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Thursday, 20 September, 2001, 19:00 GMT 20:00 UK
Asda fined for 'misleading' customers
Asda shop
The supermarket used outdated price comparisons
The Asda supermarket chain has been fined �9,000 for "misleading" customers over price reductions.

The Asda supermarket in Hellesdon, Norwich, used outdated figures for the original prices of goods in making price comparisons in a discount promotion, the court heard.

District Judge Patrick Heley said the practice would have significantly "misled" customers.

The supermarket was found guilty of nine counts of breaching the Consumer Protection Act and was fined �1,000 for each breach and ordered to pay more than �5,000 in costs.

Tesco complaint

Norfolk trading standards officers began an investigation of pricing at the outlet after a complaint by rival supermarket, Tesco.

Asda shopper
Shoppers would be 'misled' by pricing

Officers monitored prices over a year of a range of 46 goods that were part of Asda's "Roll back now even lower" offer.

Miles Bennett, prosecuting, accused the store of attempting to persuade shoppers to believe it had made instant price cuts on goods.

But the figures used in the price comparison referred to amounts charged over a year ago, he said.

In one case no discount was ever observed by officers.

He said: "The 'roll back now even lower' price for Asda crisps was �1.15 but the crisps had been available for �1.15 for the last eight months."

He said the store was entitled to state there was a price reduction but in this case there had not been a reduction for a very long time.

'Wrong' policy

The court also heard that some supermarkets reduced prices of goods for a very short period before increasing them again although Asda said this was an allegation never levelled at it.

"We've never done it," a spokeswoman said.

The supermarket had been charged with 11 breaches of the Act but was found not guilty on two counts.

Judge Heley said that although regular customers would know what the store was doing others would be significantly "misled".

'Common practice'

But Asda's trading and consumer law manager, Gordon Madden, justified the practice claiming that the discount scheme targeted items that people bought regularly.

"The standard price of a product was taken and then driven down," he added.

Rachel Fellows, a spokeswoman for Asda, said the supermarket's pricing policy had now been changed so that a repetition could not occur.

"We are sorry if anybody felt they were misled, that was not our intention.

See also:

15 May 01 | Business
Asda to create 10,000 jobs
03 Jan 01 | Business
Asda to create 5,000 jobs
21 Dec 00 | Business
Asda: 'Now number two'
10 Jan 00 | Business
Asda to create 6,000 jobs
14 Jun 00 | Business
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