Lidl Ceases Broadcast TV Ads in France After Court Ruling

Lidl, the German hard discount food retailer, has announced it will discontinue its advertising on broadcast television in France. This decision comes in the wake of a significant legal setback, as a French appeals court ruled in July 2023 that the company’s advertisements were misleading. The court mandated that Lidl pay €43 million (approximately $50 million) to the French supermarket chain Intermarche due to unfair competition from its ads aired between 2017 and 2023.

In an interview with the trade magazine Strategies, Jassine Ouali, chief customer officer at Lidl France, explained that the supermarket chain will not invest in linear television while facing high regulatory risks. Linear television refers to traditional broadcast channels that operate on a set schedule, as opposed to on-demand services like Netflix. Ouali criticized the current regulations as outdated and suggested they favour traditional media over modern advertising platforms.

The ruling by the Paris appeals court found that Lidl’s television ads were likely to mislead consumers, which the court deemed a violation of French consumer laws requiring products to be available at advertised prices for at least 15 weeks. Lidl, which ranks as the sixth-largest food retailer in France by market share, is currently appealing this decision.

Ouali expressed concern over the implications of this shift, stating, “You just need to know Lidl’s TV footprint to understand that if we stop advertising in French media in favour of players like Google, Meta, Netflix, or Amazon, it will create a problem for media funding.”

Lidl has been a major player in the French advertising landscape. According to Kantar Media, the retailer was the second-largest advertiser in the country across all sectors and media. In 2022, linear television constituted 22 percent of Lidl’s total advertising expenditure, a stark contrast to the zero allocation planned for 2026, as confirmed by a company spokesperson.

As Lidl navigates this complex situation, the company’s future advertising strategy appears poised to pivot towards digital platforms, raising questions about the evolving landscape of media advertising in France and the potential impact on traditional broadcasters.