CAP and BCAP guidance on "free" claims in advertisements
14 November 2007
CAP and BCAP have launched new Guidance on the use of “free” in marketing communications. It should help you develop eye-catching campaigns with confidence that you can justify “free” claims whatever the medium.
The Guidance explains the CAP and BCAP Codes and how they should be interpreted. The CAP, TV and Radio Codes have very differently worded rules about the use of “free” but the three Codes have the same effect in practice. This is the first time CAP and BCAP have produced joint Guidance after working together to agree a common interpretation.
Some people think “free” should be used only for things that are given away for nothing. But “buy one get one free” offers and claims like “free CD with Saturday’s paper” are tried-and-tested marketing techniques that consumers are familiar with. The ASA and the previous regulators of broadcast advertisements have always allowed marketers to offer a “free” item to customers who buy another product, provided the marketer has not recovered the cost of the “free” item by inflating the price of the product that consumers pay for.
The ASA has, however, upheld several complaints on the grounds that a “free” item was not really a separate item given to consumers when they bought another item but was instead an element of a package and included in the package price. Over the last few years, pricing structures in some sectors have become more sophisticated, making it difficult for consumers – and regulators – to tell what is included in the price and what is given as a free “extra”. For example, in the telecoms sector, consumers can often choose to combine several products for a single price. The new guidance will help marketers to tell whether elements of combinations are free or paid-for.
The Guidance draws heavily on recent ASA adjudications. In one respect, though, it marks a change in direction for the ASA. The Guidance explains that, if consumers can choose whether or not they take a certain element of a combination and pay the same price regardless, the marketer may describe the optional element as “free”.
Read the Guidance in full.