ASA Adjudication on kgb (UK) Ltd
kgb (UK) Ltd
Cardiff Gate Business Centre
5 September 2012
E-mail, Internet (sales promotion)
Number of complaints:
An e-mail and website offer, seen on www.kgbdeals.co.uk, stated "£21 for a remote controlled Vibrating Egg (merchant's normal selling price is £48), from Lovers Products - save up to 56% and choose from five colours!".
The complainant, who said she had found the product on the Lovers Products website for £40.96, challenged whether the claim that the merchant's normal selling price was £48 was misleading.
CAP Code (Edition 12)
kgb (UK) Ltd (kgb) said, while they had set out to provide an attractive offer and had acted in good faith, evidence of the merchant's normal selling price had not been secured and they were therefore unable to substantiate the claim that the merchant's normal selling price was £48. They also said they had identified some important lessons which included addressing the complexity in Euro priced items that were subject to currency fluctuations, taking reasonable steps to secure product delivery by the merchants, and meeting the requirements for fully documented price references for the relevant promotional period. They said they would also ensure that specific information was given to prospective customers about products, pricing and discounts and other relevant terms to ensure that a fair and considered purchase could be made.
We noted kgb's acknowledgment that they did not hold evidence to demonstrate the merchant's normal selling price. Because we had not received any evidence to demonstrate that the merchant normally sold the product for £48, the claim had not been substantiated. We therefore concluded that it was misleading.
The ad breached CAP Code (Edition 12) rules 3.1 (Misleading advertising), 3.7 (Substantiation), 3.17 (Prices) and 3.40 (Price comparisons).
The ad must not appear again in its current form. We told kgb to ensure that price comparisons were accurate and that they held evidence to substantiate them in future.