Wal-Mart Chastised By Better Business Bureau Over Ad Claims
Dow Jones

NEW YORK -(Dow Jones)- Wal-Mart Stores Inc. (WMT) crossed the line by implying it could put a couple of thousand dollars in customers' pockets if they shopped exclusively with the retailer, the Better Business Bureau ruled.

The bureau's National Advertising Division, or NAD, acted after advertisements that Wal-Mart began last year were seen as fostering sentiment that the average American household saves over $2,500 annually by relying on Wal-Mart stores.

The inference is that this can only occur at Wal-Mart stores, and not other retailers, which is misleading, the NAD said.

The NAD's tussle with Wal-Mart was the first time the better business division - which routinely flexes authority over advertisements by companies of all sizes - had to act in regard to such a large dollar claim.

And NAD conclusions were biting. In regard to Wal-Mart's fostering the impression that families would save more by shopping there, rather than at other stores, the company "provided no support and, in fact, conceded that there was none," the NAD ruling said.

But even while the NAD was taking Wal-Mart to task, an irony was occurring. The agency acknowledged that one reason Wal-Mart was unjustified in making any kind of $2,500 claim was because of the impact its own operations have. Retailers in its communities tend to become deeper discounters in order to compete.

Still, Wal-Mart has stopped using the claim in print, flyers and television advertisements, but it can still be viewed on the company's Web site.

The site has, however, been "modified to show that customers receive the benefit of these savings whether they shop at Wal-Mart or not," a company spokeswoman said.

If the NAD feels Wal-Mart has not complied with the ruling it can make a recommendation to the Federal Trade Commission for further action, a NAD spokeswoman said.

-By Karen Talley, Dow Jones Newswires; 201-938-5106; karen.talley@dowjones.com


  (END) Dow Jones Newswires
  04-01-08 1355ET
  Copyright (c) 2008 Dow Jones & Company, Inc.
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