John Lewis has recently retired its longstanding “Never Knowingly Undersold” pledge in favour of its existing, everyday “Quality & Value” slogan.
The pledge has been an internal policy since the very first shop was opened by John Spedan Lewis in 1864 but was publicly announced in 1925. The premise of the promise was “if you can buy more cheaply elsewhere anything you have just bought from us, we will refund the difference”. The slogan became an integral part of the John Lewis approach to customer service and pricing and was even printed across carrier bags and receipts.
Whilst the pledge has been a staple part of its consumer marketing approach for almost a century, the rapid growth of online shopping forced John Lewis to caveat the terms of the price promise. John Lewis stated that “we have always matched prices on a like-for-like basis including comparable terms and conditions”, which was then extended in 2010 to including online competitors who also had a high street presence.
During the pandemic, John Lewis has seen a shift in the habits of its customers with reportedly 70% of its sales being online in 2020, compared to roughly 40% the previous year. The company has now taken the stance that it will “proactively lead on great value rather than reacting to other retailers’ price changes”.
Why change the advertising?
Apart from the fact that John Lewis wants to take this opportunity as an angle for launching its new campaign, retaining the strapline but no longer upholding the price promise could easily breach advertising rules. All advertising material must be “legal, decent, honest and truthful” otherwise it will breach the CAP Code (or BCAP Code for broadcast advertising). The vast majority of complaints made about advertising relate to misleading consumers, which in some cases can carry criminal sanctions if Trading Standards authorities take action under consumer protection laws. Section 3 of the CAP Code sets out detailed rules on price promotions and steps that should be taken to ensure they are fair and lawful.
The UK advertising regulator, the Advertising Standards Authority, publishes weekly rulings against brand owners and their agencies who breach the Codes and the press attention from those rulings can be extremely damaging. John Lewis’ transparent approach to the re-brand lets it take control of the shift rather than downgrading its offering by stealth and risking damage to reputation.
What does this mean for the “Never Knowingly Undersold” brand?
John Lewis currently has three UK trade marks registered for “NEVER KNOWINGLY UNDERSOLD” covering an extensive range of goods and services. These provide protection to use of the slogan in respect of a wide range of goods and the services of operating a department store. Those marks are due to expire in 2025, 2026 and 2030 respectively.
It is likely that John Lewis will allow these marks to lapse. However, if John Lewis seeks to renew the marks and, in particular, the mark expiring in 2030 has not been used for a period of five years or more, it would become vulnerable to revocation. This would allow third parties to use the brand without fear of infringement. Furthermore, the fact that John Lewis has publicly dropped the slogan may provide an argument that it has voluntarily surrendered its marks or goodwill.
What is the future for price match guarantees?
As one of the most well-known and long-serving price matches in the UK, it is a wonder whether the remaining high street price promises have much longevity. The retail market has undoubtedly shifted with the times and high street companies are fighting to keep up with the online markets so, while it may not be a thing of the past just yet, there will most likely be a need for heavy caveats within the terms and conditions. It is important for any retailer offering price promises to be clear about the terms of what it is offering in order to avoid being publicly reprimanded or action from Trading Standards.
