Boots and Superdrug are among the worst shops for using 'rip-off' loyalty pricing practices, as they bump prices higher days before offering 'discounts', a new report has warned.
Cosmetics stores and grocery chains, including Sainsbury's and Tesco , has reportedly faced accusations from the consumer organization Which? alleging that they use their loyalty card programs to inflate prices for customers who do not participate in these schemes.
A review of over 12,000 goods revealed several items listed at higher prices than before, even though they were promoted as part of customer loyalty programs.
Loyalty card schemes appear to offer good value for money, as shoppers can build points and access discounted prices.
However, according to a survey, over half of the customers think that the prices for items at a particular store are higher when not being a member compared to regular pricing.
Previously, supermarkets have faced criticism over these programs, as they provide discounted rates to members who enroll, yet penalize individuals who choose not to participate or are unable to join.
The latest report indicates that prices for approximately 649 products at Boots increased for non-members coinciding with the launch of a loyalty program.
One of the most egregious instances involved an Oral-B iO7 blue electric toothbrush at Boots, which had a price tag of £400 for non-members and £150 for loyalty card holders back in May.
However, the toothbrush was priced at £400 for all customers for just 13 days before the offer came into play - before that it was £150 for all shoppers. The price has therefore been bumped up by £250 for non-loyalty shoppers.
At the same time, at Superdrug, the Olay Ultimate Day and Night Duo set is priced at £71.98 for customers who aren’t members and at a discounted price of £59.99 for those with a loyalty card.
However, the item was available at £71.98 for just 13 days prior to introducing the membership pricing, which seemed designed to make loyalty card holders feel they were receiving a special deal.
Previously, the bundle was offered at £35.98 for all customers.
At Tesco, Ambre Solaire Sun Cream Spray was priced at £6 for loyalty members and £8 for non-members, after having been uniformly priced at £8 for just two weeks previously. Prior to this change, the product cost £6 for everyone.
At Sainsbury's, Young's Chip Shop Omega 3 Fish Fillets were available to members for £2.50 and non-members for £4, whereas twenty-one days earlier, the price was set at £3.50 for all customers.
Stores have similarly been convicted of maintaining loyalty programs for up to six months continuously. The association claims this suggests that these so-called 'loyalty' discounts might not provide as much value for money as they seem to.
Ele Clark, the retail editor at Which?, stated: "Most of the discounts were genuine, but there were some suspicious non-member prices and instances that seemed like blatant exploitation."
'In the meantime, certain items were consistently, or nearly always, part of loyalty promotions, which made it challenging to identify a true discount.'
Consumer Watchdog has called on the Competition and Markets Authority (CMA) to provide clarity regarding how consumer laws apply to loyalty pricing schemes. They have also indicated they will utilize their new authorities should companies violate these regulations.
The regulatory body will acquire the authority to impose immediate penalties directly onto companies for violations of UK consumer laws.
Supermarkets employ loyalty cards to monitor shoppers' purchasing behaviors and collect their individual data.
Individuals registering must consent to the privacy policy, usually involving the exchange of their information with food companies and occasionally with advertising firms as well.
Following the Which? report, all mentioned stores stated that they adhered to industry pricing standards to provide fair prices.
A spokesperson for Boots stated: "We remain dedicated to providing our customers with excellent value, assisting them in saving money on all their healthcare and beauty requirements."
A spokesperson for Superdrug stated: "We frequently offer exclusive member discounts, multi-buy offers, and general price reductions to help all our customers save money. We consistently monitor competitors' pricing to guarantee ours remain competitive."
Sainsbury's stated that their customers recognize how elements like inflation and promotional offers influence prices.
A spokesperson from Tesco mentioned that their Clubcard Prices promotions adhere to stringent guidelines to guarantee authentic savings. Meanwhile, the Co-op stated that none of their baseline prices were raised to support their member discounts.
Read more
0 Komentar