ASA refers bogus charity leaflet to OFT

15 October 2004

The Advertising Standards Authority (ASA) has asked the Office of Fair Trading (OFT) to consider taking legal action against Olonex, a company that collects unwanted clothing for distribution in Eastern Europe, under the Control of Misleading Advertisements Regulations (1988).

The Authority upheld complaints concerning a leaflet distributed by Olonex in February 2003. The Authority considered that the leaflet implied that Olonex was a registered charity, and did not make clear that the company would sell donated clothing for profit. The advertisers did not respond to the ASA's enquiries. Despite the adverse ruling, the ASA has been concerned to see that problematic leaflets are still being distributed.

Commenting on this latest referral, the ASA's Director General, Christopher Graham, said: "This company has shown that it has a cynical disregard both for consumers and the truth. Olonex has not only refused to cooperate with the ASA during its investigation of complaints but has continued to distribute leaflets that will mislead consumers, exploiting their generosity and goodwill. The self-regulatory system rarely needs to resort to its legal backstop of referring advertisers to the OFT, but we will do so if problematic advertising continues to appear after an ASA ruling against it. "

The ASA issued a warning to consumers about this type of advertising in December 2002, following complaints from consumers concerned that the advertisements implied that the companies behind them were registered charities, rather than commercial companies.