Aldi sues Dunnes Stores over ‘misleading’ lower price claim

Supermarket giant Aldi has sued Dunnes Stores over a comparative advertising campaign involving allegedly misleading commercial practices and trademark infringement.

Aldi alleges Dunnes put up banners and labels in several stores around the country conveying what it says is the “completely misleading impression” that various Dunnes products are cheaper than the equivalent Aldi products.

It also alleges Dunnes compared a series of products which were not comparable on grounds including that the weights or quality differed.

Mr Justice Peter Kelly yesterday granted an application by Michael McDowell, for Aldi, to fast-track the action in the Commercial Court. Michael Howard, for Dunnes, consented to that and the judge adjourned after making directions for exchange of legal documents between the sides.

Mr McDowell said there had been "a history of skirmishing" between the companies over the matter but a stage had been reached where banners were being used by Dunnes stating "Lowest Price Guaranteed" which was "untrue and misleading".

'Brush-off'

While Aldi had written to Dunnes about its concerns, it “just got the brush off”, counsel added.

The proceedings have been brought by Aldi Stores (Ireland) Ltd and Aldi GmbH & Co. Kg against Dunnes Stores.

In its claim, Aldi alleges the banners displayed by Dunnes as recently as last month failed to comply with the Consumer Protection Act 2007 and the European Communities (Misleading and Comparative Advertising) Regulations 2007 on grounds including they failed to objectively compare one or more of the relevant and verifiable features of the Dunnes’ products with those of Aldi Ireland.

The banners also conveyed the impression that Dunnes’ products generally, or its “Family Essentials” range, were cheaper than those of Aldi Ireland when there was “no basis” for such a claim, Aldi contends.

Last June, solicitors for Aldi wrote complaining to Dunnes on a number of occasions but Dunnes had not made any attempt to explain or justify its conduct, Aldi said.

The proceedings were initiated after Aldi became aware of other banners being displayed in Dunnes’ outlets relating to the “Family Essentials” range and featuring the words “Lower Price Guarantee”.