Sainsbury’s takes price war to court

Sainsbury’s is taking its price promotion battle with Tesco to the High Court by requesting a judicial review after receiving a kick in the teeth last week when the ad watchdog banned a campaign for its own scheme.
The supermarket claims Tesco’s Price Promise campaign misleads consumers by ignoring crucial differences between some of its own-brand products, although Tesco maintains it is offering “the kind of help customers want”.
Tesco’s scheme compares the price of goods its customers buy and refunds the difference in the form of a voucher if comparable goods are cheaper in a rival supermarket. But Sainsbury’s argues that it misleads customers because it fails to take into account difference in quality between own-brand products.
It is understood the row came to a head last week after the Advertising Standards Authority banned an ad campaign promoting Sainsbury’s Brand Match, but had kicked out complaints about Tesco’s scheme in July.
Sainsbury’s claims it is now time to make a stand on customers’ behalf. Commercial director Mike Coupe said: “More than ever, customers want to let their values guide them and in price-matching its products with ours, Tesco is – when it sees fit – choosing to ignore factors such as ethical or provenance certification or even country of origin.”
Tesco countered that Sainsbury’s complaints had been heard and rejected twice already. A spokesman said: “Tesco Price Promise offers customers reassurance on the price of their whole shop, in store and online, not just the big brand products. When family budgets are under pressure, that is the kind of help customers want.”

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