Out-Law / Your Daily Need-To-Know
Asda, Sainsbury, Tesco, Waitrose and Ocado have agreed to clarify their online pricing, after customers complained to the OFT that they were being charged a different price on delivery from the price the supermarkets advertised at the time of ordering.
The discrepancy was caused by the supermarkets’ use of guide prices on their websites. These show the prices of goods in-store on the day the order is placed. With the exception of Ocado, the supermarkets actually charge customers the in-store price of the goods on the day they are delivered – and this may be more or less than customers were expecting.
The stores justify this by saying that customers are not contractually bound until delivery, and therefore are free to reject deliveries if, for example, they are not satisfied with the prices to be charged.
Ocado, meanwhile, sells goods at a fixed price except for goods sold by weight, such as fruit and vegetables. In those cases, the price per unit weight is fixed, but weights may not precisely match the order. It gives customers a cancellation right in respect of non-perishable items.
According to the OFT, none of the supermarket websites make it sufficiently clear that the prices shown are guide prices, nor do they show what relation the guide prices have to the actual prices charged.
All five online retailers have now agreed to clarify matters, promising to provide upfront information about their guide price policies and how the online shopping process works.
They will ensure that special offer prices quoted online are treated as firm prices for orders that are to be delivered in the offer period and that the duration of offers will be made clear. Easy access to the store’s terms and conditions will also be provided.
“We welcome the supermarkets' improvements to the information available to customers buying groceries online,” said OFT Chief Executive John Fingleton. “Customers have a right to clear and transparent information upfront when making their buying decisions.”
