Uncovering the Hidden Costs of Loyalty Cards
- Loyalty schemes may not always offer genuine discounts, according to Which? study
- Some products were found to be continuously on promotion or never returned to non-member prices after deals ended
- 10% of Tesco’s products had non-member prices for less than half the time
- Which? calls for updated guidance on how consumer law applies to loyalty pricing
- Membership schemes still help shoppers save on average, with savings ranging from 10% to 33% across retailers
A new study by consumer champion Which? has revealed that retailer loyalty card discounts do not always offer genuine savings, as some products are continuously kept on promotion or never return to their non-member prices after a deal ends. The investigation looked into the pricing practices of Boots, Co-op, Morrisons, Sainsbury’s, Superdrug, and Tesco and found that 10% of Tesco’s products had non-member prices for less than half the time. Which? is calling for updated guidance on how consumer law applies to loyalty pricing to help regulators crack down on businesses breaking rules. Despite these findings, membership schemes still help shoppers save on average, with savings ranging from 10% to 33% across retailers.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the study conducted by Which? on loyalty card discounts in various retailers. It presents the findings of the investigation, quotes from the retailers, and includes a comparison with previous studies. However, it could have provided more context on the CMA’s investigation and its conclusion.
Noise Level: 6
Noise Justification: The article provides relevant information about the study conducted by Which? on loyalty card discounts and their impact on shoppers’ savings. However, it contains some repetitive information and could have provided more in-depth analysis of the findings and potential solutions to address the issue.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and loyalty card schemes
Financial Rating Justification: The article discusses the pricing practices of major retailers and their loyalty card schemes, which can impact consumer spending habits and potentially affect the financial decisions of shoppers. This has implications for the retail industry and could lead to changes in regulatory guidance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.
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