In order to encourage consumers to shop in its branches, Lidl made a clumsy announcement. In these, the brand says it offers less than its competitor Tesco. This prompted the Aldi group to file a complaint, blaming the German giants false advertising. Lidl still resisted, but did not escape the sanction. The details through these few lines.
Inflation is in full swing
Product prices continue to rise in European countries. France is no exception. Indeed, the health crisis added to the current context makes the life of the French particularly complicated. For this reason, the latter secure their backs by trying any means possible to save money.
This goes through the groceries they buy in hard discount stores. You don’t just always choose those with the best value for moneybut also visit the stores with the cheapest prices.
As far as they are concerned, brands are aware that they must constantly renew itself to keep their customers. The fact is that a price war has been raging for several months. To get noticed, you need to have more than one trick up your sleeve. When Leclerc advertises its inflation shield, Lidl offers it a significant discount on some of its products.
False advertising by Lidl
Despite inflation, Lidl is somehow considered the king of bargains. Recently, the brand launched two ads that wowed customers. These stated that consumers could make significant savings by buying from the German giant. A tempting offer that nonetheless caused him some concern.
In fact, in one of the ads, Lidl states that consumers can more than save by shopping in its stores 35% compared to Tesco. Which would be wrong. Also, the ads aren’t specific enough. They do not sufficiently specify the products concerned, namely the Scottish themed range. This prompted the Advertising Standards Authority to issue an official press release.
“We assumed that consumers (in Scotland) would likely have a broader understanding of the savings related to the price differentials being offered by the two supermarkets, rather than just being limited to the shopping cart example, and that the same level of savings could be achieved more broadly. Usually in a typical weekly market,” she announced.
Lidl forced to withdraw ‘misleading’ advertising brochure after complaint from Aldi https://t.co/UAO2eTQxiy
— The Daily Record (@Daily_Record) July 15, 2022
This before adding:
“Since we had seen no evidence that this overall level of savings could normally be achieved, we thought the advertising was likely to be misleading. »
In its defence, the German giant explained that it communicated about a selection of products and not all of them. Something the store chain says customers fully understood. For your information, misleading advertising can result in severe penalties. Under the law, the author can receive a penalty ranging from up to 2 years in prison.
This is not a first at Lidl
Since Aldi, Lidl and Tesco regularly compare their prices, such situations often arise. This was particularly the case in the UK about three years ago. Whilea price war raged, Tesco said in an ad that was offered cheaper than Lidl and Aldi.
An advertisement that did not last long because it was considered too imprecise. In fact, the sign did not clearly indicate the references in question. Therefore justice took over the case and issued a ban on broadcasting. Same story in 2016. That year, Aldi said customers could save big by shopping in its stores.
It claimed to offer cheaper products than its competitors Morrisons, Asda, Sainsbury’s and Tesco. The affair turned sour very quickly and had the same finality as that of 2019. That said, the ad has been blocked. Note that a recent study showed that more and more consumers are turning to discount retailers.
Your goal is to save as much as possible in one context cost of living steadily increasing. A blessing for Lidl stores and its competitors.