Local Cllr believes that the Government should ban use of loyalty cards

A SUGGESTION by Meath County Council Cllr Trevor Golden that the Government should ban the practice of dual/discriminatory pricing of goods, especially supermarkets operating membership schemes through rewards or club cards has not met with the approval of the Minister for Enterprise, Trade and Employment who said a ban on loyalty schemes might be considered unlawful under European law.

The independent councillor had told a meeting of the county council that rewards or club cards in loyalty schemes was “a coercive practice that unfairly discriminates between one kind of consumer and another”.

Cllr Golden and independent Cllr Gillian Toole claimed that the reward cards placed an “extra rigidity” on the sale of goods.

Minister Simon Coveney replied to the council saying that his officials contacted the Competition and Consumer Protection Commission which advised that Irish consumer protection laws required businesses to clearly display the selling price of every item offered for sale and they should make it clear what particular item the price relates to.

Further regulations introduced last November aimed to end the practice of raising product prices immediately prior to a sale in order to advertise misleadingly large discounts.

Mr Coveney said that analysis had shown that market concentration in the grocery retail sector had reduced and competition on price, quality, location and service had improved. This had resulted in more choice for consumers and they could easily switch between competitors.

Introducing price controls (such as banning specific pricing practices) could have significant long-term effects on the economy including on competition and consumer welfare.