The important distinction
An electronic shelf label is a display technology. Dynamic pricing is a pricing strategy. The presence of a digital label does not prove that a supermarket is increasing prices when demand rises, and ConsumerWise has not found evidence that the UK rollouts described in this article are presently being used for in-aisle surge pricing.
Small electronic screens are replacing paper price tickets in a growing number of UK supermarkets. They can be updated centrally in seconds, display loyalty offers and unit prices, help staff find products and remove the need to replace thousands of paper labels by hand.
That same speed creates a reasonable consumer question. If the price can change instantly, what happens when a shopper picks up an item at one price and the system changes it before the shopper reaches the checkout?
Why this is becoming a UK issue now
Morrisons announced in October 2025 that it would install 10.8 million electronic shelf labels across all 497 of its supermarkets, with the rollout beginning in 2026. The retailer said the system would improve the accuracy of price and product information, communicate More Card offers instantly and release staff from a repetitive manual task.
Industry reports in June 2026 said Tesco had agreed a multi-year rollout covering approximately 3,000 stores after earlier trials. Other UK grocers have also used or trialled electronic shelf-label technology.
The Bank of England added a wider economic dimension in April 2026. It said some sectors were experimenting with technology that could enable dynamic pricing in future and gave electronic shelf labels in supermarkets as an example. It did not say that the labels themselves were evidence of unlawful conduct or that UK supermarkets were already imposing surge prices on groceries.
What digital labels can improve
- Shelf labels and checkout systems can be updated from the same central price record.
- Promotions and loyalty prices can appear more quickly and consistently.
- Short-dated food can be reduced promptly, potentially cutting waste.
- Staff spend less time printing and replacing paper tickets.
- Unit prices, product locations and stock tasks can be linked to store systems.
What the same technology makes possible
Prices can be changed more frequently, across many products and stores, with less human intervention. Without clear controls, that creates risks around timing, proof, accessibility, loyalty conditions and the price a shopper reasonably understood when deciding to buy.
A retailer could use electronic labels while changing prices no more frequently than it did with paper. It could also use them only for reductions during opening hours. Conversely, a dynamic price can be used online without any shelf label at all. The consumer issue is therefore the pricing practice and the information supplied, not the screen technology by itself.
Digital labels are not the same as dynamic pricing
Four ideas that should not be confused
- Electronic shelf labels are remotely updateable screens showing product and price information.
- Dynamic pricing changes a price in response to time, demand, stock, capacity, competitors or another variable.
- Personalised pricing offers different prices to different customers using information about their characteristics or behaviour.
- Markdown pricing reduces items because of deterioration, expiry or excess stock and is already routine in supermarkets.
A retailer could use electronic labels while changing prices no more frequently than it did with paper. It could also use them only for reductions during opening hours. Conversely, a dynamic price can be used online without any shelf label at all. The consumer issue is therefore the pricing practice and the information supplied, not the screen technology by itself.
Dynamic pricing is not automatically unlawful in the UK. The legal risk arises where consumers are given false, unclear or incomplete price information, cannot understand material features of the pricing model or are charged a price that does not match the invitation to purchase on which they acted.
The law changed in April 2025
The Consumer Protection from Unfair Trading Regulations 2008 are no longer the main current framework for new conduct. From 6 April 2025, their core protections were replaced and updated by the unfair commercial practices provisions in Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.
The CMA's current guidance says that information about how a dynamic pricing model works may be material where the average consumer needs it to make an informed decision. Depending on the circumstances, this could include saying that prices are not static, explaining what makes them change and identifying a relevant price range.
The CMA has also said that an invitation to purchase must contain the total price the consumer will pay. If the indicated price differs from the price the consumer actually has to pay, that may infringe the law and may also amount to a misleading action.
Shelf labels still have specific rules
The Price Marking Order 2004, as amended, applies regardless of whether a shelf label is paper or electronic. The selling price must be unambiguous, easily identifiable, clearly legible and displayed close to the product. Where unit pricing is required, that information must also be displayed correctly.
Government guidance published with the CMA and Trading Standards tells retailers that the displayed price should match what the customer is charged at the till. It also says that, when increasing a price, the shelf-edge label should be changed before the higher price is charged.
A compliant digital label should still show
- the total selling price clearly and close to the correct product;
- the unit price where the Price Marking Order requires it;
- each applicable selling and unit price where different prices apply;
- prominent conditions for a loyalty, membership or multibuy price; and
- information that remains legible and understandable to the shopper.
What if the shelf says £2 but the till says £2.50?
The first point is often misunderstood. A shelf display is normally an invitation for the customer to make an offer to buy. If the higher price is identified before payment, the customer does not usually have a legal right to force the retailer to sell at the lower shelf price. The customer can ask the store to honour it, but can also refuse the transaction.
That contract-law position does not give retailers permission to display misleading prices. A genuine isolated mistake and a system that repeatedly shows consumers one price before charging another are not the same thing. The latter can raise regulatory and enforcement issues even where an individual shopper cannot compel a sale at the lower price.
If you spot a mismatch before paying
Ask a member of staff to check the electronic shelf label and the exact product description, size and barcode.
Take a clear photograph showing the product, label, displayed price and any loyalty or promotion conditions.
Ask whether the store will honour the displayed price and request that the label or checkout record is corrected.
If it will not honour the price, decide whether to proceed at the higher price or leave the item.
Keep the photograph and note the store, date and approximate time if the same problem appears systematic.
If you notice after paying
Keep the receipt and photograph the shelf label promptly if it is safe and practical to do so.
Ask customer services to refund the difference.
If you do not want the item, Citizens Advice says you can return it in its original condition and ask for a refund where you paid more than the advertised price.
Escalate through the retailer's complaint process if the store refuses to examine the evidence.
Report repeated or apparently deliberate misleading pricing through the Citizens Advice consumer service, which passes appropriate information to Trading Standards.
Evidence matters more with an electronic label
A paper ticket may remain in place after a purchase. A digital display can change before the shopper returns to photograph it. A receipt, a contemporaneous photograph, a witness and the retailer's own price-change audit log may therefore become important in resolving what was displayed at the relevant time.
The harder case: the label changes after you pick up the item
Suppose a shopper sees £2, puts the product in a trolley and continues shopping. The central system changes the electronic label and checkout price to £2.50 before payment. By the time the mismatch is challenged, the shelf also shows £2.50. There may be no visible discrepancy even though the shopper says the earlier display influenced the decision to buy.
Current law does not create a simple rule that physically picking up an item permanently locks its displayed price. The analysis may depend on the exact facts, the information presented, when the contractual offer and acceptance occurred and whether the commercial practice was misleading. It would be unsafe to tell consumers that every item is legally frozen at the price first seen.
This is where retailer policy and system design should go further than the legal minimum. A supermarket controls the price-change records and knows exactly when each label and checkout price was updated. The shopper normally does not.
What responsible supermarket controls should look like
ConsumerWise would expect
- Upward price changes during opening hours to be restricted, delayed or subject to a clear grace period.
- The lower recent price to be honoured where a shopper reasonably says the item was selected before an increase.
- A synchronised audit trail recording the label price, checkout price and exact time of every change.
- Staff to be able to retrieve that history quickly when a customer raises a discrepancy.
- Price changes to reach the shelf label before the checkout begins charging more.
- Screen or network failures to trigger a safe fallback rather than an invisible higher price.
- Loyalty and multibuy conditions to remain prominent instead of being compressed into unreadable text.
- Digital displays to meet practical accessibility needs for size, contrast, positioning and legibility.
Retailers could also publish a plain-language electronic pricing policy stating whether prices may rise during trading hours, whether only reductions occur in real time, what evidence is retained and how long a shopper has to claim the lower recently displayed price.
Could digital labels actually reduce pricing errors?
Yes. Paper labels and checkout databases can fall out of step because staff must physically replace tickets. Linking the display and till to the same central record could remove many ordinary mismatches. That is one of the strongest consumer arguments in favour of electronic labels.
The CMA's 2024 grocery pricing review found pricing errors across the stores it inspected. Supermarkets had the lowest reported error rate of the store types examined at 4.2%, but 60% of all errors identified across the review resulted in a higher price at the till. Better synchronisation could reduce that problem if the system is designed and governed properly.
The concern is therefore not that digital labels are inherently anti-consumer. It is that a system capable of improving accuracy is also capable of changing prices at a speed that makes scrutiny and evidence harder. Both propositions can be true.
Enforcement has become more serious
Trading Standards can investigate retail pricing practices, while the CMA now has direct consumer enforcement powers under the Digital Markets, Competition and Consumers Act. The CMA can determine infringements and impose penalties of up to the higher statutory limits, including up to 10% of worldwide turnover for relevant breaches.
That does not mean every incorrect label will lead to a major investigation. Enforcement bodies consider matters such as seriousness, scale, evidence, consumer harm and whether conduct is repeated. A pattern across products or stores is more significant than a single corrected mistake.
The ConsumerWise verdict
What shoppers should remember
- Digital shelf labels are not proof of surge pricing.
- Dynamic pricing is not automatically unlawful, but it must not mislead consumers.
- The shelf price should be clear, accurate and consistent with the checkout price.
- Before payment, you can challenge a mismatch and refuse the purchase, but cannot normally force a sale at the lower price.
- After payment, keep the receipt and evidence, ask for the difference or return the item where appropriate.
- Repeated discrepancies should be documented and reported rather than dismissed as isolated glitches.
The real test will not be whether supermarkets replace paper with screens. It will be whether they publish fair rules for when prices can change, preserve an auditable history and ensure that the price seen by the shopper remains the price presented at checkout. Technology can make pricing more accurate. It should not make the truth harder to prove.
Official sources and background
- Morrisons: electronic shelf-label rolloutThe retailer's announcement covering 10.8 million labels and 497 supermarkets.
- Retail Technology Innovation Hub: reported Tesco rolloutIndustry reporting on the planned multi-year rollout following earlier trials.
- Bank of England: the rise of dynamic and personalised pricingAnalysis of dynamic pricing adoption and technology that may enable it.
- Government update on dynamic pricingThe government's review of consumer protection and good practice.
- CMA: unfair commercial practices guidanceCurrent guidance under Part 4 of the DMCC Act.
- Digital Markets, Competition and Consumers Act 2024, section 226The statutory misleading-actions provision.
- Price Marking Order 2004 guidanceCurrent rules for selling prices, unit prices and presentation.
- CMA: accurate grocery pricing reviewFindings from inspections of grocery retailers.
- Citizens Advice: an item advertised at the wrong pricePractical guidance before and after payment.
