Supermarket Sleuths: Everyone loves an Aldi 'dupe'. But how do they get away with them?

I, like many Aldi Australia loyalists, love an Aldi dupe.

I get to enjoy a version of my favourite products for a fraction of the cost. Sometimes, the dupe is even better than the original, in my opinion.

A "dupe", short for duplicate, is a product deliberately designed to look like an existing one – and sometimes Aldi dupes are so similar, you have to look twice before you realise they aren't the original.

A recent trip to my local Aldi revealed many products I would consider to be dupes.

Take their Alcafe Instant Coffee, which at first glance could be mistake for Nescafe, or the NRG MAXX Chocolate Malt Drink that uses the exact same colours and design as Milo, and, at my local store in Castle Hill, sits right next to original Milo tins.

Meanwhile, Aldi's Wheat Biscuits cereal uses similar colours to Weet-Bix, then there are the Breakfast Bubbles (Rice Bubbles), Fruity Rings (Froot Loops), and Choco Rice (Coco Pops).

The store even dupes Arnott's biscuits such as Arnott's Mint Slice (Aldi's Belmont Mint Cremes), and Arnott's Tim Tam (Belmont Just Divine).

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I also saw dupes of well-known cat food brands, tuna, hair spray, and hot chocolate, not to mention one of my favourite products, the Emporium Selection Club Chedder Cheese, which I love even more than Mersey Valley cheese.

However, one recent dupe led me to think about the ethics and legality of this product strategy.

My children suffer from eczema, to varying degrees, but my eldest is currently in the midst of the most epic head-to-toe flare-up we've ever seen.

We've always used QV products to manage eczema, upon our doctor's advice. So when I noticed Aldi had released a similar product, it gave me pause – particularly because I almost grabbed Aldi's US product before I realised it wasn't QV.

And when it comes to eczema flare ups, you have to be so careful what you use to treat it.

Natalie Murray-Jones, an Australian Intellectual Property Lawyer at brandU Legal, told nine.com.au that for the most part, Aldi's "modus operandi has always been to operate their business with lookalike brands and, for the most part, they have avoided infringing the intellectual property rights of others".

"This is due to its strategic approach of benchmarking its products and packaging against its competitors and market leaders.

"They have mastered the art of selecting trade marks that are not 'substantially identical with' or 'deceptively similar to' existing trade marks and also ensuring that its packaging (well until more recently) is sufficiently different to its competitors to defend legal challenges."

Murray-Jones said there are several instances of Aldi successfully defending themselves against legal claims of Trade Mark Infringement and Misleading and Deceptive Conduct under Australian Consumer Law (ACL), including in Aldi Stores Ltd Partnership v Frito-Lay.

"In the Frito-Lay case, the primary claim against Aldi trade mark infringement under the Trade Marks Act 1995 (Act) of its registered Twisties mark claiming that Aldi's Cheezy Twists mark was deceptively similar," she said.

"Although the trial judge initially agreed with Frito-Lay, the Full Federal Court overturned the decision ruling the marks were not deceptively similar and therefore, no infringement."

More recently, Aldi wasn't successful in Hampden Holdings IP Pty Ltd v Aldi Foods Pty Ltd.

"This involved copyright infringement under the Copyright Act 1968 (Cth) (Copyright Act). The Federal Court found that Aldi had infringed Hampden's copyright by reproducing a 'substantial part of the artistic works' used on the packaging of a children's good products," Murray-Jones said.

"Interestingly, the court gave significant attention to Aldi's process in designing the Baby Puffs packaging noting that Aldi had instructed its designers to use the Hampden's packaging as the 'benchmark' for the design of its own product."

There have been many others. The bottom line being: Aldi's dupe strategy is clearly more successful than not, or they likely wouldn't continue with it.

RMIT Finance and Marketing expert Dr Nadja Dollisson tells nine.com.au Aldi dupes are "not an accident or a side-effect".

"They are a core part of how the supermarket builds trust in its private-label range, signals value and keeps shoppers excited, while skating very close to the edge of what the law and consumers will tolerate," Dr Dollisson says.

"Psychologically, they work because people transfer their feelings about familiar brands straight onto Aldi's lookalikes, especially when the product feels low-risk, but that same tactic becomes much more troubling in baby, medical or 'serious skin' categories.​

"Importantly, these dupes do not operate in isolation. They sit under the broader Aldi brand, which itself carries strong associations of discipline, control and consistency.

"Shoppers are not just trusting the lookalike product; they are trusting Aldi as a retailer.

"That retailer-level trust acts as a safety net, softening perceived risk and making consumers more willing to give unfamiliar private-label products the benefit of the doubt.​"

Dr Amanda Spry, Senior Marketing Lecturer at RMIT University, says Aldi dupes are "so popular and effective because they represent the democratisation of aspiration".

"Consumers can access the look, feel and status of premium brands without the price tag," she said.

"Dupes done well borrow or mimic key brand elements (such as colour palettes, packaging shapes, sensory cues, fonts, and even product names).

"This enables consumers to instantly recognise the original brand being "duped" and the brand elements are a shortcut to quality, style and trust.

"Buying a dupe doesn't make a consumer look like a cheapskate. Instead, it enables them to signal an identity of being savvy and financially discerning. They are also beating the system by resisting the mark-ups set by the original premium brands."

Dr Stephan Dua Modest, a Lecturer in the School of Economics, Finance and Marketing at RMIT, isn't so sure Aldi will be able to continue this strategy.

"While customers enjoy the experience of consuming a high quality product for a significantly cheaper price, Aldi has recently encountered legal challenges for its duping practices," he told nine.com.au.

"The company is now facing multiple lawsuits in different countries, including from brands like Mondelēz International, for packaging their products in a way that deliberately copies its successful brands like Chips Ahoy!, Nilla Wafers, Nutter Butter, Oreo, Premium saltine crackers, Ritz, and Wheat Thins.

"The outcome of these court cases could significantly impact the dupe culture in Australia."

When asked about their dupes, an Aldi Australia spokesperson told nine.com.au the retailer stands by its "exclusive label products".

"At Aldi shoppers are drawn to our unique exclusive label products, which are benchmarked against leading brands to deliver outstanding quality at incredible value.

"We are committed to providing high quality products at the lowest possible prices, allowing Australian shoppers to save without compromising on quality."

Gavin Northey, associate Professor at the Department of Marketing at Griffith University, told nine.com.au: "We have to remember a fundamental aspect of Aldi's appeal is the cost savings and value it offers consumers.

"And remember, Aldi shelves may not carry the national brand that has been copied, so at the point of purchase, there is no direct comparison.

"As a result, consumers might know the brand is a copy, but they appreciate the lower price point and the value provided by a product that is not too dissimilar to the leading brand."

He said Aussie shoppers "absolutely trust Aldi copycat products because of the similarity between the brands and their packaging".

"The visual similarity makes the product feel familiar, and familiarity can reduce the cognitive load consumers experience during the decision. Basically, consumers don't need to learn entirely new visual cues or build trust from scratch.

"Instead, they can leverage existing neural pathways associated with trusted brands.

"In doing so, they use the familiar brand colours as a heuristic that signals quality, albeit at a lower price than the brand being copied. For the consumer, that feels like a win."

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