The one thing you can count on at Poundland – according to its bosses – is that everything costs £1. Except it doesn’t. And now the budget retailer has been told it must drop that claim after selling DVDs and CDs for £2. Today’s ruling by the Advertising Standards Authority is a major blow for the company, which has built its empire on the boast that just £1 can buy anything in its stores. Poundland has been told it must drop the claim 'everything costs £1' after selling DVDs and CDs for £2 . The decision even calls into question whether the budget chain can legitimately continue to call itself ‘Poundland’. Before the advertising watchdog’s ruling, Poundland's website boasted: ‘Everything for £1 was the idea of our founders in 1990 and we’re still true to that vision today.’ Under a heading ‘Our Values’, it added: ‘We’ve grown to be the largest single price value retailer in the UK...We are very proud to offer you a single £1 price, that hasn’t changed since we opened our first store.’ However, people complained to the ASA that these claims were no longer accurate because it was stocking DVDs of blockbuster films in a concession partnership with another firm for £2 each. Poundland defended the breaking of its normal £1 price barrier saying the £2 items were part of a special promotion run at the tills and sold to customers providing they met a minimum spending threshold. The ASA said: ‘They stated that an average Poundland store stocked approximately 4,000 products and that the ‘conditional spend’ promotion was created in response to consumer demand. Poundland has become hugely popular with wealthier shoppers after stocking baking products under the name of actress Jane Asher . ‘In October 2014, Poundland obtained feedback from consumers regarding the promotion and found that a significant proportion agreed that they would buy items from Poundland that cost more than £1, provided they were clearly marked and located in a special place in the shop.’ The company said the stock of £2 DVDs and CDs were on a specific display that was separated from the normal £1 products and there was no chance of shoppers being confused or misled. But that did not satisfy the ASA, which said the claims on the Poundland website suggested that all its products were no more than £1 ‘regardless of whether or not they were sold via a concession arrangement or as promotional goods’. It added: ‘Because that was not the case, we concluded that the ad was misleading.’ Significantly, the ASA said: ‘We told Poundland Ltd that their future advertising must not state or suggest that every item they sold cost £1.’ If this ruling sticks, it will be a heavy blow to one of Britain’s fastest growing retailers. The company recently announced a plan to spend £55million to take over its deadly rival the 99p Stores chain, which will add some 251 outlets to an existing empire of 534 stores. The company, which floated on the Stock Exchange last year, is worth almost £1billion and has become a fixture on many high streets, taking over outlets once occupied by the failed giant Woolworths. It was shunned by the middle classes, at one time, but it is now hugely popular after making a concerted effort to attract wealthier shoppers with baking products under the name of cake maker and actress Jane Asher, a range of well received beauty products as well as gardening and DIY items. Poundland is not the first discount store to fall foul of the ASA. Last October, the watchdog issued a similar ban on claims made by the Poundworld chain. The company was told to stop claiming everything costs £1 after it was found selling more expensive products under the heading ‘manager specials’. These included packs of 100 Finish All-In-One dishwasher tablets for £8.99, £3 for 10 cans of cola and £5.99 for a Sex & the City gift set. Poundland confirmed some ‘special promotion’ items cost more than £1. Currently, it is selling an Easter Bunny toy and a Nivea Skin Set for £3 to customers who spend £3. The firm said it has changed its website claims following the ASA ruling. A spokesman said: ‘Following advice from the ASA on the communication of our special promotions on the Poundland website, we have amended the site and made the special promotions clearer. ‘Poundland sells over 4,000 products at £1, including over 1,000 well-known brands and we are proud of the amazing value we offer, to over 5.5 million customers every week. ‘Our special promotions have been bought by nearly one million customers, and are an additional offer separate to our usual product lines for customers who qualify, by spending £3 or more in-store. 'These items cannot be bought separately. Customer feedback has been outstanding.’
Advertising watchdog ruled Poundland must drop claim everything is £1 . It is a major blow to company which built entire business around notion . Shoppers complained claims were not accurate because DVDs sold for £2 . Poundland defended breaking price barrier if it's part of special promotion . Currently store has an Easter Bunny toy and Nivea Skin Set for £3 deal . It says it has amended the website and made special promotions clearer .