THE RETAIL price war has turned into a war of words after independent grocers lodged a series of complaints against Tesco’s price-cutting campaign.
RGDATA , which represents the grocers, has complained to the National Consumer Agency (NCA) and the Advertising Standards Authority of Ireland (ASAI) over Tesco’s claims to have cut prices by up to one-third in recent weeks.
RGDATA said advertisements run by the UK-owned multiple were misleading and inaccurate because many of the claimed price cuts related to items not previously stocked, but substitutes imported from the UK.
Other prices were reduced and then increased again, in contradiction of promises that the cuts were “for good”, it claimed.
In a letter to the NCA last week, the organisation said Tesco has reduced the prices of 5,500 goods, and not the 12,500 claimed in advertisements. Director general of RGDATA Tara Buckley accused Tesco of misleading consumers by providing incorrect pricing information, contrary to consumer legislation.
“Given the need to ensure that consumers are not misled or mistaken as to prices and enable to make informed decisions, it is of paramount importance that the NCA investigates these claims on the price reductions being made by Tesco to assess if the scale and extent of the price reductions that they are alleging are at the level and for the duration that they are claiming in their marketing, publicity and in-store promotions,” she wrote.
NCA assistant director Catherine Lenihan responded by asking for further information about the listing of imported goods by Tesco.
She pointed out that the agency would shortly be launching guidelines on price promotions for the retail sector.
In a further letter, Ms Buckley said RGDATA’s information came from retailers who had visited Tesco stores and suppliers. “They have indicated that only 5,000- 5,500 products were reduced in price to coincide with the announcement and that some of these price have subsequently gone up again.”
She said new product listings were noted in the categories of teas, cakes and biscuits, jams, spreads and sauces.
Ms Buckley also asked the NCA for an assurance that its public relations agency, Q4, which also represents Tesco, would not be involved in addressing the issues raised so that no potential for conflict of interest would arise.
Tesco chief executive Tony Keohane told The Irish Times last week the multiple had completely “repositioned” its prices. He acknowledged a small proportion of prices had gone upwards again but said this was due to error, adjustments and supplier price increases.
A spokesman for Tesco said RGDATA had failed to provide any evidence for its assertions. He said the claims had “no validity”.
