Lidl Halts Broadcast TV Ads in France Following Legal Setback

German discount food retailer Lidl announced on March 15, 2024, that it will cease advertising on broadcast television in France. The decision follows a significant legal ruling in July 2023, when a French appeals court determined that Lidl’s advertisements were misleading, resulting in a hefty fine. This shift marks a noteworthy change for Lidl, which is one of the country’s largest advertisers.

In an interview with the trade magazine Strategies, Jassine Ouali, chief customer officer at Lidl France, expressed the company’s concerns about regulatory risks, stating, “We won’t invest in linear TV as long as the regulatory risks are too high, as they are today.” Linear television refers to traditional broadcast channels, contrasting with streaming services such as Netflix, where viewers have the flexibility to watch content on demand.

The court ruling mandated that Lidl pay 43 million euros (approximately $50 million) to French supermarket chain Intermarche, after finding that hundreds of Lidl’s television advertisements aired between 2017 and 2023 were likely to deceive consumers and constituted unfair competition. As a result, Lidl, which holds the position of France’s sixth-largest food retailer by market share, is currently appealing the decision.

French consumer laws stipulate that products advertised must be available at the stated price for a minimum of 15 weeks. Ouali criticized these regulations as outdated and suggested they disproportionately favor traditional media. He noted, “You just need to know Lidl’s TV footprint to understand that if we stop advertising in French media in favor of players like Google, Meta, Netflix, or Amazon, it will create a problem for media funding.”

According to data from Kantar Media, Lidl is the second-largest advertiser across all sectors and media in France. Last year, linear television comprised 22 percent of Lidl’s total advertising expenditure. Looking ahead, the company plans to allocate “zero” budget for linear television by 2026, as reported by a company spokesperson to AFP.

With around 2,400 staff representing 100 different nationalities, AFP remains a leading global news agency, offering fast and comprehensive coverage of significant issues affecting daily life. As the landscape of advertising shifts, Lidl’s decision underscores the evolving dynamics of media consumption and regulatory frameworks in the retail sector.