Clever wording of advertising claims
23/03/2009

The Advertising Standards Authority of South Africa (ASA) recently ruled in favour of Fruit & Veg City Holdings (Pty) Limited after a competitor complaint was lodged against the group by Shoprite Checkers (Pty) Limited.

The complaint related to a recent television advertisement for Fruit & Veg City Holdings (Pty) Limited in which it claimed to be “the largest retailer of fresh produce in South Africa”.

Shoprite lodged a competitor complaint against the advertisement with the ASA. In essence, Shoprite’s complaint stated that it had been proven in a previous matter brought before the ASA, that Shoprite’s fresh produce sourcing and supply department, Freshmark, was the largest supplier of fresh produce in South Africa and that the retail sales of Shoprite far exceeded those of Fruit & Veg City.

Fruit & Veg City responded that it had amended its previous claim from “the largest supplier of fresh produce in South Africa”, to the current claim, “the largest retailer of fresh produce in South Africa”. Furthermore, the fact that Shoprite’s retail sales are larger than those of Fruit & Veg City was deemed irrelevant, since the fresh produce sector is merely one sector within Shoprite Checkers.

Fruit & Veg City went on to submit information supplied by the Competition Commission which showed that it had a larger market share in terms of fresh produce than all national chains, including Shoprite Checkers. (Fruit & Veg City had been before the Competition Commission when Pick ‘n Pay had expressed a wish to acquire it.)

The complaint was decided on the basis of sections of the Code of Advertising Practice dealing with substantiation of claims as well as misleading advertising.

The complaint was decided in favour of Fruit & Veg City, because the ASA ruled that the claim made was factually correct. It is interesting to note that the ASA found the Competition Commission to be an independent and credible expert in relation to the investigation of the claim.

The ASA went on to say that “It is … doubtful whether it is appropriate to compare a supplier (Freshmark) with a retailer” as Shoprite had done in its complaint.

Whether or not the average consumer would really consider or appreciate the distinction between a supplier and retailer is unclear. However the message to consumers is clear – pay careful attention to advertising claims!