NAD recommends Lidl modify or discontinue certain price comparison claims

NEW YORK – Following a challenge from Ahold Delhaize USA, BBB National Programs’ National Advertising Division recommended that Lidl US discontinue or modify certain grocery price comparison and “exact same basket” comparison claims.

The National Advertising Division (NAD) reviewed Lidl’s comparative advertising claims, which suggested that consumers could save 25–30% or specific dollar amounts by shopping at Lidl instead of Ahold Delhaize’s local grocery brands like Food Lion, Stop & Shop, and Giant Food. These claims were featured in both print and online ads and were based on an “exact same basket” comparison. NAD ultimately sided with Ahold Delhaize, finding that Lidl’s savings claims were not adequately substantiated and could mislead consumers about the actual price difference
 

Stale Pricing Claims

At issue for NAD was whether Lidl’s price comparison claims of 25 – 30% savings or savings of a specific dollar amount were stale because the ads ran weeks or months after the comparisons were made. Because the evidence indicates that prices for at least some of the items had changed by the time the advertisements ran and that Ahold updates its prices weekly, NAD determined that seven days is a reasonable period of time for price comparison claims. 

NAD found that Lidl’s disclosure of the date of comparison that appeared in the advertising was not sufficient to dispel the message that consumers could presently save 30% when shopping at Lidl. NAD also found that the disclosure was not always present and was sometimes in a small font and hard to read. 

Therefore, NAD recommended that Lidl discontinue the challenged price comparison claims unless the substantiation is based on price checks within seven days of the comparative advertising and accompanied by a clear and conspicuous disclosure of the basis and date of the comparison.
 

Sale Pricing Claims

NAD also examined Lidl’s comparative pricing claims, which did not account for the discounted prices offered through Ahold’s free loyalty programs. The record showed that the majority of Ahold’s customers receive discounted prices under these programs, and even nonmembers regularly obtain the discounted prices in-store.

NAD concluded that the fact that Lidl’s comparisons did not take loyalty discounts into account is material information that should be disclosed to reduce ambiguity and prevent consumer confusion. Therefore, NAD recommended that Lidl disclose whether the comparison is to the base price or to the discounted loyalty price.
 

Exact Same Basket Comparison Claims

NAD also examined Lidl’s claims that consumers could save on the “exact same basket.” NAD found that the phrase “exact same basket” expressly communicates that the items being compared are more than merely similar - they are the exact same - and determined consumers would not expect the “exact same” basket to contain items of different brands, quantities, or other material characteristics. 

Therefore, NAD recommended that Lidl discontinue its “exact same basket” claims.

In its advertiser statement, Lidl stated they would “implement the National Advertising Division’s recommendations in this matter on a going forward basis as part of the voluntary self-regulatory process.”