Charlotte Foster
Money & Banking

Supermarkets accused of pushing "confusing" promo labels

Coles, Woolworths and Aldi have all been accused of saturating their stores with "confusing" promotional labels that offer little to no discount. 

Research by consumer advocacy group Choice suggests one-in-four shoppers feel "misled" by discount stickers, finding it difficult to discern the promo price from the original price. 

More than 1,000 customers 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”.

According to the report, which has been passed on to the Australian Competition and Consumer Commission (ACCC) Supermarkets Inquiry, it was Coles that caused the most confusion, with their "while stocks last" stickers proving to be unclear to the average shopper. 

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 limited time, and which are unlikely to be restocked once the products are sold out.

But according to Choice, one-third of shoppers surveyed believed products tagged with the bright yellow tag were discounted, while another third were unsure of its meaning. 

Woolworths’ “member price” was also found to cause “considerable confusion”, according to the consumer watchdog.

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."

Coles, Woolworths and Aldi have all responded to the report, with Coles saying in a statement, “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” when buying their groceries. 

Choice is also calling for strong enforcement action from the ACCC to “send a clear message to the supermarkets that misleading pricing is unacceptable”.

Image credits: Choice 

Tags:
money & banking, supermarkets, discount