The National Advertising Division (NAD) of the Council of Better Business Bureaus and H-E-B Grocery Co. are challenging Walmart ads. The Walmart ads in question tell consumers if they spend $100 a week on groceries at a supermarket, they could save on average over $700 a year buying groceries at Walmart.
H-E-B is also challenging the Walmart notion of “unbeatable prices,” which the grocery chains says is interpreted by consumers as a lowest-price guarantee.
After H-E-B made its claims against Walmart, NAD conducted a study of Walmart’s ads and concluded the following: Walmart could indeed support its “unbeatable prices” advertising claims, but it should clarify its price-matching disclosures in ads where it uses the “unbeatable” claim. NAD also says Walmart should discontinue its $700 grocery savings claim because there’s no evidence supporting the claim. The landscape of grocers varies throughout the United States, NAD says, so there’s no way Walmart could make such a claim.
Walmart , however, disagrees its claim is not substantiated.
To read a full Reuters story about the debate, click here.