Price war
The two electronics giants have long been at odds with each other with price wars and price guarantees where they pay the difference if the customer gets the competitor’s cheaper product.
Power is the fastest growing electricity giant in the Nordics. The Norwegian owned chain started in Denmark in 2015. In 2017, the first POWER stores opened in Norway, and today the chain can also be found in Sweden and Finland. POWER today consists of 269 warehouses and 6,000 employees in the Nordic region.
In contrast, Elkjøp Nordic is one of the largest electronics chains in the Nordics, with more than 400 warehouses spread across Norway, Sweden, Denmark, Finland, Iceland, and elsewhere in the Nordics. They have more than 10,000 employees and a turnover of several billion euros per year, which makes them a major player in consumer electronics in the sector.
Allegations of fraud
The now-expanding fight between the two electronic chains is taking place in Denmark, where the Danish Energy branch has reported Denmark’s Elgiganten to the police – which is part of Elkjøp group and sister company of the Norwegian Elkjøp. The reason is that Power believes that the competitor has deliberately misled the prices. They refer to 92 examples of incorrect prices in the group’s latest tender sheet published in Odense.
“We have reported them to the police because we have become aware of several errors in their offer page. These are not small errors, there are errors in more than 30 percent of their ads”, says Jesper Boysen , Head of Power to DR.
What do you want to achieve with this police report?
“Credibility. Consumers need to be able to trust the marketing they get through the door”, said Jesper Boysen.
Risk fine
DR has seen the police report submitted by Power to the Copenhagen Police, and has asked Aalborg University marketing law professor Jan Trzaskowski to evaluate the examples shown in the report.
“This appears to be the wrong normal price and the wrong savings quoted”, he says after looking through the police report.
The professor emphasizes that it is essential that consumers can trust the prices indicated in advertisements. And it can be punished if you do not comply with the relevant sections in the field.
“If it turns out that the courts believe that Elgiganten has broken the law, they risk a fine,” says Jan Trzaskowski.
Waiting for the situation
The electricity giant confirms that they have received the report, but will not comment on the specific allegations until they have received more documents and will carry out further research into the matter.
According to Danish TV2, the Elgiganten has previously paid a fine of NOK 300,000 for lying about past and current prices.
2024-10-07 18:37:16
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