The frozen food favourite has published a proposed amendment to the Digital Markets, Competition and Consumers Bill, and has urged cross-party politicians to back the change.
Today, the Bill is being scrutinised by the House of Lords, but the supermarket is calling for a relaxation of the strict rules and laws when it comes to infant milk.
Retailers are allowed to cut the price of infant formula, but they’re prohibited from advertising this. The current law also states that retailers aren’t allowed to let customers buy formula with loyalty points or store gift cards. Further, they can’t reduce the price of stock nearing its end of shelf life and food banks are also prevented from stocking baby formula (0-6 months).
Iceland’s proposed new clause in the Bill would require the Secretary of State for Business and Trade, Kemi Badenoch, to make regulations regarding the promotion and sale of infant formula, something previously governed under EU law.
Under the change, it would allow retailers to advertise in retail premises, promote discounted infant formula, and sell infant formula in exchange for non-cash-based forms of payment. It would also allow infant formula to be given away at food banks.
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It comes after Iceland publicly announced in August last year that it had cut the price of baby milk following feedback from customers that many were struggling to feed their babies and toddlers as a result of the cost-of-living crisis.
It reported that parents were resorting to reducing the number of times they fed little ones, were ignoring best before dates, over-diluting powdered infant formula or trying alternatives such as porridge which come with “worrying risks to child health”.
Indeed, a review of grocery pricing by the Competition and Markets Authority (CMA) last year revealed that baby formula prices in the UK had risen 25% over the past two years – with branded suppliers accused of raising prices by more than their input costs.
Last week, Iceland and a spate of supermarkets reduced the price of infant formula, after manufacturer Danone agreed to a 7% price drop to Aptamil products.
‘Fix a broken baby formula market’
Executive chairman, Richard Walker, said: “We promised customers we wouldn’t rest until we fixed this broken market and we have been working with legal experts to produce an amendment which we believe uses our separation from the EU regulatory framework to help hard-pressed families.
“This amendment would give Ministers the chance to strip away regulations which are currently making it harder for families to access more affordable formula. While breastfeeding is always best for babies, the millions who rely on formula are struggling with costs and we believe this amendment would be a big step forward in the campaign to support them.”
Walker added: “We can’t just wait for the Competition and Markets Authority finally to act on price gouging in the formula market: families need our help now.”
