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NAD Says Wal-Mart's Savings Claims Are Misleading

Wal-Mart ads that imply that the retailer saves the average family that shops in its stores $2,500 a year are misleading, the National Advertising Division of the Council of Better Business Bureaus will announce today. It is a message "for which the advertiser provided no support and, in fact, conceded that there was none," it says.

The claim of saving $2,500 dates to 2005, when Wal-Mart--under mounting criticism from unions and elected leaders over its business practices--commissioned a study of its economic impact on Americans. It turns out you save $2,500 even if you never set foot inside a Wal-Mart. The figure represents the company's calculation of its overall impact on an American household.

A watchdog group that filed the complaint with the NAD has no quibble with what it called the "express claim" of Wal-Mart's ad--that it saves American families $2,500 a year. Wal-Mart says in a statement that it "would be proud" to take the recommendation into account in its advertising, "ensuring that the positive impact we have for all American families is even more explicit."



Read the whole story at The New York Times »

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