In fresh times, the price war between Ladybug and Lidle has been somewhat quiet. The vacation period brought calm but besides crucial decisions on dubious practices utilized by these trading networks. As it turns out, customers are not always beneficiaries of these struggles. In fact, in fresh weeks, the Advertising Ethics Commission (KER) ruling squad has taken crucial steps towards Ladybug advertising practices that have misled customers.
Ladybug on Paragons convinced her she was the cheapest
According to the information provided by the portal “Unlawless”, the Advertising Ethics Commission's ruling squad issued a resolution in June 2024 in consequence to a complaint concerning the operation of the Ladybug network. The complaint afraid information printed on receipts that suggested that Ladybug was the cheapest since 2002 and cheaper than Lidl. The complainant considered this to be a ‘scandal and misleading advertising slogan’.
ASM Sales Force Energy Research: Ladybug Not Always cheapest
The complaint was supported by studies conducted by ASM Sales Force Energy, which showed that Ladybug was not always the cheapest commercial network in Poland, and was sometimes more costly than Lidl. specified information misleads customers and affects their purchasing decisions, which constitutes an act of unfair competition.
Introduction of Clients to mistake and No Data Sources
The CER ruling squad found that information printed on receipts violates many provisions of the Advertising Ethics Code. It was found that the recipient's assurance and the usage of his ignorance had been abused. Advertising may have misled the value of the product and failed to meet the requirements of comparative advertising. The CER clearly stated that the data submitted were impossible to verify by the recipient and were contrary to the principles of advertising ethics.
Statement by the Advertising Ethics Commission
In the message of the CER we read:
‘The data utilized in advertising and not covered by this concept within the meaning of the Code shall indicate the origin and shall not be utilized in a misleading way. Data must be presented in a methodologically correct manner. The presentation of statistical data must, in particular, take into account the rules of statistical application, including the statistical mistake phenomenon."
Partial Transmission and No Explanations
The CER besides stated that advertising was biased and lacked justification for the information provided. Moreover, the receipts were illegible and Ladybug did not supply adequate explanations on the matter.
Will the Valuable War between Lidle and Ladybug Return?
Due to methodological differences in marketplace investigation and inaccuracies in the wording of the receipts themselves, the complaint concerning the violation of the law prohibiting the usage of false transmission was dismissed. The CER ruling squad decided unanimously. The decision of the Advertising Council may now affect further decisions of the Office for Competition and Consumer Protection (UOKiK) concerning the activities of Jeronimo Martins, owner of the Ladybug network.
The Future of Competition
Although the price war between Lidle and Ladybug has quieted down, it is possible that after vacation it will warm up again. In the context of fresh decisions and resolutions, customers can hope for clearer and fairer advertising practices from both commercial networks.
The decision of the Advertising Ethics Commission on Ladybug is an crucial step towards protecting consumers from misleading advertising practices. Customers deserve clear and honest information to aid them make informed purchasing decisions. Although the price war between the main commercial networks may return, hopefully it will be conducted in a more ethical and transparent way.
Read more:
Ladybug Cheated on Paragons: An crucial Decision of the Commission of Advertising Ethics
