Some loyalty cards are an 'outright rip off', warns Which?, as group calls for crackdown on 'questionable' discounts

22 August 2024, 12:46

Some loyalty cards are a rip-off, an investigation has claimed
Some loyalty cards are a rip-off, an investigation has claimed. Picture: Alamy

By Kit Heren

Many loyalty card schemes ostensibly offering discounts are a "rip-off", according to an investigation by consumer group Which?

Listen to this article

Loading audio...

The group looked at the pricing history of 12,000 products at supermarkets and healthy and beauty chains to work out how many of the prices available to members of the scheme were "genuine" savings.

Researchers looked at one "snapshot" day to examine how many times the non-member prices on items with loyalty discounts had been in place during the previous six months

At Boots, 10% of products had been at their non-member price for less than half the time, and at Superdrug, that was 16% of products.

Among supermarkets, that figure was at 10% for Tesco, 5% at Sainsbury's and 3% at Co-op.

This suggests that many of the discounts on offer were "questionable", although most were not misleading, according to Which?

Read more: Tesco announce big change to how it displays Clubcard prices - and it could save you money

Read more: 'Entirely false and insulting': Row breaks out after Waitrose unseated as most expensive supermarket in UK

Boots on Oxford Street
Boots on Oxford Street. Picture: Getty

Which? found that products at Boots and Superdrug were raised to a higher price before going on offer.

For example at Boots, an electric toothbrush was at a non-member price of £400, compared to a price for members of £150. This product was only £400 for 13 days before, before which it was £150 for everyone.

Overall, researchers showed that Superdrug’s loyalty prices gave an average 33% discount off the non-member price.

That compared with 25% off at Morrisons, 24% at Sainsbury’s and 23% at Tesco, and 10% off at both Co-op and Boots.

Which? said the discounts might not be as good as they appear if the non-member price had not been in place very long, or was considerably higher than the price at other shops.

Superdrug in Liverpool
Superdrug in Liverpool. Picture: Getty

The group is now calling for the Competition and Markets Authority to tackle "questionable" pricing practices.

Ele Clark, Which? Retail Editor, said: "Loyalty cards are increasingly big business, with the explosion in two-tier pricing meaning shoppers will often pay a lot more if they aren't a member of the retailer's scheme. But while the discounts can look impressive, many shoppers are growing suspicious of non-member prices that seem high.

"We looked at the pricing history of thousands of products and found that, while the majority of discounts were not misleading, there were some questionable non-member prices and some examples that looked like an outright rip-off. Meanwhile some products were always, or almost always, on loyalty promotion, making it difficult to spot a genuine deal.

"Guidance on pricing laws needs to be updated to include loyalty pricing, to help regulators crack down if businesses break the rules. The CMA should continue to monitor loyalty pricing practices across key consumer sectors and be ready to use its new powers to take action against retailers that don’t comply."

Sainsbury's in Birmingham
Sainsbury's in Birmingham. Picture: Getty

A Boots spokesman said: “All promotions, including Price Advantage [loyalty offers], are assessed against all applicable laws and guidelines set out by the Chartered Trading Standards Institute.”

A Superdrug spokesman said its loyalty cards offered "genuine value and savings" and that it regularly compared prices elsewhere on the market to ensure this.

More Latest News

See more More Latest News

Katy Perry holding a daisy up to the sky after her flight in Blue Origin’s New Shepard NS-31

Katy Perry will write a song about her experience after returning from space

Staff arrived on Friday morning to find out the foodbank had been broken into and vandalised.

Charity workers 'devastated' as church foodbank in Glasgow trashed and vandalised during 'break-in'

Jamie Redknapp working as a pundit in 2024.

Jamie Redknapp banned from driving for 12 months after being caught speeding twice

The graves of 'babies and young children' have been defaced at a cemetery in Watford

'Unspeakable act' sees 85 graves vandalised in 'Islamophobic hate crime' including graves of 'babies and children'

Exclusive
Franck Magennis, a barrister at Garden Court Chambers, is arguing that Hamas should be removed from the UK's list of proscribed terrorist groups.

Hamas 'poses no threat to UK' claims lawyer fighting to remove group from terror list

Lexi Jones is the daughter of Ziggy Stardust singer David Bowie.

David Bowie's daughter Lexi Jones releases debut album as she slams claims she's 'copying' father in heartfelt message

A 5.2-magnitude earthquake has shaken southern California, sending boulders tumbling on to rural roads outside San Diego and rattling items off shelves and walls, but officials reported no injuries or major damage.

5.2 earthquake rocks Southern California shaking buildings

"Rush" - World Premiere - Inside Arrivals

Cause of death of Warwick Davis' wife revealed as family hoped inquest into death would 'provide us with answers'

Newcastle United manager Eddie Howe has been diagnosed with pneumonia and will miss the clubs next two games

Newcastle boss Eddie Howe diagnosed with pneumonia and will remain in hospital

Kevin Campbell died of natural causes at the age of 54 coroner finds

Former Arsenal and Everton footballer Kevin Campbell died of natural causes, coroner finds

Jeff Bezos owns the Blue Origin space tourism company

How much is it to fly on the Blue Origin space tourism rocket?

Abbi Taylor

'Adult baby diaper lover' admits dumping soiled nappies and smearing excrement on milk bottles at nurseries

Scientists have found a new antibiotic that could treat gonorrhoea

Scientists hail first new antibiotic for gonorrhoea in decades amid rise in 'super strains'

Police have named the man killed in an explosion in Worksop

Pictured: Father who died in Worksop house explosion named after massive blast

Blue Origin launched into space today with an all-female crew

Who was on the all-female Blue Origin rocket? From Katy Perry to Jeff Bezos fianceé Lauren Sánchez

Kitchen use has been suspended at HMP Frankland.

Kitchen use suspended in high-security prison units after Manchester Arena terrorist's attack on three prison officers