Investigation into Misleading Loyalty Deals at Boots and Superdrug

A recent analysis by Which? has revealed that both Boots and Superdrug may be misleading customers through their loyalty deals. The investigation assessed over 7,000 online loyalty promotions and found that a significant number of these deals do not provide the savings they appear to offer. The consumer watchdog is now urging the Competition and Markets Authority (CMA) to conduct a formal investigation into these practices.

Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’

The study focused on 690 loyalty deals at Boots and 6,342 at Superdrug, examining the pricing structure before, during, and after promotions. At Boots, 17% of the loyalty deals were flagged as potentially misleading. For instance, the Avène XeraCalm A.D. Lipid-Replenishing Cream was priced at £16.50 for loyalty members, while the non-member price was £22. However, the product was available for £17.60 just before and after the loyalty promotion, raising concerns about the legitimacy of the advertised savings.

Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’

In contrast, Superdrug had a lower percentage of misleading deals, with only 3% (162 deals) identified. One example included an Oral-B electric toothbrush priced at £34.99 for loyalty members, while the non-member price was £69.99. However, the price for all customers before and after the promotion was £34.99, suggesting the higher non-member price may have been artificially inflated.

Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'

The CMA's guidelines indicate that loyalty promotions can be problematic when the non-loyalty price is higher during the promotion than the selling price before and after it. Which? found that 8% of deals at Boots and 7% at Superdrug also fell into this category, necessitating a closer examination of individual cases to determine if they are genuinely misleading.

Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'

In response to the findings, Boots emphasized its commitment to providing value and transparency for customers. A spokesperson stated, "We strive to deliver great value for money for our customers every day," and noted that they are aligning their promotions with CMA guidance. Similarly, Superdrug highlighted its efforts to offer competitive pricing and rewards for loyalty members, asserting that they aim to ensure clarity and fairness in their pricing strategies.

Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’

Consumer advocates have expressed concern over the pricing tactics employed by both retailers. Sue Davies, Head of Consumer Protection Policy at Which?, criticized Boots and Superdrug for potentially misleading their customers. She stated, "It's concerning that Boots' rival Superdrug seems to be employing similar dodgy-looking pricing tactics," urging the CMA to take action against such practices to protect consumers.

Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'

The findings from Which? raise significant questions about the integrity of loyalty promotions at Boots and Superdrug. As the consumer watchdog calls for an investigation, the outcome could lead to stricter regulations on loyalty pricing practices in the retail sector, ensuring that consumers can trust the deals being offered.

Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'

• “Head of Consumer Protection Policy, said: 'Boots was a loyalty scheme pioneer with its Advantage card, but the retailer seems to be taking its customers for a ride by making some of its deals look better than they really are.” — Sue Davies, Head of Consumer Protection Policy, Which?

Consumer watchdog claims Boots and Superdrug have misled customers with hundreds of loyalty card 'deals'

• “A Boots spokesperson said: 'At Boots we strive to deliver great value for money for our customers every day.” — Boots Spokesperson

Hundreds of loyalty deals at Boots and Superdrug ‘risk being misleading’