Rami Levy is a leading supermarket chain. They produce a wide range of own-name products that are cheaper than the brand leaders and which they claim are of similar quality and taste.
Now the issue has taken a different direction. A soldier, Afik Lahav, has filed a class action suing the saupermarket chain for 147 million Shekels.
Class Actions have become a common way to deal with trading issues. If successful, the complainant and his lawyers will receive a hefty payout for their work. However, all customers of the chain are expected to benefit by receiving shopping vouchers that are redeemable in the stores or a similar payout.
In addition to the various products discussed in the links, this post is illustrated by a photo showing Rami Levy’s own brand Ketchup on the left, and Osem’s Ketchup, the leading Israeli brand (with a higher market share than Heinz) on the right.
Dr Tami Friedman, a consumer psychologist, claims that Rami Levy creates confusion and misleads by copying the packaging of market leaders. Rami Levy responded to Y-Net who reported the class action being filed, that they would respond in Court, and that their own label products have had significantly increased sales in recent years, indicative of them being economical and of high quality.