Tesco and Sainsbury's clash over 'misleading' Price Promise

Sainsbury's tried to challenge Tesco over its price comparison scheme and lost. But what does this tell us about price versus ethics when it comes to food?

Tesco has claimed victory over rival supermarket Sainsbury’s, which accused it of a ‘misleading’ Price Promise scheme.

Sainsbury’s said the Price Promise was unfair because it didn’t account for where products came from or how they were produced.

But the Advertising Standards Authority (ASA) rejected the claim and said it was happy Tesco had taken these elements into account.

Price Matching

With the Price Promise the same basket of goods from the leading supermarkets are compared and the difference is given back to the customer in the form of a token or voucher.

Explaining the scheme, Tesco says: “You won’t lose out on big brands, own-label or fresh food.” But Sainsbury’s said similar items shouldn't be compared if provenance and ethics weren’t taken into account.

Everyday Value ham from Tesco was used as an example. It’s produced in the European Union, but the same product from Sainsbury’s is made in the UK. So while both packets of ham had the same price tag, Sainsbury’s argued they couldn’t be compared fairly.

Tea bags were also picked out because those from Sainsbury’s are Fair Trade while those from Tesco are not.

But the ASA ruled in favour of Tesco. It said: "While we acknowledged there would be differences in animal welfare and country of origin for the ingredients, we were satisfied that Tesco had taken those elements into account when identifying and matching products and had compared on the basis of them meeting the same need.”

What the supermarkets say

Mike Coupe, commercial director for Sainsbury’s, said in light of the recent horse meat scandal (which Sainsbury’s managed to steer clear of) Tesco had started recasting its ethical image through advertising campaigns focusing on fresh produce.

However, he argued that it was unethical for the supermarket to be promoting fresh produce on one hand - such as with Tesco's Love Every Mouthful campaign - and also include non-ethically sourced products in its Price Comparison. 

“By failing to compare own brands fairly it is taking power away from customers to make accurate and informed choices about the food they put in their baskets. Worse, it undermines their ability to make a choice based on the values they believe in,” he said.

However, David Wood, spokesperson for Tesco said he was delighted with the decision from the ASA and was keen to highlight the benefits of the Price Promise scheme.

Price comparison

Most supermarkets now use some kind of price comparison scheme for shopping in store and online. This is a good way to compare prices although it’s normally just on own-brand goods, as our article, Tesco launches new Price Promise scheme, explains.

I looked at the costs from individual supermarkets, on a range of basic goods, to find out how the prices matched up. Morrisons comes out at the cheapest supermarket, based on these specific items, followed by Asda, then Sainsbury's. Waitrose is the most expensive, with Tesco in second place.

However, although the basket from Morrisons was the cheapest, the supermarket doesn't display its prices online and these were supplied directly by the shop.

*source:Mysupermarket.com

Ethics versus cost

This ruling is just the latest example of the ongoing competition between the supermarkets, and their fight for market share.

However, it’s also interesting because it brings up the question of food ethics. Incomes are being squeezed left, right and centre at the moment. As a result basic goods are becoming more popular because they are cheaper.

In this case I think Sainsbury’s has a point. After the horse meat scandal people are more aware of where their food comes from and I think supermarkets should be working on being more transparent about the ingredients in their produce.

If something is produced ethically, and sourced from British farmers, then it shouldn’t be compared with another product which doesn’t adhere to these standards. It also highlights the decision many people have between choosing food which is ethically sourced and food which is cheap. This shouldn't be a choice we have to make and in the examples given by Sainsbury's it isn't.

This news also raises the question of how much people care about where their goods are produced. Buying items like free range eggs and Fair Trade tea is a must for me although these are generally more expensive. But instead of spending more, if I can’t afford a free-range chicken, for example, I just won't buy one and I'll have less meals with meat in. However, among my friends, at least, I'm in the minority here as most would prioritise cost over any other factor when buying at the supermarket.

Would you spend more on something because it's Fair Trade? Or would you be happy buying battery-farmed chicken because it's cheaper? Let me know in the comment box below.

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