Keeping in touch

24 January 2007

The Committee of Advertising Practice (CAP) has updated its Help Note on Price Claims in Telcommunications Marketing to provide further guidance and explanation to those responsible for creating advertising campaigns for the telecoms industry. CAP will be explaining the new guidance to telecoms industry professionals at one of its Advice:am masterclasses on Wednesday 24 January.

The Help Note on Price Claims in Telecommunications Marketing has been revised twice since it was first launched in 1998. This latest revision takes into account developments in the technology of the industry as well as recent ASA Council rulings that have been published following complaints.

The basic principles of the Help Note remain the same - comparisons should be clear and fair; ads targeted at consumers should quote VAT-inclusive prices; footnotes should be legible; and claims should not exaggerate the availability or extent of benefits likely to be obtained. What has been added is further clarification, along with examples, of what is [un]acceptable in telecoms advertisements.

New to the Help Note is the advice that advertisers: 

• Should not state unqualified claims about calls to UK landline (e.g. "unlimited calls to UK landlines") because they are likely to mislead consumers who assume they include categories of calls that often excluded from the price plan, such as non-geographic or internet calls).
• Should state in the body copy of ads if consumers need to continue to pay rental to a third-party line provider to access a call service. Those offering voice-over IP services do not need to state that line rental must be paid to a third party, but should state in the body copy that broadband is required to make calls.
• Should not describe indidivual elements of a package as "free" if the cost of that element is included in the package price. Instead these elements should be described as "inclusive" or offered "at no extra cost". 
• Can describe an aspect of a service as "unlimited" despite the existence of a fair-usage policy providing that the fact that the policy exists is stated in the ad. 
• Can compare their breakthrough technology with a competitor's existing technology, even if the competitor offers similar breakthrough technology. However, the new product must meet the same needs or be intended for the same purpose as the existing service under comparison and ads should state prominently that the competitor offers a comparable breakthrough service or product.
• Note that unqualified savings claims are likely to be interpreted as market-wide total bill comparisons.

Claire Serle, Manager of the CAP Copy Advice team explained that "Advertising in the fiercely competitive telecommunciations market has changed since the introduction of the first Help Note. This new guidance reflects the developments in technology in the sector and consumer knowledge of what is on offer. Further advice for non-broadcast advertisers is available from the CAP Copy Advice team on 020 7492 2100."

The Advice:am seminar for the telecoms industry forms part of the Advice:am seminar programme - a series of master classes delivered by CAP - giving advice and guidance to marketing professionals on specific advertising matters.  Advice is also available on non-broadcast advertising matters from the CAP Copy Advice team on 020 7492 2100 or copyadvice@cap.org.uk.   

To view the Help Note please click here.