Don't leave Santa short of gifts this Christmas
09 December 2004
The ASA upheld complaints about this ad. Click here to view the full ad
In the competitive retail environment, Christmas is a crucial selling period: what happens over this time not only affects a company’s balance sheet but can also affect its share price. In the rush for sales, however, advertisers should not neglect their obligation to meet the advertising rules.
Don’t get caught out in the Christmas rush
Whether they are using broadcast or non-broadcast media, advertisers should make sure that they have enough stock to satisfy the demand their ads generate for those goods and services. They also need to make sure prices quoted in ads are correct.
A DIY store recently ran a national press advertisement for a promotion offering 10% off home entertainment products. The ad featured a 21” TV for a reduced price of £107.99. The ASA received a complaint from someone who visited several of the company’s stores but was unable to get the product at the advertised price. Despite the advertisers’ assurance that they would make clear in future ads if stock was limited, the ASA ruled the ad breached the CAP (Non-broadcast) Code because they had not proved:
1. they had made a reasonable estimate of the likely response to the offer, and;
2. they were able to meet that response.
Click here to read the ASA’s adjudication
The small print won’t save you
Advertisers should make sure their advertisements are accurate for their lifetime whether the ad appears on air over a weekend, or in a daily, weekly or monthly publication. Footnotes that disclaim responsibility won’t be an adequate get out for advertisers failing to live up to the rules.
A computer supplier advertised one laptop as costing £1499 when in fact the correct price was £2499. The advertisers argued that a disclaimer “Prices, configurations and availability might change without notice…Alienware cannot be held responsible for errors in photography and typography” covered them against mistakes in the prices in their ads. The ASA told the advertisers that this disclaimer did not relieve the advertisers of their responsibility to ensure claims in their ads were true. It told the advertisers to avoid advertising prices that changed from month to month in media with long copy deadlines. It also told them to make sure they held documentary evidence for price claims, another important requirement of the Codes.
Click here to read the ASA’s ruling on this promotion.
Avoid promotions that become flights of fancy
For many people this time of year brings thoughts of holidays in sunnier climes. Promoters of holidays or flights need to ensure their offers don’t fall foul of the rules by having enough availability to meet demand. For instance, if, during a flight or holiday promotion, fewer places are offered at certain times - for example, during the school holidays - this should be made clear in the ad. A promoter who was deemed by the ASA to have got this aspect of their promotion right, still managed to breach the Code, however, because the prices in the ad weren’t preceded by “from” and therefore misleadingly implied all flights throughout the promotion were available for £15.
Click here to read the ASA's Adjudication.
If promoters are unable to satisfy demand for a promotional offer because of an unexpectedly high response or some other unanticipated factor outside their control, participants should be offered a refund or a product of a similar or greater quality and value. The ASA upheld a complaint about a promotion for free DVDs run by a consumer publisher. Click here to read the ASA Adjudication.
One way to prepare for the response to your non-broadcast ad or promotion is to contact the CAP Copy Advice team and make sure you’ve got everything in place to meet the rules.
Revevant Help Notes:
Claims That Require Qualification
Travel Marketing
Relevant Code sections:
TV Advertising Code 5.1
Radio Advertising Code 3 Misleadingness
Non-broadcast rules: see below
Related Codes:
- 16.1 Marketers must make it clear if stocks are limited. Products must not be advertised unless marketers can demonstrate that they have reasonable grounds for believing that they can satisfy demand. If a product becomes unavailable, marketers will be required to show evidence of stock monitoring, communications with outlets and swift withdrawal of marketing communications whenever possible.
This clause has been updated to conform to the Consumer Protection from Unfair Trading Regulations 2008. This clause does not apply to marketing communications that appear after 24 June 2008. See clause 16.4. - 16.2 Products which cannot be supplied should not normally be advertised as a way of assessing potential demand unless it is clear that this is the purpose of the marketing communication.
- 16.3 Marketers must not use the technique of switch selling, where their sales staff criticise the advertised product or suggest that it is not available and recommend the purchase of a more expensive alternative. They should not place obstacles in the way of purchasing the product or delivering it promptly.
This clause has been updated to conform to the Consumer Protection from Unfair Trading Regulations 2008. This clause does not apply to marketing communications that appear after 24 June 2008. See clause 16.5. - 30.1 Promoters should be able to demonstrate that they have made a reasonable estimate of likely response and that they were capable of meeting that response.
- 30.2 Phrases such as "subject to availability" do not relieve promoters of the obligation to take all reasonable steps to avoid disappointing participants.
- 30.4 If promoters are unable to supply demand for a promotional offer because of an unexpectedly high response or some other unanticipated factor outside their control, they should offer refunds or substitute products in accordance with clause 42.5a.
- 42.5 Marketers must refund money promptly (and at the latest within 30 days of notice of cancellation being given) if:
- a) consumers have not received products. If consumers prefer to wait they should be given a firm dispatch date or fortnightly progress reports. Alternatively marketers may, if asked or if stated before purchase, provide a substitute of equivalent quality and price
- b) products are returned because they are damaged when received, are faulty or are not as described, in which case the marketers must bear the cost of transit in both directions
- c) consumers cancel within seven clear working days after delivery (see 42.3a above). Consumers should assume they can try out products but should take reasonable care of them before they are returned (though see 42.6d). Consumers must return the products and pay the costs of doing so providing the marketers made this clear at the latest at the time the products were delivered (though see 42.2i for substitute goods)
- d) an unconditional money-back guarantee is given and the products are returned within a reasonable period
- e) products that have been returned are not received back, provided consumers can produce proof of posting.