ASA Adjudication on Smart Shop TV Ltd

Ad

A TV ad broadcast on Smart Shop TV for a DV7 camcorder.

Issue

The ASA received complaints from 13 viewers.

1.  All 13 said they had placed an order but had not received their goods.

2.  12 viewers said they had tried to contact Smart Shop TV on numerous occasions by telephone, e-mail or fax but received no response to their enquiries.

3.  8 viewers said they were concerned that Smart Shop TV had not refunded their money promptly after they had reported their dissatisfaction with the delay in delivery.

BCAP TV Code

Response

1.  Smart Shop TV explained that they had received a high number of orders for the DV7 camcorder before Christmas and sent out the goods to honour all sales.  However, they had experienced difficulties with delivery over the Christmas period; a number of components had gone missing but, as soon as they became aware of the situation, they withdrew the ad from broadcast and requested extra stock to fulfill the outstanding orders.

2. & 3.  Smart Shop TV did not comment on these points.

Assessment

Smart Shop TV failed to supply the ASA with a copy of the broadcast material or respond satisfactorily to all our enquiries, a direct breach of their broadcasting licence.    

1.  Upheld

The ASA acknowledged Smart Shop TV's comments and understood that they had intended to honour all orders.  We sent details of our complainants to them and acknowledged that they had made efforts to satisfy some of those sales but that they had gone into liquidation before they were able to resolve all outstanding issues.

Smart Shop TV had explained that they had processed the orders and dispatched the goods originally before Christmas.  We considered, however, that we had not seen evidence to show that that was the case.  We concluded that Smart Shop TV had not demonstrated that they were either able to meet any reasonably foreseeable demand or that they had access to adequate stock to fulfil the demand generated by the ad.

On this point, Smart Shop TV breached CAP (Broadcast) TV Advertising Standards Code rule 11.2.2 a (Distance Selling - access to adequate stock to fulfil demand).

2.  Upheld

We acknowledged the difficulties experienced by our complainants in contacting Smart Shop TV, many of whom reported being kept on hold for lengthy periods or not being able to elicit a response at all.  We noted it was a requirement of the CAP (Broadcast) TV Advertising Standards Code that adequate arrangements should exist for a responsible person to handle enquiries during normal business hours, but considered that that had not been demonstrated in this case.

On this point, Smart Shop TV breached CAP (Broadcast) TV Advertising Standards Code rule 11.2.2c (Distance Selling - adequate arrangements to handle enquiries).

3.  Upheld

We acknowledged that, prior to going into administration, Smart Shop TV had attempted to refund money to any ASA complainants who chose not to receive goods in view of the amount of time lapsed.  We understood, however, that not all of the complainants were refunded and also understood that, prior to approaching the ASA, those concerned had not received a refund or response from Smart Shop TV.  We concluded that Smart Shop TV had not demonstrated that they would refund money promptly and in full to those consumers who had exhibited reasonable cause for dissatisfaction with the delay in delivery of their goods.

On this point, Smart Shop TV breached CAP (Broadcast) TV Advertising Standards Code rule 11.2.2f (Distance Selling - refund money promptly and in full).

Action

Although we were concerned by Smart Shop TV's  breach of the CAP (Broadcast) TV Advertising Standards Code and failure to respond effectively to our enquiries, a direct breach of their broadcasting licence, no further action was necessary as they were no longer on air and had already been referred to Ofcom. Ofcom duly revoked their Licences with effect from 4 April 2008

Adjudication of the ASA Council (Broadcast)