Tesco Ireland has apologised “for any customer confusion” after it pleaded guilty to failing to correctly display its Clubcard prices.
It comes after a Competition and Consumer Protection Commission (CCPC) investigation last year found that Tesco had broken the law by failing to include unit pricing on Clubcard labels in stores.
All shops are legally required to display the price of their products per kilogram to allow consumers to directly compare costs across different stores.
After pleading guilty, Tesco was ordered to cover the CCPC’s legal fees and donate €1,000 to the Little Flower Penny Dinners charity.
Tesco Clubcards
In a statement, Tesco said it first introduced unit pricing on Clubcard labels last February.
It said the change would allow customers to make a direct comparison between Clubcard prices and the price of alternative products moving forward.
A spokesperson for the store said it accepted the CCPC investigation’s findings on the sample cases dealt with in court.
While the store's original statement did not include any apology to customers, the company later issued an update to Newstalk apologising for "any customer confusion".
"In relation to the sample cases, we apologise for any customer confusion and confirm all unit prices for Clubcard Prices continue to be displayed,” it said.
Rap on the knuckles
On Newstalk Breakfast this morning, Newstalk Business Editor Joe Lynam said the ruling will likely not affect customers’ decisions – once they’re getting good value.
“Consumers are very price conscious,” he said.
“If they think that they're getting good value at Tesco, irrespective of whether they've been rapped on the knuckles by the consumer watchdog, I think they will continue to shop there,” he said.
“If the fine was substantial – i.e. in the millions of euros – that would be a different discussion.”
CCPC
The CCPC said it “encourages consumers to check the unit prices when they shop and make a report to the CCPC where they are not provided”.
“Consumers shopping for groceries have to quickly evaluate a wide range of factors when deciding what products offer the best value for their money,” it said.
Unit pricing does not apply to shopping stalls, pubs, cafes and restaurants, as well as pre-packaged products smaller than 50 grams.