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Tesco and the Law

September 30 2001 at 10:19 PM
BWMA 

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According to the Official Journal of the European Commission, the following question was put to the EC on January 17th 2001:

"EU legislation regarding the use of metric units came into force in the UK in 2000. However, many major supermarkets in the UK have either ignored using metric weights on their labels or display the price per pound much more prominently than the price per kg, which contradicts the Directive's requirements.

What plans does the Commission have to ensure that this Directive is fully implemented in the UK?"

On March 7th, 2001 the EC replied as follows:

"The matter to which the honourable member refers is the subject of a complaint that has been made to the Commission. An investigation is currently under way with regard to the Member State involved in order to obtain the necessary facts concerning the matter that has been reported. If necessary, the Commission will not hesitate to take appropriate action in accordance with the procedure laid down in Article 226 of the Treaty".

 
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AuthorReply
BWMA

Letter from Somerset Trading Standards - Sept 10th 2001

September 30 2001, 10:31 PM 

The following letter was written by Howard Burnett, Chief Inspector of Weights & Measures at Somerset Trading Standards, to a BWMA member in response to a question on Tesco displaying lb/oz. The letter is dated September 10th, 2001.

"...there is continuing discussion on this matter and how best to progress the issue. Since writing to Tesco I have received a response indicating that they have considered the requirements of the Price Marking Order and are of the opinion that they are meeting them.

There has been considerable discussion involving the Trading Standards Institute, the Local Authorities Body Co-ordinating Trading Standards (LACOTS) and the Department of Trade & Industry (DTI). It is not clear how to apply the current legislation to the Tesco sign situation in particular there are various interpretations of "selling price" and the applicability of the Weights & Measures Act 1963.

LACOTS are having discussions with the DTI on this and the best way to clarify the legal position for trade and enforcement. We are awating the outcome of their discussions before deciding on the action to take. Once this is clear I will let you know".

 
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BWMA

Letter to Tesco

September 30 2001, 10:40 PM 


The following letter has been written by the BWMA meber referred to above to the Chief Executive of Tesco, Terry Leahy, dated September 30th, 2001:

"Thank you for your letter of March 21, 2001. Could you clarify for me your statement, "Our opinion on this matter has been made clear to all concerned". I understand from Somerset's Chief Inspector of Weights & Measures that you have not offered him a Legal Opinion as to why you consider Tesco's actions within the law. Consequently, he is unable to answer my questions concerning Tesco's actions.

I further understand Cornwall County Council Trading Standards consider that Tesco's point of sale signs appear to be in breach of the Prominence requirement for metric units under the Price Marking Order 1999.

It would be very helpful if Tesco could inform all those concerned, including myself, of the Legal Opinion from Tesco's lawyers. The present situation does give the impression that there is one law for the powerful supermarkets and another one for the small trader. I am sure Tesco does not wish to perpetuate this impression".

This thread will be updated with Tesco's response in due course.

 
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BWMA

The DTI's view regarding Tesco - October 4th, 2001

October 4 2001, 7:52 PM 


The following letter has been sent from the Department if Trade and Industry to a BWMA member:

"Further to our telephone conversation this morning, about in-store signs that display the price per pound in characters larger than the price per kilogram or without an indication of the price per kilogram. I can confirm that it is the Department of Trade and Industry's view that such signs are contrary to section 8 of the Weights and Measures Act 1985, as amended in 1994.

I am aware that a number of local authorities have expressed concern to Tesco about the company's in-store signs, and that discussions have focussed on possible breaches of the Price Marking Order 1999. The local authorities have an independent statutory responsibility to enforce price marking and weights and measures legislation. Each authority must make its own judgement on securing compliance with the law, based on the facts of each case".

 
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BWMA

Complaint to Trading Standards regarding Tesco

November 8 2001, 8:02 PM 

The above BWMA member has submitted the following complaint to Trading Standards about their failure to tackle Tesco:

Thank you for your letter of October 18, 2001 and I appreciate the early reply. It has been made clear to me both verbally and in writing by both Somerset and Cornwall Trading Standards, and the Department of Trade & Industry that, as the Home Authority, Hertfordshire Trading Standards is ultimately responsible for Tesco.

Regarding consumer detriment, no government or consumer group thought it necessary to ask the British public as to whether they wanted compulsory metrication. Since 2000, many manufacturers of packed goods have used metric-only markings to downsize their contents while maintaining the same price. The silence from the DTI and trading standards to this practice has been deafening. Every independent survey carried out has shown that the British public prefer customary measure. This concern for "consumer detriment" is a little late!

By allowing Tesco to use point of sale marking in Imperial, Hertfordshire Trading Standards are putting many small traders, who are sticking to the letter of the law for fear of prosecution, at a disadvantage.

For reasons stated in Mr Gareth Harper's e-mail and the above reason, this letter can be considered as a formal complaint against Tesco and I look forward to hearing what action you intend to take.

 
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tesco & the law

December 11 2001, 10:37 PM 

further to the letter asking Hertford Trading Standards what action they intend to take regarding Tesco, they replied with a pre-printed postcard stating that they did not plan to take further action.
Incidentally, Tesco have appointed two of Blair's political advisors to their staff. Mr. Philip Gould who will reorganize publicity, media and lobbying and Mr. David North now Tescoo's director of government affairs. This info appeared in the Independent 9.12.01. All very cosy

 
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Anonymous

Letter to Hertfordshire TSO Feb 4, 2002

February 3 2002, 4:28 PM 


Dear Mr. McLachlan
Further to your letter of October 18, 2002 and in view of Mr. Gareth Harper's e-mail concerning Tesco (a copy of which is in your possession), please can you give me Hertfordshire Trading Standards legal definition as to why they consider Tesco is not breaking the law?
Yours sincerely, etc

 
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BWMA

Letter to Somerset Trading Standards, Feb 4, 2002

February 3 2002, 4:30 PM 

Dear Mr. Clarke

TESCO Signage

I understand from Mr. Neil Herron of the Metric Martyrs Campaign that it is your belief that all applicable businesses in Somerset are acting within the letter of the law regarding the labelling of goods under the 1999 Price Marking Order.

I enclose a copy of an e-mail from the Department of Trade & Industry concerning Tesco's Imperial only point-of-sale signs which is self explanatory.

Please can you give me Somerset Trading Standards' legal definition as to why they consider Tesco is not breaking the law?
Yours sincerely, etc

 
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BWMA

DTI email

February 3 2002, 4:33 PM 

Question: is Graham Harper's email referred to above the same as that mentioned in the October 4th entry, or is it a new communication?
If new, please place a copy on this forum.
Thank you.

 
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Anonymous

Tesco and DTI E-mail

February 10 2002, 8:41 PM 

the e-mail mentioned is the one dated october 4 to Gareth Harper of the DTI

 
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vicki

tesco

April 14 2002, 1:10 PM 

Some pieces of correspondence have not been put on the site. This is now being rectified. Apologies for the inconvenienced caused!

e-mail from Gareth Harper Dept. Trade & Industry sent October 4, 2001.

Further to our telephone conversation this morning, about in-store signs that dislay the price per pound in characters larger than the price per kilo or without an indication of the price per kilo. I can confirm that it is the DTI's view that such signs are contrary to section 8 of the Weights & Measures Act 1985 as amended 1994.

I am aware that a number of local authorities have expressed concern to Tesco and the company's in-store signs, and that discussins have focussed on possible breaches ofthe Price Marking Order 1999. The local authorities have an independent statutory responsibility to enforce price marking and weights and measures legislation. Each authority must make its own judgement on securing compliance with the law, based on the facts of each case.

 
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vicki

tesco

April 14 2002, 1:32 PM 

This letter was sent to Hertford Trading Standards spprox between Oct 5 - 15, 2001
Re: TESCO - Point of Sale Notices in Imperial Measure

Further to correspondence with Mr. Howard Burnett, Chief Inspector of Weights & Measures for Somerset concerning the above company, I have now received the enclosed e-mail from the Department of Trade & Industry which confirms that the DTI regard these signs as being contary to Section 8 of the Weights & Measures Act l985 as amended in 1994.

I understand that Hertfordshire, as the Home Authority, is responsible for TESCO. I also understand that there is an enforcement concordat which advises companies when they are breaking the law.
Every effort is then made to persuade them to compliance within the law without the redress of the courts.

As TESCO announced their intention to use point of sale Imperial notices over a year ago and, as Mr.Leahy, chief executive of TESCO has confirmed that there has been correspondence with Hertford Trading Standards, it is reasonable to assume that every effort has been made to persuade TESCO to comply with the law.

I understand the next step will be the issue of a formal caution. Will Hertfordshire Trading Standards be issuing such a caution? Should a caution be issued and ignored by TESCO what then will the strategy of Hertfordshire Trading Standards? What will be the timescale in dealing with TESCO? What would be the reason for not issuing a caution, especially in view of the DTI's opinion? I should be grateful if you could treat the answer to my letter as a matter of urgency.

Yours sincerely,

 
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vicki

Tesco

April 14 2002, 4:56 PM 

Letter from Hertfordshire Trading Standards dated l8.10.01
Thank you for your letter which enclosed a copy of Gareth Harper's e-mail. I am well aware of the DTI's viewpoint.

You are correct in assuming that, as Home Authority, we have had numerous discussions with Tesco on the legality of their point of sale material. Tesco are adament that they are not committing any offence, especially as all sales and shelf edge price indications are in metric.

As Mr Harper points out in his e-mail, a number of authorities have expressed concern, but to date, none have decided to pursue court action. I am aware of one Scottish authority that presented a report to the procurator fiscal, but that did not result in court action. There may be another Scots authority about to embark on the same route. Of course, any local trading standards authority could choose to take action, but as Mr.Harper points out, it would be based on the facts of each case. Have you, for example made a formal complaint to Somerset and offered to make a statement claiming consumer dedtriment?

Your last paragraph poses a number of questions, most of which are based on the assumption that any action is a matter for this authority. As mentioned above, any authority can take action, and we would be prepared to make statements concerning advice given to Tesco, by this department. The issue of a formal caution would only be an option if an authority had sufficient evidence to consider court action.

Anyone considering court actiion will take account of several factors, including public interest, whether fraud is involved, the previous behavior of the defendant, the likelihood of conviction and penalties, and the amount of time to bring the matter to court.

I can confirm that this authority has no current plans to pursue Tesco on this matter, although we will continue to raise the concerns of colleagues, and bring to their attention any fresh advice or opinions of the legal position.

 
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vicki

tesco

April 14 2002, 5:22 PM 




Original Message Tesco
vicki
Posted Apr 14, 2002 4:56 PM

Letter from Hertfordshire Trading Standards dated l8.10.01
Thank you for your letter which enclosed a copy of Gareth Harper's e-mail. I am well aware of the DTI's viewpoint.

You are correct in assuming that, as Home Authority, we have had numerous discussions with Tesco on the legality of their point of sale material. Tesco are adament that they are not committing any offence, especially as all sales and shelf edge price indications are in metric.

As Mr Harper points out in his e-mail, a number of authorities have expressed concern, but to date, none have decided to pursue court action. I am aware of one Scottish authority that presented a report to the procurator fiscal, but that did not result in court action. There may be another Scots authority about to embark on the same route. Of course, any local trading standards authority could choose to take action, but as Mr.Harper points out, it would be based on the facts of each case. Have you, for example made a formal complaint to Somerset and offered to make a statement claiming consumer dedtriment?

Your last paragraph poses a number of questions, most of which are based on the assumption that any action is a matter for this authority. As mentioned above, any authority can take action, and we would be prepared to make statements concerning advice given to Tesco, by this department. The issue of a formal caution would only be an option if an authority had sufficient evidence to consider court action.

Anyone considering court actiion will take account of several factors, including public interest, whether fraud is involved, the previous behavior of the defendant, the likelihood of conviction and penalties, and the amount of time to bring the matter to court.

I can confirm that this authority has no current plans to pursue Tesco on this matter, although we will continue to raise the concerns of colleagues, and bring to their attention any fresh advice or opinions of the legal position.













 
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vicki

tesco

April 14 2002, 5:41 PM 

letter sent aprox October 20 - 31, 2001

Thank you for your letter of October 18, 2001 and I appreciate the early reply. It has been made clear to me both verbally and in writing by both Somerset and Cornwall Trading Standards and the DTI that, as the Home Authority, Hertfordshire Trading Standards is ultimately responsible for Tesco.

Regarding consumer detriment, no government or consumer group thought it necessary to ask the British public as to whether they wanted compulsary metrication. Since 2000, many manufacturers of packed goods have used metric-only markings to downsize their contents while maintaining the same price. The silence from the DTI and trading standards to this practice has been deafening. Every independent survey carried out has shown that the British public prefer customary measure. This concern for "consumer detriment" is a little late!

By allowing Tesco to use point of sale marking in Imperial, Hertfordshire Trading Standards are putting many small traders, who are sticking to the letter of the law for fear of prosecution, at a disadvantage.

For reasons stated in Mr. Gareth Harper's e-mail and the above reason, this letter can be considered as a formal complaint against Tesco and I look forward to hearing what action you intend to take.

 
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vicki

tesco

April 14 2002, 5:46 PM 

Letter dated 4 Feb 2002 to Hertfordshire Trading Standards

Further to your letter of October l8, 2001 and in view of Mr. Gareth Harper's e-mail concerning Tesco (a copy of which is in your possession) please can you give me Hertfordshire Trading Standards legal definition as to why they consider Tesco is not breaking the law.

 
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vicki

tesco

April 15 2002, 8:01 PM 

letter from Hertfordshire Trading Standards in reply to letter dated 4.2.2.

Thank you for your recent letter on the above subject
which asks why we consider Tesco is not breaking the law.

I find it difficult to add anything to my letter of the 18 October. There are differing opinions on the legality of Tesco signage, and there may well be offences against the Price Marking Order and the Weights and Measures Act. This could depend on the positioning of the notices and any price indications that are present which comply with the order. Ultimately it is for a court to decide on the facts placed before it.

I am not aware of any authority pursuing court action since my last letter, although as both myself and Mr. Harper have pointed out, any enforcement authority can do just that. The Hertfordshire position is unchanged.

 
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vicki

tesco

April 15 2002, 8:20 PM 

letter dated 2.3.2. to Hertfordshire Trading Standards

Thank you for your letter of February 12, 2002. In your second paragraph you state that Tesco may well be commiting offences against the Price Marking Order and the Weights and Measures Act, which could depend on the positioning of the notices and price indications.

Can you explain to me clearly, based on the Price Marking Order and the Weights and Measures Act, why Hertfordshire Trading Standards considers that Tesco is not breaking the law quoting necessary section from the appropriate legislation backing up Hertford's argument?

Whilst going through my correspondence I note a letter from Somerset Trading Stnadards stating that Hertfordshire Trading Standards had notified them (Somerset) that Tesco had been informed that signs displaying unit price alone do not comply with the Order and that Lacots were of the same opinion.

This would indicate that Hertfordshire Trading Standards is unsure of the law. It is reasonable that a test case is brought before the courts to decide the legality of Tesco's action. I look forward to an early reply.

 
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vicki

tesco and hertford trading standards

April 16 2002, 7:58 PM 

Letter from Hertfordshire Trading standards dated 14 March 2002.

I refer to your most recent letter, in which you continue to insist on interpreting my comments as saying Tesco are not breaking the law. As you have our correspondence at your disposal, may I invite you to revisit the letter I sent you on October 18, which sets out the factors that any authority would consider before court action. I also inferred in that letter that we disagreed with Tesco's interpretation of the law, as do Lacots, and I confirm that fact. I also stand by the comments in the second paragraph of my letter of the 12 February.

Ultimately it is for a court to decide, in all the circumstances, whether Tesco have committed an offence and as I have said before, any authority can take action.

The relevant points for consideration are to be found in the Price Marking Order 1999, especially regulations 1, 4, 5 and 7, and the Weights and Measures Act, l985 Section 8. Any debate would centre on whether the display poster carrying imperial only is an advertisemnt and whether it is "in use for trade".

I do not propose to rehearse the various arguments here, but you may wish to discuss the detail with your local office.

I reiterate that Hertfordshire's position is unchanged and I now conisder this correspondence closed.

I phoned up Hertfordshire Trading Standards and said I did not consider the matter closed. That is the Tesco correspondence with Hertford up-to-date.

Thats


 
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vicki

tescoTESCO SIGNAGE

April 21 2002, 8:12 PM 


 
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vicki

Tesco signage

June 30 2002, 6:46 PM 

Letter to Mr.N. Cull Executive Director of LACOTS
sent April 15, 2002

In Tesco's I have observed various signs and posters which are in Imperial measure only. I understand this practice is illegal. I wrote Tesco concerning their markings and, to quote a letter dated 14 December 2000 from the Chief Executive, the then Mr. (now Sir) Terry Leahy "We have re-introduced price per lbs on product packs, Imperial weights will be enlarged on shelf edge labels and metric will be dropped from point of sale material". He further claims Tesco's posters and point of sale labels are legal.

I enclose correspondence from the DTI and various trading standards authorities who do not agree with Sir Terry's legal opinion. Mr. Ian McLachlan, Hertfordshire Trading Standards (Tesco's Home Authority) in his letter of February 12, 2002 states "ultimately, it is for a court to decide on the facts placed before it." Yet neither Hertford, or any other trading standards authority appear willing to bring a test case.

A test case would not only clarify the situation but would mean that many small traders who are sticking to the letter of the law for fear of prosecution are being put at a disadvantage.

I find it hard to understand how it is that Trading Standards in general have a perfect knowledge of the minutae of Weights and Measures legislation when dealing with the small trader but appear unsure when dealing with a supermarket as powerful as Tesco - not only for its premier place in the market but for its close links with the Government.

Please can you inform whether a test case will be brought before the courts. If the answer is in the negative, please can you give reasons other than "consumer detriment" or the costs of bringing a court case. Compulsary metrication never appeared in any manifesto and the cost did not stop Sunderland Council for sanctioning a prosecution.

 
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vicki

tesco & the law

July 13 2002, 7:58 PM 

letter to Mr. Nick Cull, Esecutive Director LACOTS dated May 13, 2002 headed TESCO signage

Whilst checking through my correspondence, I note that I have not received a reply to my letter of April 15, 2002. I enclose a copy of this letter for your convenience.

In your answer, could you clarify whether LACOTS consider the enclosed photocopy of the sign "TESCO organic courgettes - SAVE 45p a lb" legal or not.

I should be grateful if you could treat the reply to both this and my previous letter as urgent.

 
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