Price per Unit of Measurement: Equalizing Standards Between Supermarkets and E-commerce
Fifth installment of our series on the Competitiveness and Cost of Living Reduction Bill.
The Bill proposes a stricter price disclosure obligation and, above all, one that applies equally to the physical shelf and digital channels. For retailers that currently manage online prices under a different logic than their brick-and-mortar stores, this will mean reviewing the pricing engine, not just the shelf tag.
What Changes
The Bill proposes introducing a specific regime for standardized price display, applicable to large retailers, grocery stores, personal hygiene, or household product retailers that meet certain thresholds, as well as e-commerce channels. The core obligation, alongside the selling price, will be to display the price per equivalent unit of measurement (per kilogram, liter, meter, or unit, as applicable), including under promotion or discount scenarios.
It Is Not Just a Matter of Changing the Price Tag
The rule will also cover e-commerce channels, meaning that the price per unit of measurement must be calculated and displayed on the online product page, at checkout, and in any digital advertising material where the price is stated. For a company that currently manages its e-commerce platform with a product catalog independent from its store's pricing system, this new regulatory requirement will not be solved with a new sign. It will require the online pricing engine to automatically calculate and display the equivalent unit price, product by product and promotion by promotion.
The Main Risk of Errors Will Be in Promotions
The rule will require displaying the price per equivalent unit of measurement even when running promotions or discounts. This will demand extra vigilance to avoid pricing errors in "combos," packs of different sizes than the individual product, and/or second-unit discounts. If the promotional price fails to recalculate based on the equivalent unit price consistently with the non-promotional product, the comparability the rule seeks to guarantee will break down, opening the door to consumer complaints and/or ex-officio enforcement by regulatory authorities.
Practical Application
To prepare your company for the upcoming regulatory changes, we suggest:
Determine threshold eligibility: Check whether the business falls under the operational thresholds to be set by the regulations for large retailers and stores selling food, personal hygiene, or household goods.
Audit the e-commerce pricing engine: Review product pages, checkout processes, and digital ad creative to confirm that the equivalent unit price is properly calculated and displayed.
Review promotional mechanics: Check combos, packs, and second-unit discounts, where equivalent unit price calculations are most likely to become inconsistent with non-promotional products, increasing the risk of penalties.
Train commercial and marketing teams: Educate the teams responsible for uploading and managing promotions.
Ultimately, the obligation to inform consumers of the unit price is not new; what is new is the requirement for that information to be consistent between physical stores and digital channels, as well as across promotional offers. In this regard, it is best to treat this as a pricing system project, rather than a mere adjustment of price tags.