Eight UK supermarkets, including Tesco and Sainsbury's, have agreed to a new code set by the Office of Fair Trading (OFT) to ensure that special offers and discounts remain fair.

The watchdog had raised concerns that British retailers were artificially inflating prices in order to make discounts seem more substantial, and all eight supermarkets - Tesco, Sainsbury's, Morrisons, Waitrose, Marks and Spencer, Aldi, the Co-op and Lidl - have agreed to adopt a new set of principles.

The news is expected to be embraced by the fresh produce industry with concerns over promotions on fruit and vegetables prominent among growers and producers alike.

Douglas Scott, director of Scotland-based soft fruit supplier Graham Nicol & Dow, told the FPJ that 'phoney discounts' had hindered growers and producers throughout this season's poor weather.

He said: 'When supermarkets can't move soft fruit because of the poor weather, shouldn't they do a proper promotion rather than continuing five-month-old deals?

'There needs to be a partnership in place with supermarkets to negotiate better prices for growers.'

Around 40 per cent of fast-moving consumer goods are currently part of a promotion or discount according to the OFT, and groceries are estimated to account for 44 per cent of household spending.

'Household budgets across the country are under pressure and shoppers should be able to trust that special offers and promotions really are bargains; prices and promotions need to be fair and meaningful so shoppers can make the right decisions,' said Clive Maxwell, chief executive of the OFT.

Maxwell is keen to stress that while no supermarkets have been found guilty of breaking the law, the new code will add a more consistent approach to discounts throughout the retail sector.

The new principles include rules that 'half price' or 'was £3, now £2' offers must be sold at the new discounted price for the same, or less, time than the previously higher price in order to prevent short-term, artificial prices that mask the offer.

Furthermore, items that are advertised as being of a 'better value' due to a bigger pack size must have a comparable product elsewhere in the store.

Retail reaction

Despite widespread support from retailers, Asda has still not signed up and announced it was still 'considering' the code.

In a statement, Asda argued that as it already keeps prices for customers 'as low as possible on a weekly basis,' a code covering special offer price promotions was not relevant for the retailer.

Meanwhile, Sainsbury's and Marks and Spencer both released statements praising the code, with M&S stating that it was 'the right time' for the regulations to be introduced.

A spokesperson for the Co-operative told the FPJ: 'We understand how important it is for shoppers to be able to easily understand what the promotional offer is, so they can spot the best deal, and we are committed to providing clear and accurate labelling for our customers so they can make informed purchasing decisions.'

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