ASA Adjudication on Lexx Publishing and Media Ltd

Ad

A promotional e-mail, for a subscription to an online listings directory, was sent to a business address and had the subject heading “Lloyds On-Line Directory”. Text stated “Dear XXX I have tried to call you a couple of times. As you know, Lloyds is the definitive source for the global maritime industry. Your company details are currently listed with the Lloyds On-Line Directory … Within the next couple of weeks, Lloyds will be making a small administration charge of just £35 per year for this service. The above cost includes a free PREMIUM listing for your company. This means that your company’s details (and web-link) are highlighted and placed at the top of all relevant directory searches. This gives your company maximum international exposure and generates maximum response. This complimentary offer is for a limited period only and is available only to selected companies on a ‘first come’ basis* … ”. The asterisk was linked to a footnote, which stated “All offers are subject to our standard privacy policy and terms”.

Issue

The complainant, who applied for the free premium listing and was subsequently charged £1,200, objected that the e-mail was misleading.

CAP Code (Edition 11)

Response

Lexx Publishing and Media Ltd (Lexx) said the standard cost for a premium listing was £1,200 and the standard cost for a regular listing was £35.  They said the complainant signed a contract for a premium listing, which was free of charge for the first 60 days; after 60 days the standard rate of £1,200 was charged.  The contract was subject to a minimum term with a right to cancel within 60 days, as indicated in their terms and conditions.  They said the complainant's attention was drawn to the availability of those terms on their website in the order confirmation he signed; he was also sent a copy of them with a 'welcome' e-mail.  They pointed out that the promotional e-mail stated that the offer was for a limited period only and also referred the reader to the terms and conditions; Lexx said all of their correspondence directed the complainant to the terms and conditions.  They provided copies of their terms and conditions, the complainant's signed order confirmation and e-mails between themselves and the complainant.  They said they had withdrawn the promotional e-mail.

Assessment

Upheld

The ASA noted the ad included a link to Lexx's terms, which were eight pages long and stated "Lexx Premium Directory listing @ £1200 GBP for 12 months.  A Premium listing upgrade is by invitation only and is free of charge for the first 60 days from the start of this agreement".  We also noted the order form stated in the small print that terms and conditions applied and referred readers to their website.  We acknowledged that the ad stated "This complimentary offer is for a limited period only" but considered readers would infer from that claim that they had a limited time to apply for the offer.  We noted that neither the ad nor the follow up material referred to a trial or the £1,200 charge that would be payable after the free trial ended.  We considered that the text "The above cost includes a free PREMIUM listing for your company", in conjunction with, " ... and is available only to selected companies on a 'first come' basis* ... " suggested that the premium listing was free, to those companies who responded first, for the entire length of the subscription rather than for a trial period.     

Because the ad did not state the significant conditions of the offer, we concluded it was misleading.        

The ad breached CAP Code clauses 7.1 (Truthfulness), 27.4 (Unnecessary disappointment) and 34.1a (Significant conditions for promotions).

Action

The ad must not appear again in its current form.  We told Lexx to ensure significant conditions were clearly stated in future ads.

Adjudication of the ASA Council (Non-broadcast)