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ASA Adjudication on Weston Knightly Ltd

Weston Knightly Ltd t/a British Gold Refinery

Prospect House
Lapwing Lane
Didsbury
Manchester
M20 6UR

Date:

4 January 2012

Media:

Internet (on own site)

Sector:

Business

Number of complaints:

3

Complaint Ref:

A11-165168

Background

Ad

A website and a sponsored search ad, seen in May and July 2011.

a. A website ad featured a gold calculator and stated "Get cash within 24 hours or choose to have your jewellery returned".

b. A Google sponsored search ad stated "Scrap Gold We Pay 70% More For Scrap Gold. Go Direct, Cut Out the Middleman".

Issue

1. Three complainants challenged whether ad (a) was misleading because it did not state that customers who wanted to have their gold returned would have to pay a fee.

2. One complainant challenged whether the claim "We pay 70% more" in ad (b) was misleading and could be substantiated.

CAP Code (Edition 12)

Response

1. Weston Knightly Ltd t/a British Gold Refinery (Weston Knightly) said 5.2 and 6.3 of their terms and conditions explained that customers who wanted their gold returned would need to pay a fee. 5.2 stated "In the event that you have selected 'bank transfer' or 'cheque payment' in the accompanying Gold Pack, you will be deemed to have accepted the Offer we make and a payment will be made automatically by the selected method" while 6.3 stated "If you selected the 'Quote Only' option on the Gold Pack when sending us your item(s), and upon being informed of the Offer you notify us that you do not wish to accept it, we will return the items to you free of charge within three days of your informing us of the rejection of the Offer".

They added that if customers wanted to have a free quotation, they could do so under 6.1 of their terms and conditions, which stated "If you decide not to accept our offer, we will return your gold to you within seven days".

2. Weston Knightly said they had discussed the issue with their marketing team but they could not find any evidence of the claim.

Assessment

1. Upheld

The ASA noted that 5.2 explained customers would be deemed to have accepted the offer if they elected to have their payment made by bank transfer or cheque payment, and noted that later in the terms and conditions section 6.4 stated "If you choose to cancel the acceptance of the Offer which you made by selecting a payment type within the gold pack, then subject to clause 6.5 we will return your items to you provided you have (a) returned any payment you have received from us within seven days of receiving it, and (b) paid the related charge (minimum £35, but subject to change) plus VAT, postage and packing".

We considered the conditions stated in 5.2 and 6.4 were significant conditions that were likely to affect a consumers decision to send their gold to Weston Knightly. We therefore considered they should have been prominently expressed to customers in the main body of the ad itself, not in the terms and conditions. Because they were not, we concluded ad (a) was misleading.

The ad breached CAP Code (Edition 12) rules 3.1 and 3.3 (Misleading advertising), 3.7 (Substantiation) and 3.9 (Qualification).

2. Upheld

We noted that the sponsored search link was still appearing on Google, and that we had not received any evidence to substantiate the "We pay 70% more" claim. We therefore considered the claims in ad (b) had not been substantiated and concluded the ad was misleading.

The ad breached CAP Code (Edition 12) rules 3.1 and 3.3 (Misleading advertising), 3.7 (Substantiation) and 3.9 (Qualification).

Action

The ad must not appear in its current form again.

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