ASA Adjudication on Energy Home Improvements (UK) Ltd

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A circular, from Energy Home Improvements (UK) Ltd, was headed "SAVE OUR PLANET ENERGY EFFICIENCY CAMPAIGN 2008 ENVIRONMENTAL CAMPAIGN 2008 ENERGY HOME IMPROVEMENT UK GRANT / SUBSIDY". Further text stated "Dear Homeowner, There are currently grant subsidies in your area for a number of home improvements, including:- Conservatories Windows and Doors Fascias & Soffits and roof line replacement Central Heating - Boilers & Full Systems Extensions Garage conversions Environmentally Friendly Decking To Claim your grant subsidy please telephone one of our advisors on … TELEPHONE NOW TO CLAIM YOUR SUBSIDY AS ONLY LIMITED FUNDS ARE AVAILABLE IN YOUR AREA".

Issue

1. Lancashire Trading Standards challenged whether the circular misleadingly implied the home improvement grant subsidies were Government funded.

2. The ASA challenged whether it was clear the circular was a marketing communication as the advertisers' identity was not clear.

CAP Code (Edition 11)

Response

Energy Home Improvements (EHI) did not comment on the complaints specifically, but explained that they had incorporated the EHI company name onto their leaflet in accordance with guidance from the ASA.

Assessment

1. & 2. Upheld

The ASA noted the text "ENERGY HOME IMPROVEMENT UK GRANT / SUBSIDY" was clearly stated. We considered, however, that it was not clear to consumers that that represented the company name or that the grant subsidy being suggested was being offered from that organisation. In addition, we noted further text stated "ENERGY EFFICIENCY CAMPAIGN 2008 ENVIRONMENTAL CAMPAIGN 2008 ... There are currently grant subsidies in your area ... to claim your grant subsidy ... TELEPHONE NOW TO CLAIM YOUR SUBSIDY AS ONLY LIMITED FUNDS ARE AVAILABLE IN YOUR AREA". We considered that consumers were likely to assume from this wording, in the absence of clarification otherwise, that the home improvement grant offered was part of a government initiative.

Furthermore, although reference to the company name was made, text stated "ENERGY HOME IMPROVEMENT UK", we considered that readers who were not already aware of EHI were unlikely to understand that that text represented the name of a marketer and that the purpose of the circular was as a marketing device on behalf of EHI.

We concluded that the circular was likely to mislead both about the source of the grant subsidies offered and the purpose of the circular.

On points 1 and 2, the circular breached CAP Code clauses 7.1 (Truthfulness) and 22.1 (Recognising marketing communications and identifying marketers).

Action

The circular should not appear again in its current form. We told EHI to amend their marketing material to clarify that the grant subsidy offered was to be funded by them and to ensure that their company name was clear to consumers to avoid any ambiguity about the purpose of their communication.

Adjudication of the ASA Council (Non-broadcast)