Sibling Squabbles Target sues rival discounter K-mart over adcampaign Target Corp. (Minneapolis) has accused Kmart Corp. (Troy,Mich.) of lying to consumers in a nationwide advertising campaignthat compares Kmart prices with those of competitors. The lawsuitfiled in the U.S. District Court in Minneapolis accuses Kmart offalse advertising, consumer fraud and unlawful trade practices.
In Kmart's “Dare to Compare” ad campaign, the retailer utilizesin-store signs to contrast Kmart's prices to those of retailers likeTarget. Target's complaint says that the signs are “deceptive, rifewith errors and provide no meaningful information to consumers.”James Hale, Target's executive vp, hired an independent research firmto audit Kmart stores and document the errors. According to Hale, 74percent of Kmart's price comparisons between Kmart and Target wereerroneous.
Kmart defended itself in a written statement to the public. “Underthe `Dare to Compare'program, prices on the same item are featuredon our shelf along with a date of comparison and the amount saved,”the statement reads. “It is unfortunate when a competitor has toresort to needless, costly litigation when they discover that theyare falling behind in pricing in the retail arena.”
Target has claimed irreparable harm to its business and seeksreimbursement for the costs of its lawsuit and damages in a jurytrial. The corporation has asked that the court order Kmart to removeall signs comparing Kmart and Target prices from its stores.