Ad description
A website, www.ecigsbrand.com, stated, "Claim Your Exclusive E-Cig Starter Kit ... ACT NOW, SUPPLIES ARE LIMITED!".
Issue
A complainant challenged whether the ad was misleading, because it did not make clear that consumers would incur charges if they did not cancel within 15 days.
Response
Ecigsbrand (e-cigs) said they took several steps to ensure customers were aware of the ongoing financial commitment unless they cancelled within 15 days. This was disclosed before the customer entered payment details, after purchase was confirmed, in a welcome e-mail, which included a UK customer service telephone number; the package slip also included this information. Additionally, within the package a brochure and membership card stated the ongoing membership and if a customer missed this information, they offered a no hassle refund.
The advertiser also said that most customers understood that a premium electronic device and the accessories which were sold in a high quality, custom designed hard case box, could not be manufactured, shipped to them and supported with warranty for the trial price, and so customers would have assumed an ongoing element of the purchase.
Assessment
Upheld
The ASA noted that e-cigs took various steps to ensure the ongoing customer commitment was clear and the home page of the promotion was amended to include a check box with the text "I agree to the full terms, conditions, and privacy policy of this offer". However, we asked the advertiser on several occasions to ensure the ongoing commitment was clearly stated on the offer home page and not on subsequent pages. We also noted the commitment displayed before payment was confirmed was grey text on a black background which might not have been sufficiently prominent to avoid being overlooked by consumers. We disagreed with e-cigs' argument that consumers would assume an ongoing financial commitment in a promotion for a premium product.
We concluded that, because the promotion home page omitted significant information that made it clear additional charges would be incurred if consumers did not cancel, the promotion was misleading.
The ad breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising),
3.17
3.17
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product featured in the marketing communication.
(Prices),
3.23
3.23
Marketing communications must make clear the extent of the commitment the consumer must make to take advantage of a "free" offer.
(Free) and
8.17.1
8.17.1
How to participate
How to participate, including significant conditions and costs, and other major factors reasonably likely to influence consumers' decision or understanding about the promotion
(Significant conditions for promotions).
Action
The ad must not appear in its current form. We told e-cigs to ensure significant financial commitments were clearly stated in their promotions.
