Tesco Clubcard pricing ‘could be breaking law’ – supermarket reported to watchdog
2026 Grocery Market Context Summary
- Transparency: Unit pricing is now legally required and standard across all loyalty promotions following the CMA's 2024 rulings.
- Price Wars: Supermarkets in 2026 are heavily invested in "Member Only" pricing to combat the growth of Aldi and Lidl, who generally eschew complex loyalty tiers in favor of flat low pricing.
- Household Spending: While the percentage of income spent on food remains higher than in 2019, the average annual cost of £3,864 represents a cooling compared to the 2023–2024 peak.
The supermarket giant has been reported to the Competition and Markets Authority (CMA) over unclear prices on the "vast majority" of its Clubcard discounts.
Tesco, which has consistently defended its loyalty strategy, first began rolling out exclusive Clubcard Prices across its stores in 2020. Several years on, this two-tier pricing model has become the industry standard, with most major UK supermarkets now requiring loyalty app membership to access their lowest advertised prices.
It claimed the average customer could save up to £351 a year with the promotions when compared with the regular prices.
But the biggest savings could actually be made by ignoring many of the Clubcard prices and choosing items more carefully.
When looking at the cost per 100g of some items, it is often actually more economical to buy a different size, rather than buy the discounted item, consumer campaigners Which? found.
During a landmark 2023 investigation by Which?, researchers highlighted confusing price points; for instance, a 700g bottle of Heinz ketchup was £3.50 on Clubcard (50p per 100g), while a larger 910g bottle at £3.99 actually offered better value at 43.8p per 100g. Crucially, unit pricing for the Clubcard deals was often missing at that time.
Following pressure from the CMA and consumer groups, Tesco updated its policy in 2024 to include unit pricing on all Clubcard promotional labels, making it easier for 2026 shoppers to compare the true value of different pack sizes.
Sue Davies, head of food policy at Which? told the BBC it was "simply not good enough" and Tesco must "think of its customers". She added: "They have a duty to ensure pricing is clear so that customers can get the best value. Tesco's unclear Clubcard pricing is at best confusing for shoppers struggling with soaring food inflation and at worst, could be breaking the law."
Sainsbury's offers similar discounts to its Nectar card members, but does include the unit price on its labels.
The CMA continued to investigate claims supermarkets were using soaring inflation as an opportunity to raise prices even higher than necessary.
After the record-breaking 19.1% food inflation peak seen in 2023, the landscape has shifted significantly. In 2026, food costs have finally stabilized, and in many categories, prices are dropping as a fierce supermarket price war takes hold. According to the latest NimbleFins research, the average UK household now spends approximately £73 a week (or £3,864 a year) on food and non-alcoholic drinks, with retailers increasingly using loyalty discounts to lure shoppers away from budget rivals.
NimbleFins previously reported the Government considered a voluntary price cap on essential foods during the peak of the 2023 cost-of-living crisis. However, as global supply chain pressures eased through 2024 and 2025, the focus shifted from government intervention to market-led price cuts and enhanced transparency in loyalty schemes.
In a statement, Which? said: "Under the CPRs, retailers must also avoid 'unfair commercial practices'.
"Which? believes under these rules unit prices could be seen as 'material information' which most people would need in order to make an informed decision about how to get the best value from what they are buying.
"Which? has found issues with unit pricing across all supermarkets but Tesco stands out as it consistently omits unit pricing from Clubcard offers, which now account for almost all promotions it offers on groceries."
Tesco rejected that it was breaking the law and said it had approval from trading standards officers.
A spokesperson said: "Providing great value and clear pricing is really important to us, we are supportive of calls for greater clarity on the regulations in this area," it said.
"However, given that we are complying with all the current rules, we are disappointed that Which? has chosen to make these ill-founded claims against our Clubcard Prices scheme, which helps millions of households get great value week in, week out."
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Image courtesy of iStock.com / Roger Utting Photography.