Government launches soft drinks price probe

The Government is to review the law on how pubs and restaurants display their prices after an investigation revealed they were charging three times as much for soft drinks as off-licences and supermarkets.

The investigation also found 70% of pubs were not displaying their prices adequately.

Consumer affairs minister Kim Howells said: "The fact that prices are not being displayed is of great concern to me as without that information the consumer cannot make an informed decision.

"This tradition of not adequately displaying prices seems to have resulted in a culture where drinkers do not routinely check prices on pub price lists and this has enabled pubs, bars and restaurants to charge higher prices for certain drinks."

The investigation found customers paying three times more than the retail price for non-alcoholic drinks in pubs and restaurants, compared with only twice as much for beer and lager.

"Although you expect to pay a higher price for a drink in a pub than when you buy a drink from a supermarket, these statistics prove the difference between soft drinks and alcohol is substantial and must be looked at," Howells added.

"I am determined to make sure drinkers get a fair deal, and price visibility must be an element in this."

The Government will talk to the trade, consumer groups and trading standards officers about how the law can be improved and whether any codes of conduct should be developed.

It is also passing its report on to the director general of fair trading to decide whether the situation should be investigated further.

The Price Marking (Food and Drink on Premises) Order 1979 requires pubs, restaurants and similar establishments to display the price of 30 items of food and drink, but does not specify what items should be included.