Following a challenge from Ahold Delhaize USA, BBB National Programs’ National Advertising Division recommended Lidl US LLC discontinue or modify certain grocery price comparison and “exact same basket” comparison claims.
Ahold and Lidl are grocery retailers. At issue for the National Advertising Division were comparative savings claims in print and online advertising, including claims of 25% to 30% savings and statements that consumers could save specific dollar amounts when shopping at Lidl instead of Ahold’s local grocery brands, including Food Lion, Stop & Shop and Giant Food, according to a news release.
At issue for NAD was whether Lidl’s price comparison claims of 25% to 30% savings or savings of a specific dollar amount were stale because the ads ran weeks or months after the comparisons were made. Because the evidence indicates prices for at least some of the items had changed by the time the advertisements ran, and Ahold updates its prices weekly, NAD determined seven days is a reasonable period of time for price comparison claims.
NAD found Lidl’s disclosure of the date of comparison that appeared in the advertising was not sufficient to dispel the message that consumers could presently save 30% when shopping at Lidl. NAD also found that the disclosure was not always present and was sometimes in a small font and hard to read.
Therefore, NAD recommended Lidl discontinue the challenged price comparison claims unless the substantiation is based on price checks within seven days of the comparative advertising and accompanied by a clear and conspicuous disclosure of the basis and date of the comparison.
NAD also examined Lidl’s comparative pricing claims, which did not account for the discounted prices offered through Ahold’s free loyalty programs. The record showed the majority of Ahold’s customers receive discounted prices under these programs, and even nonmembers regularly obtain the discounted prices in-store.
The fact that Lidl’s comparisons did not take loyalty discounts into account is material information that should be disclosed to reduce ambiguity and prevent consumer confusion, NAD concluded. Therefore, NAD recommended Lidl disclose whether the comparison is to the base price or to the discounted loyalty price.
NAD also examined Lidl’s claims that consumers could save on the “exact same basket.” NAD found that the phrase “exact same basket” expressly communicates that the items being compared are more than merely similar, they are the exact same, and determined consumers would not expect the “exact same” basket to contain items of different brands, quantities or other material characteristics.
Therefore, NAD recommended Lidl discontinue its “exact same basket” claims.
In its advertiser statement, Lidl stated they would “implement the National Advertising Division’s recommendations in this matter on a going forward basis as part of the voluntary self-regulatory process.”
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