Ad watchdog criticizes Asda over price guarantee - Reuters

LONDON | Tue Feb 1, 2011 7:04pm EST

LONDON (Reuters) - The Advertising Standards Authority (ASA) has ruled Asda must make changes to the way it presents its price guarantee, a key plank of the grocery chain's marketing strategy, following complaints from some of its rivals.

The advertising watchdog said on Wednesday that adverts run by Asda following the introduction of its price guarantee in April must not appear again in their current form.

"We told Asda to ensure their ads did not suggest their price guarantee applied to all items, including non-grocery items and items that were specifically excluded, or that their savings claims referred to shopping generally rather than specific items, if that was not the case," the ASA said.

Asda's original guarantee offered to refund shoppers the difference if they could find their groceries cheaper elsewhere.

The chain, a unit of U.S. retailer Wal-Mart, stepped up the campaign last month, offering to refund the difference if it was not at least 10 percent cheaper than rivals.

Tesco welcomed the ASA's ruling, and urged it to reach a similar decision on its complaint about Asda's latest price guarantee.

Wm Morrison Supermarkets had also complained about Asda's original price guarantee.

Asda, Britain's second-biggest supermarket group, said it was pleased that several of the detailed complaints about its price guarantee had not been upheld.

(Reporting by Mark Potter; Editing by Will Waterman