To encourage consumers to come and shop at its stores, Lidl made a clumsy communication. In these, the brand claims to offer less than its competitor Tesco. This led the Aldi group to file a complaint, accusing the German giant of false advertising. Lidl still defended itself, 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. Reason for which, the latter insure their backs, seeking by all means to save money.
This happens for the food products they buy at discount stores. Not only do they always choose those who have The best value for moneybut also go to the stores with the most affordable prices.
As far as they are concerned, brands are aware that must constantly innovate to retain your customers. The fact is that a price battle has been going on for the last few months. To stand out, you need to have more than one trick up your sleeve. If Leclerc promotes its anti-inflation shield, Lidl offers a significant discount on some of its products.
Lidl misleading advertising
With a reputation as the king of bargains, Lidl is somehow doing it despite inflation. The brand recently released two ads that delighted customers. They claimed that consumers could make significant savings buying the German giant. A tempting offer that, however, caused him some concern.
In fact, in one of the advertisements, Lidl claims that by shopping in its stores, consumers can save more than 35% compared to Tesco. Which would be wrong. Also, the ads are not specific enough. They do not sufficiently indicate the products in question, namely the Scottish-themed range. This prompted the Advertising Standards Authority to issue an official press release.
“We believe that consumers (in Scotland) would likely have a broader understanding of the savings associated with the price differences offered by the two supermarkets, rather than being specific to just the produce basket example, and that the same level of savings could be achieved more widely. Usually at a typical weekly store,” she announced.
Lidl forced to withdraw ‘misleading’ advertising brochure after Aldi complainthttps://t.co/UAO2eTQxiy
— The daily record (@Daily_Record) July 15, 2022
This before adding:
“Because we had seen no evidence that this general level of savings could normally be achieved, we believe that the advertisements were likely to be misleading. »
In its defense, the German giant explained that it communicated about a selection of products and not about all of them. Something that, according to the chain of stores, customers have understood perfectly. For information, misleading advertisements can lead to serious penalties. Under the law, the perpetrator can receive a sentence ranging from up to 2 years in prison.
This is not the first time at Lidl
As Aldi, Lidl and Tesco regularly compare their prices, this type of situation often occurs. This was particularly the case in the UK some three years ago. Weathera battle over prices it was all the rage, Tesco said in an advertisement, offered cheaper than Lidl and Aldi.
An announcement that did not last long because it was considered too imprecise. In fact, the sign does not clearly indicate the references in question. That’s why justice took over the case and issued a broadcast ban. Same story in 2016. That year, Aldi said that by shopping at her stores, customers could save big.
It claimed to offer cheaper products than competitors Morrisons, Asda, Sainsbury’s and Tesco. The matter soured very quickly and had the same purpose as that of 2019. That is, the ad has been banned. Note that a recent study showed that more and more consumers are turning to discount stores.
Their goal is to save as much as possible in a context where the cost of living constantly increasing. A boon for Lidl stores and their competitors.
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