Price controls on essential food items: draft legislative provisions

Closes 24 Nov 2026

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Chapter 2: Price caps on essential food items - the duty

This chapter sets out a proposed model for price caps and alternatives.

We are proposing the following model (an item level price cap):

Price caps would be set for essential food items sold by qualifying retailers. The food items that are price capped would be set out in Regulations.

Where a retailer offers for sale one of those products in a store or online, they would be under a duty to sell at least one type of that product at or below a maximum price (the price cap).

Chapter 2 of the consultation paper sets out how this model would operate in greater detail and also considers some alternative models.

The proposed approach has been selected as the illustrative model for consultation because it is relatively straightforward for consumers to understand and for retailers and regulators to monitor. However, we recognise that other models may offer greater flexibility in responding to changing supply chain conditions and market pressures. While we are seeking views on the benefits and drawbacks of the illustrative model, we also welcome views on alternative models.

7. Which model of price cap do you consider likely to be the most effective: an item level price cap; a category-based price cap; a basket-based approach; or an alternative?

Price cap models

Item level price cap: each individual product subject to the cap has a price cap set for it. 

Category-based price cap: where a category includes several similar products, such as fruits like apples, pears and bananas, a retailer would be required to offer at least one item within that category at or below a capped price.

Basket-based approach: an overall price limit is applied to a basket of goods, allowing retailers to offset higher prices for some items with lower prices for others. 

 

8. Do you agree or disagree with the proposal that if a price capped item sells out, then the retailer should be required to sell an alternative at the capped price (if available and on sale to customers)?
9. The proposal is that retailers would not be required to stock price capped food items. Do you agree or disagree with this approach?
10. Please explain your answers to questions 8 and 9.
11. Do you agree or disagree that price caps should apply to relevant products sold online?
12. Do you agree or disagree that a retailer should be able to meet their obligation to offer a food item at a capped price by offering a variety that exceeds the minimum requirements specified in Regulation?

For example, if the requirement related to 1 pint of milk, could the obligation be met by selling a 2 pint carton at the capped price?

13. Should price capped foods: