Tesco seeks to block price ads by Dunnes

TESCO WANTS to stop Dunnes Stores running what it says are misleading price comparison advertisements in the run-up to Christmas…

TESCO WANTS to stop Dunnes Stores running what it says are misleading price comparison advertisements in the run-up to Christmas, the High Court has heard.

The hearing of a dispute between the two supermarket giants began yesterday after a judge was told it was urgent because there would be a lot of press advertising over the next few days.

Ms Justice Mary Laffoy will today continue hearing the injunction application by Tesco seeking to restrain Dunnes from placing the advertisements in newspapers.

The advertisements relate to products sold as “everyday low-price” products and promotional products known in the trade as “hi/lo pricing”. Tesco says it is concerned because the Dunnes adverts make direct and largely unexplained comparisons between everyday and short-term promotional prices.

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Tesco claims the adverts are in breach of mandatory statutory requirements and give the impression Dunnes is generally much cheaper than Tesco on identical products. Tesco denies this is so.

Dunnes claims Tesco has engaged in similar advertising and now, in the run-up to Christmas, was asking the court to intervene. Dunnes claims Tesco’s application is misconceived in law, unsustainable and Tesco has created and artificial urgency about the matter.

Dunnes also says any intervention in advertising will have a “chilling” effect on competition within the retail sector.