Food & Beverage Litigation Update | June 2017 #4

Shook, Hardy & Bacon L.L.P.

NAD Says Aldi Should Change Savings Claims Ads -

The National Advertising Division (NAD) has recommended that Aldi, Inc. discontinue advertising based on a “market basket” comparison that claims consumers could save more than 50 percent by buying Aldi brands instead of namebrand products at other grocery chains. Texasbased HEB Grocery Co. first challenged print ads published in Houston then later added a challenge to print advertising outside Texas as well as in Facebook and YouTube ads. HEB challenged whether the ads “adequately informed the consumer of the basis of comparison and whether the advertiser’s broad savings claims were supported.” NAD found that where percentage savings claims did disclose the basis of comparison, the “disclosures were vague and nonspecific” and did not clarify that the achieving the advertised savings would require switching from name brands to Aldi’s house brands. Further, NAD found insufficient evidence to support Aldi’s claims that consumers would “always” save up to 50 percent.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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