Pak’ N Save Advertisements Breach Code Of Ethics
The Advertising Standards Complaints Board has upheld a complaint by Progressive Enterprises that a recent Pak’ N Save
advertising campaign contained exaggerated claims which were misleading to the consumer.
The campaign breached Rule 3 of the Code of Ethics by using research results in a manner which was misleading and
deceptive to the consumer and Rule 2 on the grounds the company made an unqualified global claim (on price) which was
based on a snap shot survey of 30 grocery items, purchased in selected outlets, on a specific day.
In addition Pak’ N Save claimed in its ads it was quoting from an independent survey when in fact it was using a quote
from a short article in a newspaper which, in turn, was a summary of another article in a magazine.
The survey was conducted by the Consumers’ Institute and was not intended for use in advertising or promotional
advertising.
The Board also said the advertisements breached Guidelines (a) and (b), as they were not factual and informative and
likely to mislead the consumer.
Progressive Enterprises Managing Director, Richard Umbers, says his company is pleased the complaint has been upheld. It
is misleading to claim that a snapshot survey of a few groceries from selected outlets on a single day can tell you what
stores have the lowest prices.
“Countdown is aggressively competing on price with Pak’ N Save across the country and shoppers are benefiting day by day
from the price war,” he says.
“We know the Pak’ N Save chain is feeling the heat but there is no reason to deliberately mislead and deceive shoppers.”
Mr Umbers urges shoppers to make their own price comparisons.