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Carrefour Fined Over Advertisement

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Carrefour Fined Over Advertisement

According to a report published by Retail Detail Europe, the highly competitive price war in French retail, which is taking place partially televisually, has resulted in a fine for Carrefour.

Intermarché and Carrefour regularly tussle for the top spot on the Fresh retail website QuiEstLeMoinsCher (qui est le moins cher translates as "who is the least expensive"). It had often rated the former as less expensive than the latter.

To react against this publicity, Carrefour claimed on TV adverts that, for a number of products, its rival's prices were between 9.8 and 12.4 per cent more expensive than its own. Intermarché, angered by this assessment, which they deemed erroneous, took the issue to court, following which the promotional material was judged to be "deceptive" and disingenuous.

For declining to adhere to marketing legislation, the Paris Commercial Court issued Europe's largest retailer with a fine of €800,000, which is to be paid to Intermarché. It is possible that Carrefour will appeal, which is its right.

www.quiestlemoinscher.com is the brainchild and property of E.Leclerc, which has over 500 locations in France, and 114 abroad, as of 2012. It permits semi-independent stores to operate under the Leclerc brand.

© 2014 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly

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