ASA Adjudication on Sterling UK

Ad

A regional press ad, for a homeworking scheme, stated "Stuff Envelopes For Extra Cash! Work from home. Top pay rates! Call now: 0870 ... ". The follow-up literature included a letter titled "Your Genuine Chance To Earn EXTRA CASH Working-From-Home". Text continued "Dear Homeworker, Congratulations on deciding to earn an extra income working at home. Please relax and take your time reading through our opportunities. You'll soon be able to start working at home ... earning pocketfuls of extra cash each week from your choice of a variety of simple methods. Sterling U.K - regarded by established homeworking organisations as being leaders in our field ... GUARANTEE To Earn You Extra Money! ... all of the options we offer include no silly unworkable schemes, but 'income builders' that have been thoroughly investigated and have been proven to work. The national media would certainly not let us advertise if our claims were not 100% true ... You CAN Change Your Life NOW! ... flick through this pack and pick the options you like ... At Sterling U.K we've already paid-out [sic] thousands of pounds in commissions ... many of our clients have chosen all 5 options for maximum income gains ...". The application form stated "Looking For Well Paid WORK AT HOME? Earn extra cash in your spare time sending us filled envelopes. Simply follow our plan and we'll show you how we pay Homeworkers OVER £500 PER HUNDRED - new & now easier than ever! ... Work is ALWAYS AVAILABLE ... You're paid at the generous rate of £500+ for every 100 envelopes ... (one agent has just been paid £2725.50) - simply batch up all you can send us on a weekly basis and post them to us for your nice big fat payment ... no experience needed ... please return your application form to us as soon as possible. We will require a small fully refundable DEPOSIT of £59 (reduced to £35 if you reply within 7 days) ... Any additional expenditure that will be necessary once you have registered is allowed for in the very generous rates we pay; and includes no payments from you to us, no deductions, any follow-up information is provided FREE OF CHARGE. In as much as we'd like to send you our valuable pack for FREE we must protect ourselves from those who have no intention of starting ... As soon as you have earned your first £50 in commission ... we guarantee to REFUND in full your registration deposit plus an additional £25 new starter bonus! FREE limited-time bonus! Apply within 7 days and we'll also rush you a FREE copy of the renowned 'British Homework Directory' ...". Further information in the follow-up pack consisted of leaflets about the different homeworking options: "THE LAZY MAN'S WAY TO RESIDUAL RICHES!", "HOME CLERICAL ASSISTANT", "Where The Money Is And How You Can Get It", "HOMEWORKERS URGENTLY WANTED!", "WORK AS A PROOFREADER" and "How To Make £300 A DAY Without A Job!".

Issue

1. The complainant challenged whether the ad and follow-up literature misleadingly implied that work was available, because despite having paid a £25 fee, she still had not received any work.  

The ASA challenged:

2. the ad's failure to state the advertiser's full name and geographical address;

3. the ad's failure to make clear that a financial outlay was involved; and

4. whether the claim "£500+ for every 100 envelopes" could be substantiated.

CAP Code (Edition 11)

Response

1. Sterling UK (Sterling) said receipt of the follow-up information pack confirmed acceptance of the candidate into their scheme and entitled them to work and be paid at the rate of remuneration quoted in the ad.

2. Sterling explained that the ad was too small to include their geographical address and were unaware that this was a requirement under the CAP Code. They pointed out that their contact details were included in the ad so that readers could request further details.

3. Sterling said no financial outlay was involved except a deposit made in relation to the "Express Income" plan.  They added, however, that the deposit was refundable.  Sterling explained that other options included in the information pack outlined different ways people could increase their income and/or improve their life, mainly by stuffing envelopes.  They said they were not aware that press ads were required to stipulate that featured products and offers may involve the exchange of money.

4. Sterling said the claim "£500 + for every 100 envelopes" was an accurate representation of the likely earnings.  They explained that, for every envelope received in accordance with the plan's instructions, the minimum the mailer would be paid was £7.50 per envelope.  Sterling said, in practice, earnings levels were much greater.

Assessment

1. Upheld

The ASA noted Sterling's comments.   We noted the follow-up literature stated " ... Work is ALWAYS AVAILABLE" and did not ask respondents to send CVs or a covering letter, nor did it state that a limited number of positions were available.  We considered that the ad suggested paid work was available and the follow-up literature implied that work was available to every applicant and, because Sterling did not submit evidence to show that, we concluded that the ad and follow-up literature were likely to mislead.  

On this point, the ad breached 3.1 (Substantiation), 6.1 (Honesty) and 7.1 (Truthfulness).

2. Upheld

We noted Sterling's reason for not including their address in the ad and also noted their full name and geographical address were in the follow-up literature.  However, we understood that consumers had to make a financial commitment before receiving that literature.  We considered that Sterling's name and address should have been made available before financial commitment and, because they were not, the ad was in breach of the Code.  

On this point, the ad breached CAP Code clause 52.4 (Employment and business opportunities).

3. Upheld

We noted Sterling's comments but understood from the complainant that she had been asked to send a postal order for £25 before receiving the follow-up information pack.  We noted the Code required the fact that a financial outlay was involved to be made clear in the initial marketing communication and considered that the £25 postal order and the refundable deposit were both financial outlays.  Because Sterling had not included that information in their press ad, we concluded that it was in breach of the Code.

On this point, the ad breached CAP Code clause 52.4 (Employment and business opportunities).

4. Upheld

We noted Sterling's belief that the earnings claim was accurate.  We were nevertheless concerned that they had not sent us documentary evidence that showed the sum they quoted was typical of the income people could achieve through one of their schemes.  We concluded that they had not substantiated the claim.

On this point, the ad breached CAP Code clauses 3.1 (Substantiation), 6.1 (Honesty) and 7.1 (Truthfulness).

Action

We told Sterling UK not to use the ad again and to amend the follow-up literature.  We advised them to contact the CAP Copy Advice team for guidance with the wording of future ads and follow-up literature.

Adjudication of the ASA Council (Non-broadcast)