Aldi reprimanded for Texas ads

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Aldi reprimanded for Texas ads

06/26/2017

The National Advertising Division (NAD) has recommended that Aldi stop running ads in print and on YouTube in Texas telling grocers there that they can save up to 50 percent on their grocery bills by shopping at Aldi instead of Kroger, Walmart and H-E-B Grocery, according to MediaPost. NAD recommended that Aldi stop running the challenged ads and “ensure that future price comparisons clearly define the basis of comparison, are limited based on the scope of the comparison.”

San Antonio, Texas-based H-E-B challenged the ads to the NAD, a self-regulatory unit administered by the Better Business Bureau. HEB said Aldi's ads were problematic for several reasons, including that the claims regarding discounts were based on comparisons between Aldi's own private label brands and national brands.

According to MediaPost, HEB alleged that it has three competing private brands for most of the products advertised by Aldi, and that HEB's prices are either similar to or cheaper than Aldi's private-label brands.

The NAD said if Aldi is comparing its prices to competitors that sell their own store brands, Aldi should "avoid the implication ... that the competitor does not make a private label product.”

Aldi said it plans to follow the recommendation, but will also appeal the decision to the National Advertising Review Board, according to the NAD.