Sainsbury's seeks Tesco review

Sainsbury's is taking its battle against Tesco's Price Promise campaign into the courtroom, by requesting a judicial review against a ruling by the Advertising Standards Authority that rejected its complaint over the Tesco pledge.

Tesco rejects claims its Price Promise is 'misleading'

Tesco has rejected claims made by Sainsbury's that its Price Promise is "misleading".

Tesco's UK marketing director David Wood said: "Sainsbury's argument against Price Promise has been heard and rejected twice already.

A Tesco sign.
Tesco has rejected claims made by Sainsbury's that its Price Promise is "misleading". Credit: Rui Vieira/PA Wire

"Tesco Price Promise offers customers reassurance on the price of their whole shop, in store and online, not just the big brand products.

"When family budgets are under pressure, that is the kind of help customers want and the real question for Sainsbury's is why they aren't trying to do the same for their customers."

Read: Sainsbury's seeks Tesco price row review

Sainsbury's: 'Time to take stand' on Tesco price row

Sainsbury's commercial director Mike Coupe said it was "time to take a stand" on the row over the Tesco Price Promise, which the supermarket believes does not offer a fair comparison.

Mr Coupe said:

"Tesco says that whether, for example, a product is Fairtrade or MSC [Marine Stewardship Council] certified is just a 'minor part' of a customer's considerations - especially for value products. We disagree.

More than ever, customers want to let their values guide them and in price-matching its products with ours, Tesco is - when it sees fit - choosing to ignore factors such as ethical or provenance certification or even country of origin.

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What is the Tesco Price Promise?

The Tesco Price Promise is a money-back pledge that compares the price of goods in a shopper's trolley at the checkout with prices at rival supermarkets Asda, Sainsbury's and Morrisons.

Any difference on comparable products is then refunded in the form of a Tesco voucher worth up to £10.

Tesco's Price Promise compares the price of its goods with prices at Asda, Sainsbury's and Morrisons.
Tesco's Price Promise compares the price of its goods with prices at Asda, Sainsbury's and Morrisons. Credit: Chris Radburn/PA Wire

Sainsbury's believes the pledge misleads consumers because it does not make fair comparisons by, for example, matching products such as its Everyday Value Tea, which is not Fairtrade, with Sainsbury's basics tea, which is.

It added the pledge is also misleading on its basics water, which comes from a spring in Yorkshire, and is compared with Tesco's Everyday Value water, which Sainsbury's claims starts at the mains supply.

Sainsbury's steps up fight over Tesco's Price Promise

Sainsbury's is stepping up its fight against Tesco's Price Promise campaign in a long-running row over comparisons between the two firm's products.

Britain's third-biggest supermarket chain is to take its battle into the courtroom, by requesting a judicial review against a ruling by the Advertising Standards Authority (ASA) that rejected its complaint over the Tesco pledge.

A Tesco and a Sainsbury's sign.
Sainsbury's is stepping up its fight against rival Tesco's Price Promise campaign. Credit: PA/PA Wire

The move comes after Sainsbury's lost an appeal against the ASA decision earlier this month, when a report by the watchdog's independent reviewer Sir Hayden Philips backed the ASA findings.

Mike Coupe, Sainsbury's commercial director, said it was "time to take a stand" on behalf of customers to ensure shopping decisions are not just based on price, but also factors such as ethics and provenance.