In a bid to endorse the principle of transparency, the Ministry of Economy and Commerce (MEC) has issued a decree obliging major retail outlets to declare the unit price of goods on sale.
According to the new decision, stores are to display unit prices on price tags, based on the nature of the product and using one of the following measurement units: If the item is measured by weight - the kilogram or 100 grams is used as a unit; if the item is measured by volume - the litre or 100ml is used as a unit; if the item is measured by length - the metre is used as a unit; and if the item is measured by surface area - the square metre (m2) is used as a unit.
The initiative comes within the framework of the ministry’s efforts to encourage competition in the market and to protect the consumers’ right to compare between the prices of products sold in different weights and sizes.
A study by the ministry has revealed that retail outlets display prices without specifying the unit price, making it difficult for consumers to compare between products.
The decision will require outlets to review the form and content of price tags currently in place, to include unit prices in addition to the selling price, name of the product and size. As per the new order, selling price should be displayed against a yellow background while unit price should be displayed against a white background in order to enable consumers to easily distinguish between them.
All retail outlets are to adhere to this system, regardless of the methods currently adopted to display prices, either by placing price tags directly on products or visibly forward-facing on display shelves.
The newly introduced law will apply to the majority of food and non-food commodities in addition to promotional and discount campaigns unless the overall cost of the product is the same as the unit price.
The new decision has exempted outlets from declaring unit prices in such cases where there would be no benefit in comparing between items. (For instance, when cooking oil is offered for sale in one-litre bottles, there would be no benefit in writing the litre price for a second time on the price tag.)
MEC said that during the first stage of implementation, the decision would apply to major retail outlets of 400sqm and above. Taking into consideration the time required to revise and replace currently approved price tags, stores have been granted six months to adjust their positions according to the new law.
The Ministry of Economy and Commerce said consumer awareness coupled with cooperation of the retail outlets will ensure the success of the initiative. The ministry has urged all consumers to report violations to its Consumer Protection and Anti-Commercial Fraud Department.