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 can not 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 .