The National Advertising Division, administered by the Council of Better Business Bureaus, recommended Rochester, N.Y.-based Wegmans alter its advertising after a challenge by Costco Wholesale Corp., Issaquah, Wash.
The issue stems from comparison shopping signage in stores that Costco says did not represent a true comparison, making certain Costco products appear more expensive, and that consumers don't need to do their own comparison shopping, according to a news release from the National Advertising Division.
Costco challenged these items from Wegmans signage:
- “Who has time to comparison shop? We do. We check hundreds of prices each week so you don't have to.”
- “Don't shop around town…shop at Wegmans and save.”
- “Prices checked on [date].”
Following investigation, the National Advertising Division said that weekly price-checking is “in keeping with precedent established by the Federal Trade Commission” and that one week is a reasonable period of time to price check.
The organization recommended that pricing claims:
- Be accompanied by a clear, conspicuous and prominent disclosure of the date of the comparison shopping strategy
- Include a clear statement that prices are subject to change
- Compare prices of identical products, and when identical products are not available, point-of-sale display note that comparison is not applicable or describe more accurately the products beign compared.
The organization also recommended Wegmans discontinue using “Don't shop around town…shop at Wegmans and save” be altered to “Shop at Wegmans and save” because the previous phrase instructs consumers not to comparison shop.
Wegmans, according to a news release, said the company “appreciates, and will comply with, each of the NAD's helpful recommendations. For example, Wegmans agrees with the sensible suggestion that it modify certain language in favor of the succinct and accurate phrase ‘Shop at Wegmans and save.'”