ASA takes action to end misleading promotion

14 April 2005

The Advertising Standards Authority (ASA) has asked the Office of Fair Trading (OFT) to consider taking legal action against Tower House Promotions Ltd, an advertiser who runs prize promotions, under the Control of Misleading Advertisements Regulations (1988) as amended. Tower House Promotions Ltd have continued to run their promotion despite the ASA upholding complaints against them in September 2004 on the grounds that it was misleading and failed to make clear all terms and conditions.

Tower House Promotions Ltd sell tickets at a cost of £2, for competitions that offer continental holidays as prizes. The promoter claims that the proceeds from the promotion will purchase a 'Mobility Bus' for children with special needs and they invite participants to suggest a 'worthy organisation' that would benefit from the bus. When challenged by the ASA the promoter failed to substantiate that the proceeds went to a worthy organisation. The advertisers were told to withdraw leaflets for the promotion and ensure that future promotions complied with the Code.

Despite this, Tower House Promotions Ltd continued to sell tickets for the promotion. Subsequently the ASA Compliance Team contacted the advertiser asking for immediate written assurance that they would withdraw the leaflet. Although the promoters responded, stating they would seek approval from the Copy Advice team, they did not make the suggested changes and distributed more leaflets which were in breach of the Code. Following further letters from the Compliance Team the advertiser did not respond. This failure to co-operate has led the ASA to take appropriate action.

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.

Of the referral to the OFT, Director General of the ASA, Christopher Graham said, "Tower House Promotions Ltd have had fair warning. Not only have they been given free Copy Advice to help them comply with the advertising Code, they have also had ample opportunity to respond to our concerns. Their failure to co-operate represents a serious problem, not least because they are continuing to mislead consumers. Our referral to the OFT sends out a clear message to advertisers, comply with the Code or run the risk of facing legal proceedings."

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