Tesco respond to 'Breaking the law'

MadsL

See this thread first. My reply to Tesco's response.


Dear ******,

Thank you for your response which I received in the post yesterday. I must confess that I was a little disappointed to receive such a stock response after you had promised during our many phone conversations to investigate fully with the relevant departments the breaches of the regulations that I highlighted almost a month ago.

Please allow me to respond to your letter which I now quote in full below.

Further to our recent telephone conversations and your emails to our office in relation to Unit pricing in our Lower Baggot St store. Firstly I would like to apologise for the delay in responding to you.

Please be assured that I have discussed the points you raised with the relevant departments. They have informed me that certain products, which you mentioned,
for example Tesco Eco-soft Toilet Tissue or products sold individually like Cauliflower, do not require unit pricing. We appreciate you taking the time to let us know
your comments, I can confirm that we are working closely with the office of the Director of Consumer Affairs in this matter.

We check 270,00 prices per week with particular emphasis on areas with frequent promotions such as fresh foods and all products which had a price change the previous week are checked on a weekly basis.

I would like to assure you that we have a comprehensive set of policies and procedures in all our stores and head office to manage our business from a price integrity perspective. We monitor a number of price integrity checks on a weekly basis to ensure ongoing compliance and to drive continuous improvement in all our stores.

I wish to inform you that Tesco Ireland are members of EAN (the Regulatory Body for Electronic Commerce in Ireland) and fully endorse their scanning Code of Practice. This code of practice allows EAN to conduct regular unannounced pricing surveys in our stores and to date we have passed all of these checks without exception.

I do hope that the above will go someway to alleviate your concerns. Thank you for taking the time and the trouble to contact us regarding these matters."

"I would like to respond as follows;

I would agree that certain products sold by Tesco are exempt from displaying a unit price, however the items that I pointed out to you are, as I read the law, NOT exempt from the requirement to display a unit price. Which particular products in the list I sent to you would Tesco say are exempt from this requirement? Could you please point me to the relevant section of the legislation that excludes those items from the requirement to display unit pricing? Are apples exempt? Pears? Are strawberries in a 227g pack exempt from displaying a clearly marked per kilo price? I believe the law is quite clear in this regard. If Tesco toilet tissue is exempt from the requirement to display unit pricing, then why does Tesco display unit pricing for Kittensoft toilet tissue but not Tesco brands and when does Tesco expect to consistently price this category of goods?

You state that Tesco checks over 270,000 prices each week. This is perhaps to be expected from Ireland's largest retailer. Personally as a citizen I comply with many laws on the statute, yet compliance with the majority of the law is no defence. If I break the law, I can expect to be penalised. How is Tesco any different? Tesco has been widely consulted on the implementation of these regulations, how then does Tesco have a difficulty in compliance?

I am delighted that Tesco has "a comprehensive set of policies and procedures in all our stores and head office to manage our business from a price integrity perspective. We monitor a number of price integrity checks on a weekly basis to ensure ongoing compliance and to drive continuous improvement in all our stores" However it would seem that it is difficult to communicate any pricing errors through those procedures. I have pointed out to Tesco on more than one occasion prices that are not marked or incorrectly marked and nothing has been done, I fail to see how you are providing training in procedures to be followed when errors are pointed out to staff. Perhaps you could outline for me the procedure that is followed when a customer points out a failure to comply with pricing legislation to a member of staff. My experience has been is that the complaint is largely ignored by the staff in-store. It seems even writing a letter of complaint to Tesco customer services results in a general response rather than specific action and investigation.

I am aware that Tesco is a member of EAN and subscribes to the scanning code of practice. Is it not part of the scanning code of practice to clearly display unit prices?
Quoting from the EAN Scanning Code of Practice:

"Where a product is or may be for sale, the selling price of that product shall be indicated.

Where a product is or may be for sale, the unit price of that product shall be indicated.

The indication of the selling price and unit price of a product must be unambiguous,
easily identifiable and clearly legible and visible."

You point out that Tesco has never failed a EAN survey, however is it not the case that Tesco pays a considerable amount each year (€3,394.05) to belong to what is effectively a retailers' association? Tesco was prosecuted in July 1999 by the ODCA after pleading guilty to seven offences of overcharging and failing to indicate the selling prices. As I recall the company was fined £400 each in respect of five of the offences, and £900 each on the other two, a total of £3,800.
You express the hope that your letter will go someway to alleviating my concerns, however I'm puzzled as to how a letter that fails to address the specific issues that I raised can go towards alleviating my concerns. Let me spell out precisely what would alleviate my concerns about Tesco's pricing policy; if someone within the Tesco organisation were to answer the following questions;
1. When will the following items be brought into compliance with the law? It is almost one month after I have plainly brought this to Tesco's attention and in my local store these 25 items are still failing to display unit prices;
Fun sized apples polybag
Oranges Class 1 in a net.
Peaches punnet
Kiwis as a 4 pack
Kiwis As a 6 pack
Tesco Organic Apples
Tesco Organic Dessert Apples
Tesco Organic Bananas
Mild Onions Class 2 3pk
Plums Punnet
Strawberries 227g
18 Greenfield eggs

Sanex Sensitive Bodywash 500ml
Tesco Value Kitchen Towels
Sun Dishwasher Tablets 45pk
Tesco Dishwasher Tablets 22pk
Comfort Tumble Dryer Sheets 20pk
Bounce Summer Meadow Tumble Dryer Sheets 25pk
White Tesco Luxury Soft Toilet tissue 4Roll pack
Peach Tesco Luxury Soft Toilet tissue 4Roll pack
Green Tesco Luxury Soft Toilet tissue 4Roll pack
Double Velvet Toilet Tissue 4Roll pack
White Tesco Luxury Soft Toilet tissue 9Roll pack
Tesco EcoSoft White Toilet tissue 2Roll pack
Tesco EcoSoft Peach Toilet tissue 2Roll pack

2. When will Tesco adopt consistant and universal unit pricing? For example, eggs are only occasionally unit priced.

3. When will Tesco genuinely encourage the consumer to help monitor the accuracy and legality of its pricing? (Superquinn reward the consumer with loyalty points for pointing out 'goofs')

4. When will Tesco to explain to consumers the reasons for the additional charges involved in pre-packaging vegetables, and clearly label those additional charges by unit pricing every pre-packaged item? Examples include:
3 pack of Class 2 onions = €1.59 (each pack is approx 800g) or €1.98 a kilo
Class 2 Onions loose = €1.49 a kilo. The pre-pack onions are 28% more expensive. However, the price per kilo is not displayed.
Tomatoes On The Vine pre-pack 450g €2.29 or €5.09 a kilo, Loose Vine Tomatoes are €2.99/kg. The pre-pack tomatoes are over €2 euro more expensive, almost 60% more than the loose item. The price per kilo is not displayed.
Baking Potatoes Tray 4 Pack €2.49 (~900g) works out at €2.76/kg. Potatoes Baking Loose (€1.69/kg). Again, the price per kilo is not displayed.

5. When will Tesco adopt a policy of NOT covering the shelf edge label with large special offer signs that contain no unit pricing at all? An illegal practice that you completely ignored in your response to my complaint.
6. When will Tesco adopt a policy of NOT stacking special offer products (for example cases of wine and beer) next to checkouts without clearly labeling the unit price as the law requires?
7. When will Tesco ensure that the pack price never appears in the unit price position on the shelf edge label. This practice gives the misleading impression that the pack-price is also the per kilo price. Again you have chosen to ignore my complaint about this in your response.
A company that turns over in excess of 41 billion euro a year should not have need to pay token lip-service to the law. I await a response from Tesco that truly address the issues that I have raised and outlines exactly the steps that are being taken to rectify the problems that I have highlighted with you and other members of Tesco staff. In the meantime I will continue to persue ongoing issues with my local store, Tesco head office, and with the OCDA. You have thanked me for taking the time and the trouble to point out these matters, yet not a single action or change has been promised by you on behalf of Tesco.
As you have been unable to satisfactorily answer my previous queries, I have also copied this mail to the Tesco CEO, Tesco's operations director, the ODCA and separately to the office of An Tanaiste. If you might know of anyone else that may be able to assist in this matter then perhaps you might direct this email to the appropriate person within Tesco, either in Ireland or the UK head office.

Every little helps.

MadsL

Sent to Mary Harney along with the reply above;


The Tanaiste said: "There has been widespread consultation with all trade representatives and retailers have known for some time that these changes were coming. We are giving them until 1 March to adapt their pricing systems to the new rules and I am satisfied that this is more than enough time. From that date onwards there will be no excuse for failing to comply with the rules. Consumers should be vigilant and where they notice that prices are not being displayed they should report this to the Director of Consumer Affairs." Mary Harney, DETE Press release Thursday 23nd January 2003


Tanaiste,

I recently raised the issue of the lack of unit price display on over 40 items in my local Tesco store and I received a rather lukewarm response (quoted below). I have already contacted the ODCA about these concerns but almost one month later, I have been unable to get a satisfactory response on progress other than 'the matter is being investigated' and a standard email response. I have been given the mobile number of the officer investigating, but this never seems to be turned on. My question is that if the ODCA are not prepared to promptly investigate (and prosecute where appropriate) the largest retailer in the country, then other retailers are unlikely to feel the requirement to comply with the law and where then do consumers turn if the law-enforcers are unwilling to act?

Tesco maintain that are acting inside the law and that the ODCA have given them the all-clear, the evidence that I can clearly see everytime I shop tells me that they are not complying with the regulations in force.

Also I note that the ODCA have a policy of not contacting a complainant to notify them of the outcome of their complaint. This hardly encourages the "Consumers should be vigilant" attitude when only an generic acknowledgement is the reward for any consumer taking the trouble to make a complaint. I would hope that you might revisit this policy and provide consumers with a detailed account of the outcome of their complaint.

Ivan

My, arent you the activitist?

I applaud your attention to detail but wonder exactly where you are going with this?

€3,800 fines are pittence to Tesco.

That said, dont let me stop you. I only wish I had the patience & drive to do something like this.

MadsL

€3,800 fines are pittence to Tesco.

True, but the bad publicity of getting busted costs them far more. I think most people still remember them getting busted in 1999 for overcharging. Not to mention the mice infestation in Stoneybatter.

In other areas of the economy massive profits are bringing calls for price reductions. Today's Irish times has a story about the insurance companies making €183 million profit and how motorist groups have called for a reduction in premiums.

Tesco turned over €41 billion last year, yes billion! of which €1.66 billion was Irish. To put that in context last year Irish people spent more in Tesco than Seamus Brennan will spend this year on the roads! (€1.658 billion)

Tesco will not release it's Irish profit figures, but it made €2 billion profit last year in the group as a whole. It grew underlying profit in Europe (excluding the UK) by 56% last year :eek:

My point is simple. Here is the law, and here is the largest retailer in the Republic breaking it. I have simply pointed that out to Tesco at a shelf-stacker, store office, assistant manager, manager and now head-office level. I have been ignored, argued with, told blatent lies to, and now patronised by Tesco head office.

Where am I going with this? That's up to Tesco I guess. I'll be happier if they comply with the law or are forced to by the ODCA. I find it pathetic that the ODCA so unwilling to bring prosecutions. Were I the head of the ODCA, after a month's notice to sort it out, I would petition the courts to fine for each individual offence. One pack of onions - no unit price is a €3000 fine, but Tesco have 77 stores €3000 times 77 equals €231,000. 40 items in each store is a potential fine of €9.24 million. Hardly a pittance.

dahamsta

Originally posted by MadsL
Not to mention the mice infestation in Stoneybatter.

There isn't really a place called Stoneybatter is there?

Well done Madsl. Corporations like Tesco shouldn't be allowed get away with even the littlest thing, because the sheer scale of their business multiplies the possible damage enormously. Keep at it, don't take no for an answer.

adam

nahdoic

Originally posted by dahamsta
There isn't really a place called Stoneybatter is there?

There sure is, very nice place too, but only in Dublin, nowhere else in the whole entire world.

stoneybatter

Gordon

Stoneybatter is also known as Luvvybatter due to the actors and actresses.

Well done Madsl, I particularly enjoyed this bit...

You state that Tesco checks over 270,000 prices each week. This is perhaps to be expected from Ireland's largest retailer. Personally as a citizen I comply with many laws on the statute, yet compliance with the majority of the law is no defence. If I break the law, I can expect to be penalised. How is Tesco any different? Tesco has been widely consulted on the implementation of these regulations, how then does Tesco have a difficulty in compliance?

jesus_thats_gre

You are mad!!!!!!

Victor

Originally posted by MadsL
You state that Tesco checks over 270,000 prices each week.

Eh, don't Tesco stock less than 10,000 items? And when they do heck them, do they fix the funny ones?

Originally posted by MadsL
1. When will .....
2. When will Tesco .....
3. When will Tesco .....
4. When will Tesco .....
5. When will Tesco .....
6. When will Tesco .....
7. When will Tesco .....

Either when they grow a pro-customer spine or when they are hurt in the pocket.

MadsL

or when they are hurt in the pocket.

Step forward Mary Harney...

dahamsta

Originally posted by MadsL
Step forward Mary Harney...

You're thinking /between/ the pockets now Madsl.

adam

Victor

Originally posted by MadsL
Step forward Mary Harney...

"Everything from washing machines, furniture and carpets to a loaf of bread must be clearly priced" - Harney
"These rules will be enforced. Stiff penalties will apply for non-compliance" - Tánaiste - 23nd(sic) January 2003

How about writing to teh PDs simply stating that she is being made look like a gobsh*te.

spongebob

as I said b 4 well done Madsl

Shane Coleman in the Sunday Tribune is getting into Ireland of the Ripoff spotting, Tesco are not a big advertiser in the Tribune.

the ongoing indifference of Mary Harney would be a story IMO especially if she waddles off to borrow a tax dodgers villa for the whole of August like she usually does.

ask editorial@tribune.ie for his email address. Give her hell.

M

MadsL

You're thinking /between/ the pockets now

LOL...

We'll see what happens when Mary gets back from her holliers.

l3rian

Well done MadsL

slave1

Excellent MadsL

To make you feel better, I had a smile on my face on Saturday leaving Tesco
Those multi packs of fresh chicken breasts were reduced to sommit like 10.99 but I was charged 15.99
Tesco have their no quibble policy if overcharged so I went back t o the floor and bought two more packs - seperate transaction.
Then up to the counter to get my 3 times 15.99 back.
Assistant was a bit put out that I just didn't point out the overcharge off my first transaction and leave it at that.
Just asked for my money back and got it.

Thinking back there was good few more packs in the store, if I had room in the freezer I would have stock up for free.

Still, free chicken for my crew for a while - tastes sweeter.

Wook

Originally posted by jesus_thats_gre
You are mad!!!!!!

I am glad you changed your mind aboud 'Mad', your previous postings weren't that let's say 'motivating'.

Borzoi

Originally posted by slave1
Excellent MadsL

To make you feel better, I had a smile on my face on Saturday leaving Tesco
Those multi packs of fresh chicken breasts were reduced to sommit like 10.99 but I was charged 15.99
Tesco have their no quibble policy if overcharged so I went back t o the floor and bought two more packs - seperate transaction.
Then up to the counter to get my 3 times 15.99 back.
Assistant was a bit put out that I just didn't point out the overcharge off my first transaction and leave it at that.
Just asked for my money back and got it.

Thinking back there was good few more packs in the store, if I had room in the freezer I would have stock up for free.

Still, free chicken for my crew for a while - tastes sweeter.

Absolute class.:D

What store BTW, as 'i feel like free chiken tonite'

slave1

Borzoi

It was in Athlone, but they sent a guy onto the floor to sort out the price mistake so I doubt very much there'll be free BBQ chickens on midland spits this evening

Maybe the moral is that when you spot an error, go back onto the floor and buy some more to teach them a lesson

I'm sure many people got overcharged and didn't notice

I'ts happened to me a couple of times so I always check those 'reduced', 'special offers' that the price is right

patch

Originally posted by slave1
Excellent MadsL

To make you feel better, I had a smile on my face on Saturday leaving Tesco
Those multi packs of fresh chicken breasts were reduced to sommit like 10.99 but I was charged 15.99
Tesco have their no quibble policy if overcharged so I went back t o the floor and bought two more packs - seperate transaction.
Then up to the counter to get my 3 times 15.99 back.
Assistant was a bit put out that I just didn't point out the overcharge off my first transaction and leave it at that.
Just asked for my money back and got it.

Thinking back there was good few more packs in the store, if I had room in the freezer I would have stock up for free.

Still, free chicken for my crew for a while - tastes sweeter.

Brilliant......I wasn't aware that could be done! I'll be watching out for my chance to try it out.......

daveg

Fair fúcks to you MadsL. I think taking the chicken for free would be as far as would go. Shame more of us wern#t as motivated as you. Perpahs we wouldn't be ripped off as much in this country.

MadsL

Anyone know where Mary Harney is at the moment? I just got a mail from her Private Secretary. Looks like Mary doesn't take her staff on holiday!~!

patch

I was in Tesco in Galway yesterday. I was at the customer service till. A lady was buying some magazine, which the teller was scanning in, she noticed it was scanning at 50 cents more than it cost.They cost 4.70 or so.

I was VERY tempted to go down and buy four or five of them, so I could make myself 20 quid. I didn't do it, as I would have been blatantly obvious.
Next time........

slave1

Not that I have anything against Tesco in particular but it's the where I do my shopping so......

Last week they had a big SPECIAL OFFER 33% OFF posters all around their red meat section.
I always get their €2.99 pack of round steak minced for the ole reliable spaggetti bol.
Anyhow, they increased the price of the meat I get to €3.99, and the 33% reduction was made off this price, which equates to a net price to me of about €2.63 - or 12% reduction on old price.
Right says me, think I'll buy a couple and shove them in the freezer seeing as the price is going up - 2.99 to 3.99.
Anyhow, in Tesco last night to pick up a few bits n bobs.
The meat is back to its old 2.99 a pack.
I don't know the legal side around special offers, but Tesco fell a lot in my view over this.
Very sneaky - yes they did have a "special" offer - but big difference between 12% and 33%
Sneaky sneaky.
Does anyone know if this was illegal??

nahdoic

I remember studying this in school, a shop has to have an item for sale and on display for a certain period of time (something like at least 45 days) before they can say they have reduced the price.

It is there to prevent this exact sort of behaviour, increasing the price and then claiming to be giving a big discount.

So yes this is breaking one of the consumer acts.

Victor

MadsL, I had a chat with one of the "managers" (in Upper Baggot Street) the other night .. he couldn't look me in the eye, when I complained about the beer & wine prices and denied he didn't know such pricing was illegal.

Originally posted by nahdoic
I remember studying this in school, a shop has to have an item for sale and on display for a certain period of time (something like at least 45 days) before they can say they have reduced the price.

i'm not sure if it's as long as 45 days (21 rings a bell), but yes this does appear to be illegal.

gombín

MadsL,

Your dilligence is to be commended. If half the populace were as consumer-consious as yourself, we would never have this rampant rip-off culture in Ireland (and no, I'm not sticking up for Harney .;) .

MadsL

Dear **********

Further to my recent acknowledgement, please find below my response to the points you raised in your email of the 6th of August.

In relation to a number of your concerns, I would like to assure you that we are currently in discussion with the Office of the Director of Consumer Affairs seeking clarification on a number of points that you raised. I can assure you that we at all times strive to operate our business with due regard to all relevant legislation.

Our special offer shelf edge labels are in specially designed holders that flip up to allow customers to view any labels underneath. Our policy indicates that wherever possible specical offer shelf-talkers do not cover any other consumer information.

We are aware that any special offers stock should have a shelf edge label that displays the unit prices, we appreciate your comments.

Our shelf edge labels are designed to display the product price on the upper left-hand portion of the label with the unit price below the product price.

Let me assure you that we have a procedure in store to capture all customer queries whether it is related to price, product or service. All customer feedback is reviewed so that we may improve the range and quality of our goods at the keenest prices.

We would like to thank you for your interest and sharing your research, I do hope that we can look forward to being of continued service to you in our stores in the very near future.

dahamsta

Originally posted by MadsL
We would like to thank you for your interest and sharing your research, I do hope that we can look forward to being of continued service to you in our stores in the very near future.

Heh, what are the odds that while the person was writing that, they were thinking: "Go away, go away, you're making my life miserable!"

adam

Victor

Are they banned from alcohol special offers from next week with the new legislation?

Originally posted by MadsL
Let me assure you that we have a procedure in store to capture all customer queries whether it is related to price, product or service.

It reads something like this: "deny anything is wrong. If the pleb^H^H^H^H customer persists, tell them to contact head office."

Victor

Oh, I worked out how some of Tesco's pricing works. Tehy appear to have a single price database in Head Office (Dun Laoghaire?), however, depending on the market (say Merrion Road -v- Finglas) they stock different products. For example Finglas would get more KVI (Key Value Items) brand items while Merrion Road would have more Tesco premium brand and own brand products.

Tesco "Kerry" water 2 Litres - €1.32
Tesco KVI white lemonade 2 Litres - €0.35