ASA clamps down on misleading promoters

06 January 2005

The Advertising Standards Authority (ASA) has asked the Office of Fair Trading (OFT) to consider taking legal action against Fones4Free.com, a web based company who specialise in providing mobile phones, under the Control of Misleading Advertisements Regulations (1988) as amended. Fones4Free.com are running a “free” flights promotion on their website despite being asked to withdraw it by the ASA on the grounds that it is misleading.

The ASA Compliance Team contacted Fones4Free.com in September 2004 asking for written assurance that they would not repeat their promotional claim which offered “free” flights to consumers when they bought certain phones.  The promotion, which appeared in various media such as posters and banner ads as well as on Fones4Free’s own website, has been running over the last four months. It is considered misleading because the flights on offer require the payment of taxes and charges.

Although the promotion was removed from posters and banner advertisements, Fones4Free.com have continued to advertise on their website. Despite attempts by the Compliance Team to contact them and remind them of their obligations to comply with the CAP Advertising Codes, Fones4Free.com have not provided an assurance that the “free flights” claim would be removed from their website.

If an advertiser persistently breaches the Advertising Codes or refuses to cooperate the ASA can impose a range of sanctions. In this case the ASA has referred to the OFT as its legal backstop. The OFT has agreed to consider taking action against Fones4Free.com.

Of the referral to the OFT, Director General of the ASA, Christopher Graham said, “Despite repeated attempts to contact the advertiser and remedy the situation, Fones4Free.com have failed to co-operate with the ASA. Consumers could be misled by this type of “free” promotion which omits compulsory taxes and charges. By referring to its legal backstop power of the OFT the ASA has underlined its commitment to maintaining the highest standards in advertising regulation and making sure advertisers comply with the Codes.”