Government to tackle unit pricing on food and drink items

Consumer affairs minister Jo Swinson says changes to labelling are needed to help shoppers identify the best deals

Retailers are required to display both a selling price and a unit price, but the unit measurements can differ. Photograph: David Sillitoe

The government is to set up a working group in the new year in a further attempt to put an end to the inconsistent use of "unit prices" on food and drink.

A taskforce including representatives of the UK's largest food manufacturers, leading supermarkets and local council enforcement officers will look at whether current legislation is acting as a barrier to retailers making further improvements and consumers getting the clarity they need when shopping.

Under the so-called "price marking order", retailers are required by law to display both a selling price and a unit price on the shelf labels of food and drink products. The unit price is the price by weight or volume that allows shoppers to compare the true cost of items, even if they come in different sizes.

But popular products where the unit price is often confusing include washing powder, which can be bought as powder, liquid or tablets; teabags; ketchup; mayonnaise; and ice cream. For example, mayonnaise and ketchup can be unit priced as both per 100g or per 100ml.

Announcing the launch of the group, the consumer affairs minister Jo Swinson welcomed progress made by retailers, and said the onus was now on manufacturers to make a further breakthrough to more consistent labelling. She said that while she hoped to be able to obtain industry agreement on the issue, she did not rule out changing the law if that was a better alternative.

Swinson hailed the progress made by some supermarkets in improving label visibility. Both Tesco and Waitrose are increasing the font size of their labels, while the Co-op is stripping out unnecessary information for consumers such as barcodes.

Sainsbury's has changed 30,000 shelf-edge labels over the past 18 months in an attempt to make things clearer, while Morrisons has changed 2,000 labels and both Asda and M&S are reviewing their practices.

Swinson said: "This year around £74bn will be spent in the 10 largest supermarkets, which make up around half the market. So it's a win-win situation if the big 10 are giving consumers a fairer way to understand the prices they are paying."

The working party will include representatives of the British Retail Consortium and the Food and Drink Federation. The BRC's director for business and regulation, Tom Ironside, said: "We are delighted that the minister recognises the commitment made by our members to give consumers clear and accessible information about the products they buy.

"Our food retailers will continue to work with the Department for Business, Innovation and Skills to build on recent achievements, ensuring that the approach is as coherent and consistent for the consumer as is possible."

The latest move follows a campaign over the past two years by the consumer group Which? to get widespread change and more transparency in pricing. Through its Price It Right campaign it has encouraged consumers to sign up to a national pledge calling for clearer, more consistent unit pricing on food.

The Guardian's Money section, meanwhile, has featured dozens of "daft deals" that reveal confusing and misleading pricing on special offers and discounts, with multibuys, for example, more expensive than buying the items individually.