Kmart Pulls Price-Comparison Signs

Kmart Corp. has removed from its stores its Dare to Compare price promotions after Target Corp. filed a lawsuit accusing its rival of lying to consumers with the advertising.

As a result of Kmart’s removal of the signs, Target withdrew its request for a temporary restraining order that would have required Kmart to take them down. It has not withdrawn the lawsuit, however.

Both companies hailed the decisions Friday as a victory.

James T. Hale, Target executive vice president and general counsel, said shoppers will benefit from the removal of the signs.

Target had said the signs often cited outdated or inaccurate prices from Kmart competitors in making the comparisons.

“It all had to do with competing honestly,” Hale said. “Whenever confidence in any competitor is lost, it results in a loss of confidence for all related companies.”

Kmart officials said in a statement Friday that the study on which Target based its accusations was “seriously flawed” and included numerous errors.

“Kmart is pleased and not surprised that Target withdrew its request for a [temporary restraining order] to restrain Kmart’s advertising,” said Janet Kelley, Kmart’s senior vice president and general counsel. “It is unfortunate when a competitor has to resort to frivolous litigation in an apparent attempt to confuse consumers about their competitive pricing position.”

The complaint, filed in U.S. District Court in Minneapolis, accused Troy, Mich.-based Kmart of false advertising, unlawful and deceptive trade practices and consumer fraud.