Irish government challenges Tesco and Dunnes on prices
Court action over alleged underselling
November 3 2003
Ireland’s biggest supermarket chains, Tesco and Dunnes, face court action over alleged breaches of the Republic’s under-cost selling laws.
The Irish Director of Consumer Affairs, Carmel Foley, issued a court summons over the two chains’ discounting of baby food. Selling groceries below cost price is illegal in Ireland under the 1987 Groceries Orders.
In a separate investigation, Foley is looking at whether a frozen foods promotion by Dunnes contravenes the order.
The move was welcomed by trade association the RGDATA, which represents smaller retailers. The body has argued that price cuts by the multiples are affecting other retailers.
Dunnes and Tesco make up more than 50 per cent of the market between them, and both have been vying for market share.
RGDATA director general Ailish Forde said: “It is vital that organisations with such incredible market power are not allowed to abuse this power at the expense of consumers, suppliers and retailers.”
Tesco operates around 80 stores in Ireland while Dunnes has over 120. both operate large-format stores sellling general merchandise alongside food.
