Nettexmedia.com Ltd t/a RedSave.com West House Braeside Business Park Sterte Avenue West Poole Dorset BH15 2BX Number of complaints: 1

Date: 1 October 2008 Media: Internet (sponsored search) Sector: Leisure

Ad
A Google sponsored link stated " 7" Digital Frames £39.99  www.Redsave.com  Free 1Gb SD, slideshow, buy now, only £39.99".

Issue
The complainant objected that the ad was misleading, because the photo frame was only available for £39.99 when customers signed up for a RedSave pass at a cost of £19 per month.

The CAP Code:

7.1;15.3

Response
Redsave said there was limited text space available in Google sponsored links, but they believed the ad included all the necessary information. They said, after consumers clicked through, their website urged them on at least three occasions to read the terms and conditions.  They point out that any purchase was validated only by the customer agreeing to those terms and conditions.  Redsave said they followed the standard e-commerce process to confirm that the customer had understood fully their contractual obligations for the purchase. They added that that included understanding whether they have purchased at the 'Redsave price', i.e. £39.99, or the 'retail price'.  They said their website clearly stated that by purchasing the photo frame at the 'Redsave price' of £39.99 they were entering into a 30 day free trial of the Redsave shopping pass membership scheme.

Redsave pointed out that, after the purchase at the Redsave price, a customer was at liberty to cancel immediately their trial membership within the 30 days, therefore retaining their purchase at £39.99, without having to continue with the membership scheme. Otherwise the customer would pay £19.99 per month for the Redsave shopping pass.  Although Redsave believed the ad did not breach the Code they proposed to change future ads to include the phrase "from only £39.99" as part of the price indication.

Assessment
Upheld
The ASA noted the £39.99 price was only available to those consumers who joined the Redsave shopping pass membership scheme.  Although we noted customers could cancel their membership without charge, we considered that it constituted a significant condition to the availability of the price and should have been indicated in the ad.  We noted Redsave's proposed amendment but considered that it did not go far enough to make clear to consumers that the price was conditional upon membership of Redsave's scheme, which we noted, ordinarily cost £19.99 per month.  We concluded the ad was likely to mislead.

The ad breached CAP Code clauses 3.1 (Substantiation), 7.1 (Truthfulness) and 15.3 (Prices).

Action
The ad must not appear again in its current form. We told Redsave to ensure that future ads gave consumers an indication that membership of their shopping pass scheme was required to obtain the quoted price.

Adjudication of the ASA Council (Non-broadcast)