Discount chain Lidl has started legal proceedings against Tesco in the Irish courts over “misleading” price comparison ads that it claims are damaging its business.
It has asked the High Court in Dublin to order that Tesco cease an advertising campaign featuring the prices of certain products sold in Lidl stores, which the discount chain claims are incorrect. The case is due in court next week (July 29).
Outlining the Lidl case at a preliminary hearing last week, senior counsel Michael Collins told the court that the offending Tesco ads had appeared in Irish newspapers last month. “On the basis of visits to a number of Lidl stores on May 26, the ads purported to compare the prices of certain goods in the two chains,” he said.
Some of the prices given for Lidl products were incorrect, he alleged, while others quoted did not compare like with like. On the basis of the compared prices, Tesco claimed to be cheaper.
Collins said Lidl “claims to be the cheapest supermarket in Ireland and is concerned about the effect of such misleading advertising on its business”.
It had written to Tesco asking that it stop such advertising and
had also complained to the Advertising Standards Authority and to the director of consumer affairs. The advertising body said it could not deal with the matter, while the consumer affairs director Carmel Foley, he claimed, “had indicated the ads were misleading”. However, he said Foley had pointed out both companies were private entities with legal teams and she did not want to be a pawn in a dispute.
The Tesco case was not presented at the preliminary hearing, but Collins claimed it had refused requests to cease the advertising campaign, despite the threat of legal proceedings.
Tesco had maintained the prices quoted were accurate at the time, he said, the goods involved were inspected.
Tesco said it would make no formal statement, but is understood to be determined to contest the case vigorously.
Anthony Garvey
It has asked the High Court in Dublin to order that Tesco cease an advertising campaign featuring the prices of certain products sold in Lidl stores, which the discount chain claims are incorrect. The case is due in court next week (July 29).
Outlining the Lidl case at a preliminary hearing last week, senior counsel Michael Collins told the court that the offending Tesco ads had appeared in Irish newspapers last month. “On the basis of visits to a number of Lidl stores on May 26, the ads purported to compare the prices of certain goods in the two chains,” he said.
Some of the prices given for Lidl products were incorrect, he alleged, while others quoted did not compare like with like. On the basis of the compared prices, Tesco claimed to be cheaper.
Collins said Lidl “claims to be the cheapest supermarket in Ireland and is concerned about the effect of such misleading advertising on its business”.
It had written to Tesco asking that it stop such advertising and
had also complained to the Advertising Standards Authority and to the director of consumer affairs. The advertising body said it could not deal with the matter, while the consumer affairs director Carmel Foley, he claimed, “had indicated the ads were misleading”. However, he said Foley had pointed out both companies were private entities with legal teams and she did not want to be a pawn in a dispute.
The Tesco case was not presented at the preliminary hearing, but Collins claimed it had refused requests to cease the advertising campaign, despite the threat of legal proceedings.
Tesco had maintained the prices quoted were accurate at the time, he said, the goods involved were inspected.
Tesco said it would make no formal statement, but is understood to be determined to contest the case vigorously.
Anthony Garvey
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