Clever wording of advertising claims
Mar 25 2009
Retail Wrap >>

Recent television advertisement for Fruit & Veg City Holdings (Pty) Limited made the claim that it is “the largest retailer of fresh produce in South Africa”. 

Shoprite Checkers (Pty) Limited lodged a competitor complaint against this advertisement with the Advertising Standards Authority of South Africa (“the ASA”). In essence, Shoprite’s complaint was that, in a previous matter before the ASA, it had been proven that Shoprite’s fresh produce sourcing and supply department, Freshmark, is the largest supplier of fresh produce in South Africa and that the retail sales of Shoprite far exceed those of Fruit & Veg City.

Fruit & Veg City responded that it had amended its previous claim “the largest supplier of fresh produce in South Africa” to the current claim, “the largest retailer of fresh produce in South Africa”. Furthermore, the fact that Shoprite’s retail sales are larger than those of Fruit & Veg City is not relevant, as the fresh produce sector is merely one sector within Shoprite Checkers.

Fruit & Veg City went on to submit information from the Competition Commission showing that it had a larger market share in terms of fresh produce than all national chains, including Shoprite Checkers. (Fruit & Veg City had been before the Competition Commission when Pick ‘n Pay had expressed a wish to acquire it.)

The complaint was decided on the basis of sections of the Code of Advertising Practice dealing with substantiation of claims as well as misleading advertising.

The complaint was decided in favour of Fruit & Veg City, as the ASA ruled that the claim made was factually correct. It is interesting to note that the ASA found the Competition Commission to be an independent and credible expert in relation to the investigation of the claim.

The ASA went on to say that “It is…doubtful whether it is appropriate to compare a supplier (Freshmark) with a retailer” as Shoprite had done in its complaint.

Whether or not the average consumer would really consider and appreciate the distinction between a supplier and retailer is unclear. But the message to consumers is indeed clear – pay careful attention to the claims made in advertising!

Adapted from Source: www.adamsadams.com, 23 March 2009