Tesco and Dunnes censured

THE Director of Consumer Affairs has issued court summonses for alleged breaches of the Groceries Order against Tesco and Dunnes Stores.

The moves has been welcomed by RGDATA, the organisation representing the independent retail grocery trade.

The case has arisen from promotions on baby food by both multiples earlier this month.

RGDATA director general Ailish Forde welcomed the swift action by the director of consumer affairs.

“The fact that the director has moved so swiftly to initiate proceedings against Dunnes and Tesco is very welcome news. In particular, suppliers who are bearing the brunt of any price war will breathe a sigh of relief,” she said.

Ms Forde reiterated that the retail grocery market in Ireland is highly competitive, with food inflation consistently below the headline rate of inflation and claimed that the groceries order had facilitated such a competitive environment.

“Dunnes Stores and Tesco together control 50% of the retail grocery market in Ireland. In some urban areas they control up to 70% or 80% of the market.

“It is vital organisations with such incredible market power are not allowed to abuse this at the expense of consumers, suppliers and retailers,” she said.