Notícias

A short guide to unit pricing

Posted by:Debbie Kitcher-Jones, Posted on:30 January 2024 – Categories:Consumer protection

What kind of shopper are you? Do you buy exactly the same things when you shop? Or maybe you’re happy with whatever’s on offer? 

However you like to shop, we all know there’s pressure on household budgets right now. People are really aware of the cost of living, and we’re all looking for ways to save money.  

Unit pricing can be a good way to check you are getting value for money at the supermarket. We’ve put together this short guide to help you understand what unit pricing is, and how it can help you make smart choices.  

You won’t become a millionaire overnight, of course. But over time, these little savings can add up, so it’s worth thinking about. We’ve also published some research into this if you’d like to know more.

What is unit pricing and how can it help you? 

Unit pricing is when the price of an item is provided using a standard measure. This might be by: 

• weight (for example kilo or gram) 
• volume (for example litre or millilitre) 
• quantity (for example per item)  

Where can I find unit prices? 

You can find unit prices on the shelf label in store and online. They’re usually displayed next to or below the selling price of the item. The unit price may be in smaller print, and so you may need to look harder if there is a loyalty or promotional offer happening. 

Here’s how a unit price might be displayed on a shelf label: 

Here’s how a unit price might be displayed online: 

How unit pricing helps you spot the best value for money 

There are a number of common assumptions out there about how to get the best value for money. Our analysis found the unit prices of some products compared to others can be surprising. 

You should know that: 

• bigger pack sizes don’t always offer the best value for money 
• items on a promotional offer aren’t necessarily the best value for money 
• items sold as part of a multi-pack aren’t always going to be cheaper than buying as individual items 
• pre-packaged bags of fruit and vegetables aren’t always cheaper than loose 

So check the unit price on the label before you buy. 

Here’s an example that shows that items on a promotional offer aren’t necessarily the best value for money: 

Beware! Unit prices can change, so they’re worth checking  

It’s always worth checking the unit price of items when shopping, whether you’re doing so online or in a store. We know that some shoppers have favourite items that they always buy, and you might be one of these people. But do check the unit price, because they: 

• can change over time 
• may be different depending on where you are shopping 
• may not be the same as the last time, or even first time, you bought the item 

Find out more 

To learn more about unit pricing, read our latest report and related consumer research. 

Tags: Consumer protection, online shopping

Unit pricing

The CMA has opened a project to consider the use of unit pricing in the groceries sector.From:Competition and Markets AuthorityPublished31 January 2023Last updated30 January 2024 — See all updatesCase type:Consumer enforcementCase state:OpenMarket sector:Retail and wholesaleOpened:31 January 2023

Administrative timetable

Case information

Publication of consumer research, unit pricing analysis, and messages for shoppers

30 January 2024: The CMA has published the findings from some qualitative consumer research that it commissioned to better understand how and when UK shoppers make use of unit pricing information when shopping for grocery products.

We have also published the findings from our analysis of the unit prices of a basket of every-day grocery products. We assessed the extent to which the unit prices of grocery products vary according to their size and packaging and, in turn, the extent to which unit pricing information can help people identify savings when grocery shopping.

In addition, we have published a short report setting out the key highlights from both pieces of work.

Our consumer research shows that some shoppers already find unit pricing helpful. Importantly it highlights that there is scope for more shoppers to use unit pricing, and also for those shoppers who do use it, to use it more regularly. The research highlights the types of purchases where shoppers find it can be most useful.

Our pricing analysis highlights the value of unit pricing when comparing between grocery items – revealing that shoppers’ commonly held assumptions about what products are cheapest on a per unit basis aren’t always right and that the pricing of some products relative to others can be surprising.

We are publishing a short guide and videos for shoppers to raise awareness of the value of unit pricing. This shows some of the rules of thumb that shoppers use to assess best value do not always hold true and encourages shoppers to use unit pricing more often as a reliable alternative to rules of thumb when shopping for groceries.

• Consumer research report (30.1.24)
• Unit pricing analysis report (30.1.24)
• Short summary report (30.1.24)
• Short guide (30.1.24)

Publication of unit pricing review findings and an open letter to grocery retailers

20 July 2023: The CMA has published the findings from its review looking at how grocery retailers are displaying unit pricing information in-store and online. During our review, we have seen problems with unit pricing which may affect consumers’ ability to compare products. Some of the problems stem from the Price Marking Order 2004 (the PMO) itself, which allows unhelpful inconsistencies in retailers’ practices and leave too much scope for interpretation.

We have also found examples of non-compliance with the PMO, particularly among some variety stores. We have written directly to certain grocery retailers to highlight specific compliance concerns and to tell them to take action to address the concerns that we have identified. We are also making recommendations to Government to reform the PMO and calling on grocery retailers to make certain changes to their unit pricing practices now, before any reforms are introduced.

• CMA Review of unit pricing in the groceries sector

Alongside our review findings, the CMA has published an open letter to all grocery retailers calling on them to ensure that they are complying with their obligations under the PMO.

• Open letter to grocery retailers on the use of unit pricing

We are continuing further work to consider unit pricing in the groceries sector and will publish a further update in Autumn 2023.

Launch of unit pricing review

31 January 2023: The CMA is undertaking a project focused on the use of unit pricing both in-store and online in the groceries sector. Unit pricing is a labelling system for displaying the cost of different products by reference to standard units of weight or volume intended to assist consumers in comparing the relative costs of different products regardless of their packaged size.

Press Notice: CMA launches grocery unit pricing review to help shoppers spot the best value for their money

This work follows the 2015 Groceries Super-complaint where the CMA previously concluded that complexities and inconsistencies with unit pricing may adversely affect consumers’ ability to make meaningful choices between products.

In the context of the rising cost of living, and the importance of helping consumers make informed choices when shopping for food and other essential products, as well as recent concerns raised by stakeholders about unit pricing practices, the CMA is revisiting this issue.

The project will consider:

• if the unit pricing issues identified during the 2015 Super-complaint persist
• compliance with the law by retailers
• consumer awareness and use of unit pricing information

The project is at an early stage and the CMA has not formed a view on these issues. We will provide an update on our work later in 2023.

Contacts

• Project Director, Louise Strong, louise.strong@cma.gov.uk
• Assistant Project Director, Debbie Kitcher-Jones, debbie.kitcher-jones@cma.gov.uk
• Senior Responsible Officer, George Lusty, george.lusty@cma.gov.uk

Any media enquiries should be directed to a member of our Press Office, press@cma.gov.uk

Published 31 January 2023

Unit pricing analysis and consumer research

Further findings from the CMA’s review of unit pricing in the groceries sector.From:Competition and Markets AuthorityPublished30 January 2024Get emails about this page

Documents

Summary of consumer research and unit pricing analysis

HTML

Consumer research

PDF, 1.19 MB, 52 pages

This file may not be suitable for users of assistive technology.Request an accessible format.

Groceries unit pricing: pricing analysis

PDF, 1.51 MB, 44 pages

Details

This forms part of our review of unit pricing in the groceries sector.

The CMA has produced an analysis of the unit prices of a basket of everyday grocery products.

We have also commissioned qualitative consumer research to better understand how and when UK shoppers use unit pricing information when shopping for grocery products.

You can also read our short guide to unit pricing.

Find out more about our action to contain cost of living pressures.

Published 30 January 2024

Loyalty pricing in the groceries sector

The CMA has begun a review of loyalty pricing by supermarkets.From:Competition and Markets AuthorityPublished30 January 2024Case type:Consumer enforcementCase state:OpenMarket sector:Retail and wholesaleOpened:30 January 2024

Contents

1. Administrative timetable
2. Summary
3. Contact

Administrative timetable

Summary

With the rise in some supermarkets making cheaper prices only available for loyalty card members, the CMA announced that it would begin a review of loyalty pricing by supermarkets in January 2024.

In line with that announcement, our review of loyalty pricing started this month. The review is part of a programme of work by the CMA to help tackle cost of living pressures in the groceries sector.

The review will consider issues such as:

• whether any aspects of loyalty pricing could mislead shoppers, for example whether the loyalty price is a genuine promotion or as good a deal as presented
• whether any groups of shoppers are disadvantaged by this type of promotional activity
• whether loyalty pricing is impacting consumer behaviour, and whether this has an impact on how supermarkets compete with each other

The review is at an early stage and we have not formed any views on the issues. We are now beginning our engagement with supermarkets. We will publish an update on our work in July 2024, and expect to complete our review by the end of the year.

Contact

• Senior Responsible Officer, George Lusty, george.lusty@cma.gov.uk
• Project Director, Louise Strong, louise.strong@cma.gov.uk
• Assistant Project Director, Debbie Kitcher-Jones, debbie.kitcher-jones@cma.gov.uk
• Email groceriespricing@cma.gov.uk

Any media enquiries should be directed to a member of our Press Office: press@cma.gov.uk

Investigation of the Atlantic Joint Business Agreement

The CMA is investigating the Atlantic Joint Business Agreement between American Airlines, members of International Consolidated Airlines Group (British Airways, Iberia and Aer Lingus) and Finnair under Chapter I of the CA98.From:Competition and Markets AuthorityPublished11 October 2018Last updated30 January 2024 — See all updatesCase type:CA98 and civil cartelsCase state:OpenMarket sector:Transport

Contents

1. Timetable
   1. Change log
   2. Outcome of the 2023 slot award process
   3. Decision to issue interim measures and extending remedies until 2026
   4. London-Boston slot awarded in 2021
   5. Decisions not to accept commitments and to issue interim measures
   6. Consultation on commitments
   7. Interim measures application dismissed
   8. Case information
   9. Notes
2. Contacts

Timetable

Change log

The following changes have been made to the case timetable since it was first published in October 2018:

Outcome of the 2023 slot award process

30 January 2024: In accordance with the CMA’s Interim Measures Directions issued on 4 April 2022, the CMA has approved the further use of the four available remedy slots by airlines which compete with the AJB airlines, maintaining additional competition whilst the CMA continues its investigation. Following a tender process, Virgin Atlantic Airways has been awarded a daily slot pair to operate services on the London-Boston route for four IATA Seasons commencing in IATA Summer Season 2024. Virgin Atlantic Airways will continue to operate a daily slot pair on the London-Miami route and Delta Air Lines will continue to operate a daily slot pair on each of the London-Dallas (via Atlanta) and London-Boston routes. It is anticipated that all four of the remedy slots will be operated by Virgin Atlantic Airways and Delta Air Lines until the end of IATA Winter season 2025.

Decision to issue interim measures and extending remedies until 2026

4 April 2022: Due to the continued impact of the coronavirus (COVID-19) pandemic on the aviation sector and the fact that material recovery is taking longer than was anticipated in 2020, the CMA wants to ensure that the remedies made available under the 2020 Interim Measures continue to be available for 2 additional years. As a result of these unprecedented circumstances, the CMA is not in a position to complete its investigation in advance of the expiry of the 2020 Interim Measures in March 2024. A tender process will take place in autumn 2023 for the remedy slots for the additional 2 years.

• Decision to issue interim measures (PDF, 418KB) (4.4.22)
• Appendix: Interim measures directions (PDF, 204KB) (4.4.22)

The 2022 Interim Measures issued by the CMA will expire in March 2026, by which time it is expected that the airline sector should be in a more stable position. The CMA plans to complete its investigation and, if appropriate, put in place a longer-term remedy, before the interim measures expire.

London-Boston slot awarded in 2021

22 February 2021: The CMA has approved a Slot Release Agreement which will allow a new competitor, United Airlines, to enter the London-Boston route. The CMA has made this award in accordance with the terms of Clause 3 of the CMA’s Interim Measures Directions issued on 17 September 2020 and following a tender process in Autumn 2020. In that process, United Airlines was awarded a daily slot pair for six IATA Seasons commencing in IATA Summer Season 2021. The CMA understands that United will announce its plans for servicing the route in due course (taking into account the ongoing COVID-19 pandemic and related restrictions).

Decisions not to accept commitments and to issue interim measures

21 September 2020: A Monitoring Trustee has been appointed, in accordance with clause 10 of the Interim Measures Directions. Find more information about the AJBA Monitoring Trustee or contact Justin.Menezes@mazars.co.uk.

17 September 2020: Having considered representations received in response to the May 2020 commitments consultation and as a result of the uncertainty created by the coronavirus (COVID-19) pandemic on the aviation sector, the CMA has decided that it would not be appropriate to accept the commitments offered by American Airlines and International Consolidated Airlines Group.

The CMA will not be able to complete its investigation before the expiry of various agreements currently in place pursuant to the Commission’s 2010 commitments. This means that an ‘enforcement gap’ (meaning a situation whereby there are no remedies in place to address the competition issues related to the AJBA) would have arisen if action was not taken urgently on an interim basis. Such an enforcement gap would significantly negatively impact the public interest (i.e. the interests of protecting competition and, by extension, consumers). Accordingly, the CMA has decided to issue interim measures directions.

The interim measures which have been imposed effectively extend the terms of the 2010 Commitments for an additional 3 years until March 2024. Airlines currently operating slots on London to Boston, Dallas and Miami routes pursuant to the 2010 commitments will continue to operate these slots for an additional year, until March 2022.

A tender process will take place in March 2022 for these slots for the remaining two years. A tender process will be undertaken this autumn in relation to a second slot on the London to Boston route.

• Decision to issue interim measures (PDF, 411KB) (17.9.20)
• Appendix: Interim measures directions (PDF, 201KB) (17.9.20)
• Decision not to accept commitments (PDF, 122KB) (17.9.20)
• Press release: CMA acts to protect competition on UK-US airline routes (17.9.20)

The interim measures issued by the CMA expire in March 2024, by which time it is expected that the airline sector should be in a more stable position. The CMA plans to complete its investigation and, if appropriate, put in place a longer-term remedy, before the interim measures expire.

Consultation on commitments

7 May 2020: The CMA has published a notice of intention to accept the commitments offered by International Consolidated Airlines Group and American Airlines and invited representations from interested third parties. The CMA is seeking views on the proposed package, but this comes at a time when the coronavirus (COVID-19) pandemic is having a major impact on the aviation sector. In the CMA’s discussions with airlines, they have emphasised the importance of certainty about the future availability of slots, due to the imminent expiry of the 2010 commitments. The CMA is therefore proceeding to market test the proposed package but is also giving additional time for responses if required.

• Notice of intention to accept binding commitments (PDF, 545KB) (7.5.20)
• Press release: CMA consults on BA and American Airlines commitments (7.5.20)

Interim measures application dismissed

30 January 2020: On 4 October 2019, Virgin Atlantic Airways Limited submitted an application to the CMA requesting that the CMA exercise its power to issue an interim measures direction to American Airlines Inc.

The CMA’s final decision not to impose the requested measures was issued to Virgin Atlantic Airways Limited on 10 January 2020. This decision does not have a bearing on the outcome of the CMA’s investigation into the AJBA, which remains ongoing. In the circumstances of this case and in the light of the continuing investigation, the CMA does not intend to publish a summary of its decision at this time.

Case information

On 11 October 2018, the Competition and Markets Authority (CMA) launched a competition investigation into the Atlantic Joint Business Agreement. In line with the approach of the European Commission when it first investigated the agreement during 2009 to 2010, the investigation is being conducted under the rules on agreements restrictive of competition under the Chapter I prohibition in the Competition Act 1998.

Five airlines are currently signed up to the Atlantic Joint Business Agreement: American Airlines, Aer Lingus, British Airways, Iberia, and Finnair.

Following an investigation under EU competition law, in 2010 the European Commission accepted commitments from the parties in relation to 6 routes to address potential competition concerns: London-Dallas, London-Boston, London-Miami, London-Chicago, London-New York and Madrid-Miami. These included a commitment to make landing and take-off slots available to competitors at either London Heathrow airport or London Gatwick airport. These commitments were binding for 10 years. See the Commission’s Commitments Decision (PDF, 223KB) for more information.

On expiry of the parties’ commitments, in 2020, the European Commission may have re-assessed the agreement, but there was no requirement for it to do so. As 5 of the 6 routes subject to commitments are from the UK, and to prepare for the time when the European Commission will no longer have responsibility for competition in the UK, the CMA decided to review afresh the competitive impact of the agreement in anticipation of the expiry of the commitments.

No assumption should be made that the Atlantic Joint Business Agreement infringes competition law.

Further detail of the CMA’s procedures in Competition Act 1998 cases is available in our guidance.

Notes

• Parties under investigation: American Airlines Group Inc; International Consolidated Airlines Group SA (including Aer Lingus Limited, British Airways plc and Iberia Líneas Aéreas de España SA); and Finnair OYJ. Aer Lingus is a signatory to the agreement but is not yet operating any services as part of the Atlantic Joint Business Agreement as this is subject to the United Stated Department of Transportation extending Anti-Trust Immunity (currently under review).
• The CMA is liaising with the United States Department of Transportation in relation to the investigation.

Contacts

Published 11 October 2018

• Assistant Project Director: Eren Kilich (020 3738 6887, Eren.Kilich@cma.gov.uk)
• Project Director: April Carr (020 3738 6204, April.Carr@cma.gov.uk)
• Senior Responsible Officer: Ann Pope (020 3738 6786, Ann.Pope@cma.gov.uk)

La CNMC inicia un expediente sancionador contra Naviera Armas

30 Jan 2024 |Competencia Nota de prensa

• En mayo de 2018, la CNMC autorizó con compromisos la compra de Trasmediterránea por Naviera Armas.
• Estos compromisos permitían que una tercera compañía (FRS) comenzara a operar en las rutas donde estaba presente Naviera Armas.
• La empresa habría incumplido parte de los compromisos presentados.

La Comisión Nacional de los Mercados y la Competencia (CNMC) ha incoado un expediente sancionador (SNC/DC/083/23) contra Bahía de las Isletas, S.L., matriz del grupo Naviera Armas, por incumplir supuestamente los compromisos que asumió al comprar Transmediterránea en 2018 (C-0922/18, nota de prensa).

La operación creaba un monopolio en el tráfico marítimo de pasajeros en la ruta entre la Península y Canarias. Además, planteaba riesgos para la competencia en el  transporte marítimo de carga y pasajeros en las rutas entre el Sur de la Península y Melilla e interinsular canario, ya que desaparecía un competidor relevante.

Incumplimiento de compromisos
Los compromisos presentados por Naviera Armas solventaban estos problemas de competencia: permitían que una tercera compañía (FRS) comenzara a prestar servicios de transporte marítimo de pasajeros y carga en las rutas donde estaba presente Naviera Armas (Motril-Melilla y Huelva-Canarias, una ruta circular que le permitiría prestar tráfico interinsular).

Para ello, estaba previsto que Naviera Armas y FRS firmaran contratos de fletamento de tres años de duración (prorrogables por un año), y una serie de obligaciones que permitirían que FRS operara de manera eficaz en esas rutas: cesión de uso de amarres, sistema de expedición de billetes, abstención de uso de marca y comunicación a clientes. Además, para garantizar la eficacia de estos contratos, se incluyeron cláusulas que obligaban a informar a la CNMC e impedían modificar las condiciones sin autorización previa.

El 13 de septiembre de 2023, la CNMC declaró que Naviera Armas había incumplido parte de los compromisos aceptados en 2018.

La incoación de este expediente no prejuzga el resultado final de la investigación. Se abre ahora un periodo máximo de tres meses para la instrucción del expediente y para su resolución por la CNMC.
 
Contenidos relacionados:

• SNC/DC/083/23
• VC/0922/18: Naviera Armas/Transmediterránea
• C-0922/18: Naviera Armas/Transmediterránea
• Nota de prensa (23/05/2018): La CNMC aprueba con compromisos la compra de Trasmediterránea por Naviera Armas
• Blog (25/04/2017): En la CNMC vigilamos las concentraciones entre las empresas

 Nota de prensa

 Press release 

Documento no oficial destinado a los medios de comunicación y que no vincula a la CNMC.  Reproducción permitida solo si se cita a la fuente.

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