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Tesco scores a PR own goal in price war

25 March 2011

In a response to Asda’s Price Guarantee promotion, Tesco’s PriceCheck scheme promised to refund shoppers double the difference, if they could show that the products they bought at Tesco were on sale for less in Asda. However Tesco has now changed the offer to limit refund vouchers to a maximum of £20 per shop.

The reason? It seems that some customers were making money out of Tesco by specifically seeking out products which a competitor had on promotion. One consumer claimed to have made £600 from the promotion already.

Tescos said that fewer than one in 5,000 customers had been awarded vouchers over £20. However Asda took the opportunity make this statement:

“If you claim to be the cheapest, call me old-fashioned, but it helps to really be the cheapest.”
The moral of the story? Make sure you think carefully and get your terms and conditions right BEFORE you go to the market with a promotion!

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