Tesco wins court battle against Sainsbury’s over Price Promise
SAINSBURY’S claim that Tesco’s Price Promise campaign was unlawful and like comparing “apples with pears” has been thrown out by a High Court judge.
Sainsbury’s complained that, when applied to Tesco’s own label products and fresh food, the price comparisons were misleading, unfair and unlawful.
The promise involves a pledge to match Sainsbury’s, Asda and Morrisons on baskets containing at least 10 items up to a maximum value of £10.
Products at the centre of the dispute included bottled water, eggs, chicken korma, cod fillets, ham and tea bags.
Lawyers claimed the advert did not take into account elements such as the quality of products, sustainability and ethical matters. It was, they argued, a case of comparing “apples with pears”.
Sainsbury’s was seeking a judicial review over a decision made by the Advertising Standards Authority’s independent reviewer Sir Hayden Phillips, who had backed the watchdog’s original view that the products “met the same needs or purpose” and could therefore be compared under UK Advertising Codes.
Yesterday, however, the retailer’s claim was dismissed, with a ruling there were no grounds for saying Phillips had gone wrong in law.
A spokesman for the ASA told City A.M.: “We are pleased that Sainsbury’s claim for judicial rule against the ASA’s independent reviewer has been unsuccessful – we are satisfied with the outcome.”
However, the decision is a blow for new Sainsbury’s chief executive Mike Coupe, who has said previously that the company had a high chance of winning its claim.
“We do not believe the Tesco price comparison is fair and reasonable and this is something we will do the utmost to protect,” Coupe had said.
A Sainsbury’s spokeswoman told City A.M.: “We are disappointed by today’s outcome and we will consider all our options.”