ASA Adjudication on De Agostini UK Ltd

Ad

A magazine insert, for So Hannah Montana magazine subscriptions, stated "My Exclusive offer: I will receive my FREE magazine binder with my first delivery. I will receive my FREE tote bag with my second delivery. I will receive my FREE charm bracelet with my third delivery. I will receive my FREE microphone with my fourth delivery". Small print stated "I will receive 2 magazines with my first parcel and thereafter 4 magazines every 4 weeks, plus special issues of So Hannah Montana that De Agostini may publish from time to time. Additional binders for this series will be sent to me when due and charged to my account. I acknowledge that publication schedules may vary and I will be notified in such event ...".

Issue

The complainant objected that the ad was misleading, because it did not make clear the cost of additional binders.

CAP Code (Edition 11)

Response

De Agostini UK (De Agostini) said they believed the ad was not misleading and gave readers sufficient information to make an informed decision about whether or not to subscribe.  They argued that they were restricted by space on the subscription forms so could not include all information.  They said they provided information to customers on their website and through their call centre and would answer any questions about the subscription.  De Agostini said customers were sent a welcome letter when they first subscribed; the letter included the cost of the binders and was sent prior to the customer making any payment.  They said they also sent a guidebook with the first two issues which explained how the subscription worked and that customers could request not to receive the extra binders if they did not want them.

De Agostini said customers who subscribed to the magazine received a free binder with their first delivery; the next binder was sent 17 weeks later with issue 15 of the magazine.  They asserted that customers were given sufficient time to advise them if they did not want to receive the binders and, even if they did receive them, customers could return the binders if they did not want them and would receive a full refund.

Assessment

THIS ADJUDICATION REPLACES THAT PUBLISHED ON 24TH JUNE 2009. THE COMPLAINT REMAINS UPHELD BUT THE WORDING HAS BEEN CHANGED.

Upheld

The ASA understood that the cost of each additional binder was £7.99.  We noted customers were not informed of that cost in the ad.  We considered that the cost of the additional binders was a significant condition and should have appeared in the ad. We concluded that, because the ad did not make clear the cost of the additional binders, it was likely to mislead.

The ad breached CAP Code clauses 7.1 and 7.2 (Truthfulness) and 42.2c (Distance selling - prices).

Action

The ad must not appear again in its current form.  We told De Agostini to make clear to customers the cost should they respond to future promotions.

Adjudication of the ASA Council (Non-broadcast)