ASA Adjudication on Experian Ltd

Ad

A radio ad, for creditexpert.co.uk, stated “If you’ve been refused credit, one of your first questions will be ‘Why?’ Well, now you can get some answers. Check your Experian credit report free at creditexpert.co.uk. See a summary of your credit commitments including repayment history and see what lenders see about you when they consider your application. For a loan, credit card or mortgage, it could help you get a better deal. So, take greater control of your finances today with creditexpert.co.uk. Conditions apply.”

Issue

A listener complained that the ad was misleading because it did not make clear that it was a free trial only.

BCAP Radio Code

Response

Experian believed the complaint might have arisen from a misunderstanding of the ad as promoting a membership offer.  They said the ad had been developed to encourage listeners to get a better understanding of their finances by letting them see what lenders saw about them.   They explained that any listener who took up the offer could view their credit report online at no cost to them and they were under no obligation to take up ongoing membership.  They added that during the period April 2007 to March 2008 more than one million new customers viewed their credit reports online at CreditExpert, and results to date suggested more new customers would view their reports this year.

The Radio Advertising Clearance Centre (RACC) believed the ad was factually accurate and did not mislead, because, as stated, consumers could, for free, check their credit report and see a summary of their credit commitments, including repayment history.  They said the ad did not offer a free trial of unlimited subscription to all services offered by Experian, and it made clear that conditions applied to the offer of the free credit check.  They pointed out that, although customers had to supply card details to sign up, they were told, prior to signing up, of the cost of the service after 30 days, that there was no obligation to continue with the service once the free features offered in the ad had been claimed, and that they could cancel their membership at any time by phone, e-mail or in writing.  The RACC argued, with regard to CAP (Broadcast) Radio Advertising Standards Code rule 2-20, that there was no cost at the end of the period because there was no subsequent financial obligation and consumers merely cancelled when they had received the information that the advertisement offered.  Similarly, there was no commitment to consumers other than to sign up and cancel once they had received the information that the advertisement offered. The RACC therefore considered that the qualifying phrase "conditions apply" was sufficient to cover the circumstances of the offer.

Assessment

Upheld

The ASA noted consumers could access their credit record via the creditexpert website at no charge.  We noted they could do so only after subscribing to a trial and submitting their card details, and that they would have to cancel the service if they did not want to be charged at the end of 30 days.  We noted those conditions were made clear at the time of signing up, however, we also noted CAP (Broadcast) Radio Advertising Standards Code rule 2-20 stated "a trial product may be described as 'free' provided that any subsequent financial obligations from the customer are specified in the advertisement, eg. ... the cost of the product at the end of the trial period."  We considered that "conditions apply" was not sufficient to make clear the degree of commitment required to access the free credit check offer, which would involve the consumer signing up to a service and bearing the responsibility of cancelling at the end of the trial period.  We therefore considered that the ad should have made clear that consumers would be charged at the end of the trial period if they did not cancel.  We concluded that the ad was likely to mislead.

The ad breached CAP (Broadcast) Radio Advertising Standards Code rules 2-3 (Misleadingness) and 2-20 (Use of the word 'free').

Action

The ad must not be broadcast again in its current form.

Adjudication of the ASA Council (Broadcast)