Best Buy has filed a complaint against Ultimate Electronics alleging that Ultimate Electronics falsely advertises and misleads consumers to believe that Ultimate Electronics has lower everyday prices compared to Best Buy's prices. According to the complaint, Ultimate Electronics claims that it comparison shops Wal-Mart and Best Buy and adjusts its prices on a daily basis to be lower than either retailer. Ultimate Electronics' advertising contains statements such as "we shop the competition so you don't have to" and "we adjust our prices daily. Contact your nearest store for the lowest prices period." Best Buy has alleged that Ultimate Electronics' prices are "frequently higher than Best Buy's prices for the same products." Best Buy had previously filed a challenge against Ultimate Electronics in the National Advertising Division of the Better Business Bureau regarding the same "lowest prices" claim. The NAD referred the matter to the Federal Trade Commission for review due to Ultimate Electronics' failure to respond to the NAD's inquiry.
TIP: The NAD has previously noted that the rapidity with which prices fluctuate and the difficulty of determining prices of all sellers at all times makes absolute generalized underselling/lowest price claims difficult to make. Companies should also note that a failure to respond to an NAD inquiry may result in the referral of the matter to the FTC, pursuant to NAD policy.