Attention all marketers: flight offer 2-4-1 has now been cancelled...
26 October 2004
As regular readers of CAP Update will remember, earlier in the year we reported that prices quoted for flights must include all non-optional taxes and charges payable at the point of purchase. That was to ensure that, if consumers were expected to pay for taxes and charges, misleading price indications such as "free flights" and "fly for a £1" were no longer featured in promotions. The rule applies not only to airlines but also to anyone either selling flights or offering them as an incentive to buy other products.
On the whole, CAP's action in the area has been effective - with tax-exclusive advertising rapidly disappearing. Other problems that recently had to be tackled, however, were the use of words that implied that flights were "free", "two for the price of one" offers and "buy one get one free" offers.
A national newspaper recently ran a front-page "1,000,000 flight giveaway" offer. Because consumers could not get flights without paying taxes and charges, the ASA concluded that, notwithstanding an explanation of the charges inside the paper, the implication that the flights were free was misleading. It told the promoters not to claim or imply that flights were given away, unless they could prove that no taxes or charges were passed on to consumers.
"Two for one" and "buy one get one free" offers have also come under the spotlight. They are a mainstay tool in sales promotions but if consumers have to pay the taxes and charges for the second flight it is not "free" and consumers are not getting two flights for the price of one. So, those offers may be made only if promoters are prepared to bear the cost of taxes and charges on the second flight.
So, how can you offer effective flight promotions to consumers? Our advice is to stay clear of implying that the consumer will get a "free" flight and use terms such as "bargain", "cheap" or "tax-only" flights. Also, offer two-for-one flights only if the consumer pays nothing for the second. As always, consult the CAP Copy Advice team if you are unsure and want to stop your promotion being grounded before take-off...
Related Codes:
- 15.2 Prices quoted in marketing communications addressed to the public should include VAT and other non-optional taxes and duties imposed on all buyers. In some circumstances, for example where marketing communications are likely to be read mainly by businesses able to recover VAT, prices may be quoted exclusive of VAT or other taxes and duties, provided prominence is given to the amount or rate of any additional costs.
- 32.1 A free offer may be conditional on the purchase of other items. Consumers' liability for costs should be made clear in all material featuring the offer. An offer should be described as free only if consumers pay no more than:
- a) the minimum, unavoidable cost of responding to the promotion, eg the current public rates of postage, the cost of telephoning up to and including the national rate or the minimum, unavoidable cost of sending an e-mail or SMS text message
- b) the true cost of freight or delivery
- c) the cost, including incidental expenses, of any travel involved if consumers collect the offer.