The way supermarkets advertise prices under loyalty card schemes has become misleading, according to critics. Shoppers are now faced with a dual-pricing system where the price for cardholders differs from that for non-cardholders, creating an illusion of savings that do not exist.
Under this system, products are advertised as half-price for loyalty card users, but the non-card price is artificially inflated. This effectively charges customers a penalty for not signing up and handing over their data, which is then sold to third parties. Reports indicate that Tesco and Sainsbury's made £300 million from selling customer data.
Consumers feel forced to join these schemes to avoid paying significantly higher prices. For example, over Christmas, shoppers paid 40 per cent more for Christmas dinner without a loyalty card. At Sainsbury's, a salmon was £25 without a Nectar card but £12 with one. Similarly, an Oral-B Pro Toothbrush costs £160 without a Nectar card and £65 with, but is available elsewhere for around £70.
The practice has sparked criticism and even jokes on TikTok, but shoppers say they have no choice but to participate. 'We can't opt out of eating, we can opt out of Facebook,' one commentator noted. Consumer protection laws, such as the Consumer Protection from Unfair Trading Regulations 2008, ban misleading price comparisons, and critics argue these inflated prices may breach those rules.
A Sainsbury's spokesperson defended the scheme, saying: 'We are committed to offering the best possible value and we have never been more competitive on price.' However, many feel the system is designed to extract data rather than reward loyalty, with shoppers holding cards for multiple supermarkets just to avoid paying inflated prices.
