Utilising the Utilities Help Note
07 February 2007
The Committee of Advertising Practice (CAP) has updated its Help Note on Price Claims in Utilities Marketing. The Help Note is designed to aid those who produce non-broadcast marketing material in the utilities sector with interpreting the advertising code.
Two new sections, focusing on “Price Freeze” Products and Switching Sites, have been added to the Help Note that was last revised in November 2003. The update also reflects the changes in marketing techniques used to promote utilities services as well as the decisions made by Advertising Standards Authority (ASA) Council. Marketers need to be aware of how the Code will be applied to these types of claims.
The new sections of the Help Note state that:
• All significant conditions that apply to “price freeze” products, e.g. the date to which frozen prices will be available, must be included.
• If the product is subject to conditions that exclude certain customers or has limited availability, then that should be clear.
• Although it is acceptable to refer to a competitor’s recent price rise, marketers must not misleadingly imply that they have not implemented their own price rises if this is the case.
• It should be made clear if a given price freeze offer depends on consumers signing up to a marketer’s new rates after a price increase.
• Special care should be taken with the use of claims such as “independent” and “comprehensive” if a commercial relationship influences the recommendations made by the switching site.
The basic principles of the Help Note remain the same - savings claims should not be exaggerated; terms and conditions and qualifying statements should be clear. It also outlines the rules relating to Dual Fuel offers, VAT as well as how the law relates to price indications.
Of the updated Help Note Claire Serle, Manager of the CAP Copy Advice Team says “The utilities sector provides consumers with an array of choice but whilst healthy competition is good news for consumers there is a real onus on marketers to ensure their advertisements are not misleading. The Help Note should help clarify how the code is applied and, like our free, expert Copy Advice service, it is designed to keep marketers out of trouble with the ASA.”
Click here to download the Help Note on Price Claims in Utilities Marketing.