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Tesco under investigation by TSO
News
Tuesday, 06 January 2009 12:31

Tesco, is facing two official investigations over claims that it was deliberately advertising cut price alcohol while not having enough stock to meet demand and is set to be investigated by trading standard officers. The allegation was made after Labour MP Rosie Cooper visited a Tesco in Liverpool and found that a bottle of Baileys advertised for £8 was out of stock. Tesco denied that it had deliberately under stocked the product

Trading standards officers have launched an investigation into whether Tesco broke new laws by running special offers while failing to ensure it had enough stock to meet demand.

In a separate move, the Advertising Standards Authority (ASA) is looking into whether Tesco broke advertising rules in the way that it promoted the offers and refused to remove banners at front of stores despite not having the stock to sell.

The investigations are the latest moves as retailers come under increasing scrutiny for the way that they bend guidelines designed to ensure that the public are not misled by bogus sales and money-off deals. Under the Unfair Consumer Practice Directive, which came into force in May last year, retailers are forbidden from advertising goods for which they can expect they have insufficient stock – a practice known as "bait advertising".

Tesco denied that it had deliberately understocked the offer in question. "As you would expect in the run-up to Christmas, these promotions were extremely popular with customers. Additional supplies were ordered in as quickly as possible." Said a Tesco spokesperson.

Liverpool Trading Standards Office confirmed it was looking into a complaint and said that any company found to be in breach of regulations on bait advertising "could face a substantial fine or be at risk of prosecution".

The ASA investigated and rejected two complaints against Tesco last year for allegedly running promotions which were not fully supported.