ASA Adjudication on Freemans plc

Ad

A national press ad, for a marquise ring, was headed "STRICTLY LIMITED TO ONE PER CUSTOMER, WHILE STOCKS LAST! FREE Ring All you pay for is the postage!".  Below, it stated "Inspired by the glamour of Monte Carlo, the Riviera Cubic Zirconia Marquise Ring is sure to impress, and is yours for FREE* ... THIS IS AN INCREDIBLE OPPORTUNITY to acquire finely crafted jewellery.  Why not send for your FREE* ring today?  You're never under any obligation ... but in one glance, you're sure to fall under the spell of the Monte Carlo Collection.  AS THIS IS SUCH A SPECIAL OFFER, stocks will be high in demand so place your order today to avoid disappointment".  Small print on the order form stated "*I will only be charged £3.95 postage and packing, irrespective of any other order placed with Kaleidoscope.  Accepting this ring gives me the option to examine matching jewellery in the Monte Carlo Collection.  I have no obligation to purchase anything now or in the future ... For each piece I decide to keep, I will pay only £29.99 plus £3.95 postage and packing.  All charges for this programme (including the initial £3.95) will appear on my Kaleidoscope Personal Account ... The FREE ring is mine to keep, whether or not I decide whether to examine additional pieces in the collection ... When we accept your order a Kaleidoscope account will be set up so you have the option of paying off the account in full or spreading your payments.  Full details will be sent with your order ... Typical APR29.9% variable. We require your correct postcode for the Personal Account option.  Credit subject to status. We search the files of credit references agencies who record the search and we share information about you and the conduct of your account with them, with other lenders and relevant third parties ... By ordering from us, you are consenting to us sharing your information with other organisations and to us or them contacting you for marketing purposes by mail, telephone, email or otherwise.  If you do not wish to be contacted by us by telephone for marketing purposes please tick this box.  If you do not wish to be contacted by other organisations for marketing purposes, please tick this box".

Issue

A reader challenged whether:

1. the smallprint was too small to be easily legible, and

2. the availability of the ring was as limited as the ad suggested.

The ASA challenged whether:

3.  the description of the ring as "free" was acceptable, because consumers had to pay for packing;

4.  the information that a credit account would be set up for respondents was prominent enough; and

5.  the data protection information complied with the CAP Code.

CAP Code (Edition 11)

Response

1. Kaleidoscope said the ad appeared in the Saturday Express and Daily Mirror and they were not aware of any complaints; they said the ad used the standard sizing of small print used by them.  

2. They said they had budgeted for a response rate of 0.2% to the ring ad and had ordered 3000 rings for the promotion.  They said a similar promotion had obtained a 0.3% response rate, so the stocks of the ring were correctly described as limited.  

3. Kaleidoscope sent a copy of the delivery information and said that showed their "standard delivery" was charged at £3.95; they said the Marquise ring promotion was run with their usual standard delivery charges. They said their marketing department used the phrase P&P but there was no intention of charging anything for packing.  They said anybody responding to the promotion and ordering from the catalogue would be charged only once for delivery.

4. They said they used the same style and concept for all their marketing material.  They said the customer was not required to send money and instead a Personal Account was set up for them.  They said they then had the option of paying the balance off in full within 14 days of the statement date.  They said they were not aware of any previous complaints and the size of the small print was consistent with other third party offers in the press.

5. Kaleidoscope said their data protection statement was drafted by solicitors and they believed it complied with the Data Protection Act 1998.

Assessment

1.  Upheld

We noted the small print contained important information about the offer and considered that it should therefore be clearly visible to a normally-sighted person reading the marketing communication once, from a reasonable distance and at a reasonable speed.  We considered that both the size of the text and its position meant that the conditions were not sufficiently prominent to ensure consumers would have a full understanding of the offer.

On this point, the ad breached CAP Code clause 7.1 (Truthfulness)

2. Not upheld

We noted the stock of the ring was based on a response rate of 0.2%, which was slightly lower than a previous, similar offer.  We concluded that the statement "LIMITED STOCK!" was unlikely to mislead.

On this point, we investigated the ad under CAP Code clause 7.1 (Truthfulness) but did not find it in breach.

3. Upheld

We noted Kaleidoscope's contention that the £3.95 charge was their standard delivery charge. However, we reminded them that an offer should be described as free only if consumers paid no more than the true cost of freight or delivery, such as the current public rate of postage.  We noted the ad stated "FREE Ring All you pay for is the postage!" but considered that Kaleidoscope had not shown that the £3.95 delivery charge was no more than the true cost of postage for the ring.  We concluded that the description of the ring as "free" was misleading.

On this point, the ad breached CAP Code clause 7.1 (Truthfulness) and 32.5 (free offers and free trials).

4. Upheld

The ASA considered that, in the context of an ad that described the ring as "FREE" and stated "SEND NO MONEY", the fact that a Personal Account with a typical APR of 29.9% would be set up with the advertiser was a significant condition likely to affect consumers' understanding of the promotional offer.  We noted the reference to the mandatory Personal Account was stated in the small print and that full details were not sent until customers had placed their order. We concluded that the information explaining that, by responding to the Ring offer, customers were consenting to the opening of a credit account in their name was not sufficiently prominent.

On this point, the ad breached CAP Code clauses 7.1 and 7.2 (Truthfulness).

5. Upheld

The ASA reminded Kaleidoscope that the explicit consent of consumers was required before disclosing their personal details to third parties for direct marketing purposes.  Because the small print stated that, by responding to the ring promotion, consumers were consenting to Kaleidoscope sharing their information with other organisations who might contact them for direct marketing purposes, we concluded that the ad breached the Code.

On this point, the ad breached CAP Code clauses 43.4c and 43.5 (Database practice).

Action

The ad must not appear again in its current form.   We advised Kaleidoscope to contact the CAP Copy Advice team before running future, similar promotions.

Adjudication of the ASA Council (Non-broadcast)