Lidl, one of the main players in distribution in France, has decided to suspend its investments in traditional television advertising. The German group explains that the current regulations, which are far too strict, make communication on this channel too risky. The executive director of customer relations at Lidl France stated that as long as the legal framework remains restrictive, the company will favour other forms of communication, particularly online videos, which are considered more flexible and adapted to development objectives.
As a reminder, a few months ago, Lidl was heavily fined for business practices deemed deceptive. Lidl had to pay tens of millions of euros to a competitor for advertising campaigns deemed illegal.concerning promotions whose in-store availability was not guaranteed for the period mandated by law. The company is appealing this decision to the higher court.
Advertisements deemed non-compliant with the law
Between 2017 and 2023, Lidl broadcast several hundred advertisements featuring attractive promotional prices. The court ruled that these offers did not comply with the legal obligation to ensure product availability over an extended period, which it deemed to constitute misleading commercial practices and unfair competition.
According to the head of Lidl France, these regulatory constraints are difficult to reconcile with modern business practices. He points out that the current regulations date back to the 1990s and were designed to protect advertising revenue for traditional media, particularly regional newspapers, but that they now pose problems in the face of new communication methods.
The end of an era for television?
The current decree prohibits distributors from promoting time-limited sales campaigns on television, requiring that product availability and prices be guaranteed over an extended period. This rule, considered outdated by several industry players, is regularly criticized for its rigidity in the face of competition from international digital platforms.
Lidl's exit from the television advertising market could have significant consequences for the financing of French media, as the group represents a substantial share of advertising investment in this channel. Last year, nearly a quarter of Lidl France's marketing budget was allocated to traditional television, but the group now plans to reallocate these funds entirely to digital media, while maintaining its commitments to print media.
