Budget retailer Poundland no longer able to boast that every item they sell costs £1

A watchdog today upheld complaints that the high-street chain sold DVDs and other "special" offer items for more than a single pound.

This is despite the poundland.co.uk website saying their "everything for £1" claim was "the idea of our founders in 1990 and we're still true to that great vision today".

It went on: "We are very proud to offer you a single £1 price, that hasn't changed since we opened our first store."

However, three complainants argued that Poundland was misleading customers because it promoted products that cost more than £1 and sold DVDs and CDs for £2.

The retailer said they had priced its ordinary products at £1 but had introduced "special promotions".

These offered customers who spent over a certain amount the chance to buy items that cost more than £1.

The cashier would offer shoppers these promotions at the till meaning they could not inadvertently select it while shopping around the store.

Poundland said the DVD promotion was a trial with a third party and it only occurred in a small number of stores.

They said these products were segregated from all other £1 items and clearly priced at £2.

The Advertising Standards Authority (ASA) acknowledged that Poundland sold the majority of its products for £1.

They also agreed that more expensive items could only be bought from the DVD concession or through the conditional spend promotion.

But it said the website's claims referring to Poundland's £1 "idea of our founders" and "great vision" suggested that every item sold by Poundland cost £1, regardless of whether or not they were sold via a concession arrangement or as a promotion.

The ASA ruled: "Therefore, because that was not the case, we concluded that the ad was misleading."

It said the ad must not appear again in its current form, adding: "We told Poundland that their future advertising must not state or suggest that every item they sold cost £1."

In October, the ASA banned Poundworld's "everything £1" claim after a customer spotted "special" items on sale for £3 and £8.99.