SINGAPORE: Major Supermarkets to Launch Unit Pricing Pilot Program

In a significant move aimed at enhancing price transparency for consumers, major supermarkets across Singapore, including renowned operators like NTUC FairPrice, Cold Storage, Giant, Sheng Siong, and Prime, are set to initiate a pilot program displaying unit prices for a variety of grocery items. This scheme will cover essential products such as rice, meat, eggs, cooking oils, fruits, and vegetables.

Starting soon at select outlets, this initiative will allow customers to view additional pricing information in the form of unit prices—such as price per litre or price per kilogram—alongside the standard product prices. Trade and Industry Minister Gan Kim Yong, who announced this innovative pilot scheme at the Consumer Association of Singapore’s (CASE) partners' appreciation dinner, emphasized its role in guiding consumers towards more informed purchasing decisions.

"This will provide consumers with relative price information to guide their purchasing decisions," Mr. Gan stated. The initiative is a collaborative effort between CASE and the Competition and Consumer Commission of Singapore (CCCS), who will also conduct a market survey to assess consumer responses to this pricing display. The results are expected to shape future guidelines and broader implementations of unit pricing.

The primary aim of this new approach to pricing is to enhance price transparency, empower consumers in making cost-effective choices, and discourage retail pricing gimmicks. Minister Gan highlighted the success of CASE's Price Kaki app, which introduced unit pricing for over 1,200 grocery products two years ago. Since then, this figure has increased to over 6,000 items, underscoring a growing demand for clarity in pricing. The app has seen widespread adoption, amassing over 170,000 downloads, further proving its effectiveness as a consumer tool.

Advocacy for Mandatory Unit Pricing

CASE president Melvin Yong has advocated for mandatory unit pricing, noting that it would provide an easier way for consumers to "see through pricing gimmicks quickly and easily." This initiative also aims to combat the growing concern of shrinkflation—the practice where product sizes are reduced while prices remain the same.

Consumer Protection Review Panel

In tandem with the new pricing strategy, Mr. Gan unveiled a consumer protection review panel tasked with addressing key consumer concerns within Singapore's evolving marketplace. This panel will delve into pressing issues including prepayment losses, challenges in online commerce, and the prevalence of aggressive sales tactics. The increase in reported prepayment losses—soaring fourfold last year to reach S$1.93 million—highlights an urgent need for protective measures, especially in sectors such as beauty, renovation, and fitness, where such incidents have become more common.

To bolster consumer confidence, CASE has announced plans to increase the number of CaseTrust-accredited renovation contractors to 500 over the next three years, providing customers with greater assurances. To facilitate this accreditation process, CASE will subsidize up to 80% of the associated costs.

Addressing E-Commerce Complaints

As e-commerce complaints rise, now comprising approximately 33% of total consumer grievances received, the panel is also focused on enhancing consumer rights regarding order fulfillment, delivery, and product quality issues.

Mr. Gan affirmed that the panel’s insights will be grounded in international trends and best practices, aimed at empowering consumers, elevating industry standards, and fortifying regulatory measures to adapt to Singapore's unique market context.

With these initiatives underway, Singapore is poised to usher in a new era of consumer empowerment and protection—stay tuned to see how these changes might transform your grocery shopping experience!