Best Buy Complains About Walmart's iPhone 5 Ads

Posted January 4, 2013 at 5:06pm by iClarified | Please help us and submit a translation by clicking here | 12170 views

Best Buy has complained to attorney generals in more than half a dozen states about allegedly inaccurate product ads that targeted retailers including Toys 'R' Us and Best Buy, reports the WSJ. The ads are said to have cited inaccurate prices and compared different products.

Walmart spokesperson Steven Restivo defends the ads saying, "We know competitors don't like it when we tell customers to compare prices and see for themselves. We are confident on the legal, ethical and methodological standards associated with our price comparison ads."

Best Buy said some of Wal-Mart's promotions, including a deal on the iPhone 5, had a measurable effect on its profits due to a price-match guarantee that requires the retailer to match the price of competitor's ads. Best Buy said it lost about $65,000 in profit the day Wal-Mart's promotion first ran on Facebook, because it was compelled to match Wal-Mart's advertised $150 price, even though it concluded that Wal-Mart didn't actually have a sufficient number of iPhones available.

Responding, Walmart told the WSH that it shipped double the amount of iPhones during the promotion and that it was 98% in stock at stores that carried it.

Just before the holidays Walmart discounted the iPhone 5 further to $127.

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jeffreywilliam - May 25, 2014 at 9:55am
Is the ads also appeared in any print media? if so that could be the sample prints and strong legal basis that the complainants can hold onto. If not, those ads in social media perhaps already gone after this issue appears and that might be hard to recover unless requested the caches from search engine responsible.
Mick jones - January 6, 2013 at 5:31pm
Best Buy has leadership, marketing, inventory and mangement problems it' need to focus on. Then they possibly can get the chan to become relevant in American retail again, if now another will crumble to the Great Wal-Mart.
Guest - January 4, 2013 at 11:05pm
Isn't the price match only against 'in-stock' items? Here in Canada Bestbuy and Futureshop will check competitor's stock before giving a price match.
Stephen - January 5, 2013 at 8:29pm
No, although the policy states that it's only if it's in-stock, but in practice stock really isn't checked, all they check is the ad for the price only. In the states, to do a price match, we need to bring in a printed ad of said advertised lower price or a printout of advertised price from the competitor website (or show them on your mobile device). That is all they do, no stock check.
Steve Balls-in-my-mouth-mer. - January 4, 2013 at 8:49pm
The complaint isn't the pricing so much. The real problem Best Buy has an issue is that Walmart is advertising low prices without them having sufficient stock, therefore Walmart sells out its small batch and customers wanting to take advantage of the price go to Best Buy and price match it there since Best Buy has way more stock than Walmart. It's a smart tactic, sell low when you're low on stock and your competitors have lots of stock. You lose way less money than your competitors are losing.
bmark - January 4, 2013 at 7:15pm
Sour grapes Best Buy! You going to complain about undercutting your prices on the Internet as wel?
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