Lidl takes action against Tesco over advertising campaign

The German supermarket chain Lidl has taken High Court proceedings claiming Tesco is engaged in a misleading advertising campaign about Lidl prices.

Mr Michael Collins SC, for Lidl Ireland, yesterday secured leave from Mr Justice Kelly to serve proceedings on Tesco Ireland, including an application for an injunction restraining Tesco from continuing an allegedly misleading advertising campaign on prices of certain products sold in Lidl stores. The case was returned to Tuesday next.

Mr Collins said Tesco had placed a number of advertisements in newspapers on June 9th last which purported to compare, on the basis of visits to a number of Lidl stores on May 26th, the prices of certain goods sold in Lidl stores and Tesco stores. He said some of the prices attributed to the Lidl products were incorrect while others did not reflect a comparison of like with like. On the basis of the compared prices, Tesco claimed to be cheaper.

Lidl had opened its first store in Ireland in July 2000 and now had several stores. It claimed to be the cheapest supermarket in Ireland and was concerned about the effect of such misleading advertising, counsel said.

Lidl had written to Tesco asking it to desist from such advertising and had also complained to the Advertising Standards Authority and the Director of Consumer Affairs. The advertising authority had said it could not deal with the matter. The consumer director indicated the advertisements were misleading but had pointed out both companies were private entities with legal teams and that she did not want to be a pawn in a dispute between them.

Tesco had refused requests to cease the advertising campaign and had also refused last Friday to give an undertaking to that effect, despite being warned of Lidl's intention to take legal proceedings if the campaign continued. Tesco maintained the prices quoted were accurate at the time the goods were inspected.

Mr Collins indicated that while the injunction being sought related to specific products featured in the advertising campaign, it was hoped that, if granted, it would prevent misleading advertisements relating to any Lidl product.