OFT: 8 Supermarkets Sign up to New Special Offers/Promotions Principles

By Ian Walker

LONDON--The U.K. Office of Fair Trade, or OFT, said Friday eight supermarkets have agreed to a set of principles that address concerns over special offers and promotions for food and drink, following concerns that shoppers could be confused by the way prices are displayed, advertised and promoted.

Marks and Spencer Group PLC (MKS.LN), J. Sainsbury PLC (SBRY.LN), Tesco PLC (TSCO.LN), William Morrison Supermarkets PLC (MRW.LN), Aldi, Co-Op, Lidl and Waitrose all signed up to the new principles which clarifies the OFT's view on how promotional claims should be used.

OFT Chief Executive, Clive Maxwell, said the principles, taken together with previous guidance, provide supermarkets with a clear benchmark for how they should be operating so their food and drink promotions reflect the spirit, as well as the letter of the law.

"We are pleased that supermarkets have engaged constructively throughout our investigation and we will keep a watching brief on promotional practices in this sector," Mr. Maxwell said.

The OFT said it has made no finding that the supermarkets have breached the law or were engaging in misleading promotional practices. However, it did find inconsistency in the way the law was being interpreted and applied.

The OFT's investigation involved mystery shopping exercises, a consumer survey, a round-table attended by consumer groups, industry associations and the supermarkets, and bilateral meetings with the supermarkets.

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