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UK: Sainsbury's and Tesco clash over Price Promise

Tesco has launched a new “Price Promise” initiative in which the UK’s largest food retailer claims it will match the price of branded and non-branded products at Asda, J Sainsbury and Morrisons.

However, Justin King, chief executive of Sainsbury's, said the vast majority of own-brand products are “incomparable” and that the company could report Tesco to the Advertising Standards Authority as it does not believe the comparisons are accurate.

“You can be sure that we will point out to Tesco where their products are unfairly compared to ours,” Mr King, who claimed Sainsbury’s own-label products are “higher quality”, said.

“There are significant conversations about how on earth you truly and fairly compare own-brands.”

However, a spokesperson for Tesco defended “Price Promise”, saying: “It is quite a lot of work for us to do, but we use clear guidelines to ensure the comparisons are fair. Ultimately we do this because it’s what customers want us to do, given that approximately half of the average shopping basket in the UK is made up of own label products.”

Source: telegraph.co.uk
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