The conviction of the supermarket chain, Tesco Ireland Ltd, for overcharging and failing to display the price of goods will dismay its huge customer base in this State. The company, which likes to portray itself as the friend of the discriminating but thrifty shopper, was fined £3,800 by Dublin District Court. The court was told that inspectors from the Office of Consumer Affairs were charged between 5p and £1.13 more than the marked price for some grocery items late last year. The embattled Tesco chain can draw some comfort from the acknowledgement by counsel for the Office of Consumer Affairs that there was no systematic or deliberate overcharging in the company's outlets. Consumers may also be reassured by a more recent official study which indicated that Tesco was the second least likely among supermarkets surveyed to overcharge.
The Office of Consumer Affairs made a series of random visits to Tesco stores after a survey from RGDATA, the independent retailers' group, revealed discrepancies between display and charged prices at Tesco branches. The Director of Consumer Affairs, Ms Carmel Foley, is to be commended for her initiative in pursuing a case against Tesco. But there will be some residual concern that the office was responding to a survey from a substantial vested interest (RGDATA) instead of being much more proactive.
There is one other cause for concern: the fines imposed on Tesco in each case were only £100 below the maximum which could have been imposed. In all the circumstances a fine of £3,800 seemed much too lenient; Tesco is a multi-billion pound business which generates huge profits in this State. Ms Foley is right to demand much stiffer and more punitive sanctions for supermarkets and retailers found guilty of overcharging customers. Indeed, Tesco might count itself fortunate; in the US, as Ms Foley pointed out, supermarkets found to be overcharging can be closed down.
This week's case in the District Court is only the latest in a series of public relations setbacks for Tesco since it acquired the Quinnsworth chain. Last year, Tesco Ireland was forced to apologise after its parent group in Britain trumpeted its exclusive support for British beef in the British Farmers Weekly. The company has also struggled to convince Irish consumers - and suppliers - about its purchasing policies. There is the strong sense that the company, despite an elaborate and expensive public relations campaign, has still to come to terms with local sensitivities
In truth, most of the main supermarket chains have suffered their own share of difficulties. Superquinn, which liked to position itself above the fray, was badly embarrassed by the "hello money" debacle. Londis has emerged as the worst offender in a recent survey on overcharging, while Dunnes Stores has been no stranger to controversy. In its own way, all of this makes the case for much more rigorous consumer legislation. As Ms Foley has pointed out, there remains a serious imbalance of power between the shopper and the retailer.