Chemist Warehouse, Priceline and Terry White overstating discounts that confuse shoppers: Choice

Major pharmacies Chemist Warehouse, Priceline and Terry White are engaging in pricing tactics that make it hard for shoppers to tell if they are getting bang for their buck, fresh analysis by consumer group Choice has found.

With big supermarkets already under increased public and political scrutiny over pricing practices, Choice has revealed around one in three consumers found it difficult to gauge if colourful promotional tags at the major pharmacies represented a discount.

For example, shoppers were shown a promotional tag accompanying a Colgate toothpaste at a Terry White store. The tag listed the product’s $6 price as a discount from its recommended retail price of $11.99.

As many as 71 per cent of respondents believed they were getting a $6 discount but when asked, Terry White confirmed the toothpaste had never been sold at that $11.99 price, instead the usual shelf price was $8.99.

“Our new research has found that those yellow and pink sales tags consumers are often bombarded with in pharmacy aisles are highly confusing,” Choice senior campaigns and policy advisor Bea Sherwood said.

“If the pharmacies have never offered those products at that RRP, consumers may be misled about how much they’re really saving, making it harder for people to get the best value.”

Priceline has also told Choice its use of a “great value” tag on a $16.99 lip balm did not represent a discount.

While the label technically doesn’t claim to offer a discount, the use of the pink-coloured “great value” tag may cause consumers to believe the item is on sale, Choice said.

A Priceline spokeswoman said the “great value” pink ticket did not indicate a discount, but instead highlighted products featured in its fortnightly catalogue at everyday low prices that offer great value.

“Priceline Pharmacy provides value to its customers in a variety of ways including discounts in catalogue, reduced prices on items for a prolonged period, gift with purchases, loyalty club benefits and complimentary in-store services like free health checks,” she said.

The consumer group said it was concerned about the lack of transparency on pharmacy labels — particularly the use of RRP — which may result in shoppers overestimating the value of the deal on offer.

“There has been a race to the bottom on these tactics, which makes it hard for businesses using transparent pricing to compete,” Ms Sherwood said.

Chemist Warehouse declined to comment.