BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh

 You are in: Business
Front Page 
UK Politics 
Market Data 
Your Money 
Business Basics 
Talking Point 
In Depth 

Commonwealth Games 2002

BBC Sport

BBC Weather

Wednesday, 12 December, 2001, 07:04 GMT
Tesco rebuke over price claims
Tesco still claims their stores are cheaper
Supermarket chain Tesco has been rebuked by the advertising watchdog for claims it was cheaper than its rival Sainsbury's.

The Advertising Standards Authority (ASA) criticised Tesco for two leaflets which compared weekly shops at stores in London.

Sainsbury's complained the adverts mislead shoppers into thinking the difference in price applied to all its stores.

They deliberately misled customers and have now been found out

Sir Peter Davis, Sainsbury's
Tesco has been told to seek advice before considering similar advertising, but maintains its claims that it is cheaper.

In the first leaflet, Tesco said it was 16% cheaper than its rival based on a weekly shop carried out at a Sainsbury's store in London in March this year.

The second, based on the same theme, said Tesco was 13% cheaper and showed a picture of two till receipts.

Selected brands

The ASA upheld both complaints from Sainsbury's and asked Tesco to seek advice from the Committee of Advertising Practice before producing any similar price comparisons.

Chief executive for Sainsbury's Sir Peter Davis said: "Customers should know that this type of advertising, comparing small samples of products, cannot be trusted.

"Tesco selectively chose products on 'special offer' at Tesco but not Sainsbury's.

"They deliberately misled customers and have now been found out."

In response, a Tesco spokesman said: "We accept that the design of these local leaflets could have given customers the impression that Tesco was on average 13% and 16% cheaper than Sainsbury's, when in fact we are on average 8% cheaper.

"The leaflets are no longer being used."

See also:

27 Nov 01 | Business
Tesco sales remain strong
10 Apr 01 | Business
Tesco profits top 1bn
21 Nov 01 | Business
Sainsbury's profits edge higher
Internet links:

The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.

E-mail this story to a friend

Links to more Business stories