we are taking steps to update this ticket over the coming months.”
Choice has called for “transparent pricing” from supermarkets in the report “to ensure that people are able to effectively compare products, recognise genuine discounts and make informed decisions”.
“Price tags offering specials and discounts should be consistent with consumer expectations and follow a mandatory information standard that outlines what qualifies as a discount and how it should be communicated,” Choice added.
The report was submitted to the ACCC inquiry which is examining the pricing practices of Australian supermarkets and the relationship between wholesale, including farmgate, and retail prices.
Choice is calling for strong enforcement action from the ACCC to “send a clear message to the supermarkets that misleading pricing is unacceptable”.
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