Aldi takes Dunnes to court over ‘misleading’ comparison

Supermarket giant Aldi has gone to court alleging a Dunnes Stores ad campaign gives a “completely misleading impression” that various Dunnes products are cheaper than Aldi equivalents.

Aldi alleges misleading commercial practices and trademark infringement.

It says Dunnes put up banners and labels in several stores conveying what it says is the “completely misleading impression” that certain Dunnes products are cheaper than Aldi equivalents.

It also alleges Dunnes compared a series of products which were not comparable on grounds which include that the weights or quality differed.

Mr Justice Peter Kelly yesterday granted an application by Michael McDowell SC, for Aldi, to fast-track the action in the Commercial Court. Michael Howard SC, for Dunnes, consented.

Mr McDowell said there had been “a history of skirmishing” between the companies over the matter, but a stage had been reached where banners were being used by Dunnes stating “lowest price guaranteed”, which was “untrue and misleading”. While Aldi had written to Dunnes about its concerns, it “just got the brush-off”.

The proceedings have been brought by Aldi Stores (Ireland) Ltd and Aldi GmbH & Co Kg against Dunnes Stores.

Aldi alleges Dunnes, on dates unknown and on dates in October and November, infringed Aldi trademarks by displaying banners in several Dunnes’ supermarkets, including in counties Cork, Kerry, Kildare, Louth, Offaly, and Waterford, containing the words “Lower Price Guarantee” and “Guaranteed Lower Prices on all your Family Essentials every week”.

Aldi alleges the banners failed to comply with the Consumer Protection Act 2007 and the European Communities (Misleading and Comparative Advertising) Regulations 2007, on grounds including that they failed to objectively compare one or more of the relevant and verifiable features of the Dunnes’ products with those of Aldi Ireland.

The banners also conveyed the impression that Dunnes’ products generally, or its “Family Essentials” range, were cheaper than those of Aldi Ireland, when there was “no basis” for such a claim, Aldi contends.

Aldi alleges Dunnes has run a comparative advertising campaign since Oct 2011. It claims that, between Oct 2011 and 2012, it identified three instances where Dunnes used promotional material featuring Aldi marks which, Aldi said, breached regulations. Aldi had complained but not taken the matter further as it then appeared the instances of infringement were on a relatively small scale, it said.

In June, it learned Dunnes was displaying shelf-edge labels in its Newbridge store containing the marks and the words “Lower Price Guarantee” and “Always Better Value”.

Other labels compared some Dunnes products with Aldi products that were not proper comparators.

In those circumstances, solicitors for Aldi wrote complaining to Dunnes on a number of occasions, but Dunnes had not made any attempt to explain or justify its conduct, Aldi said. The proceedings were initiated after Aldi became aware of other banners in Dunnes’ outlets relating to the “Family Essentials” range and featuring the words “Lower Price Guarantee.”