Background
Summary of Council decision:
Two issues were investigated, both of which were Upheld.
Ad description
An e-mail promoting the online betting site www.betfred.com, received on 5 March 2013, was headlined "Risk free in-play offer & doubled and trebled odd on Champions League action". Further text in the body of the ad stated "Get a risk-free in-play bet from Fred - why bet anywhere else? Hi, Grab a risk free £10 in-play bet on tonight's massive game at Old Trafford! If you don't win we'll refund your first in-play bet up to a tenner....".
Issue
Two complaints challenged whether the ad was misleading because:
1. it did not make clear that the "risk free £10 in-play bet" offer was paid as £10 free bet and not cash; and
2. it did not make clear that customers who went on to bet and win with that "free bet" would not have that stake returned.
Response
1. Petfre (Gibraltar) Ltd t/a Betfred.com (Betfred) said that every one of the promotional e-mails sent by Betfred.com included a link to the terms and conditions for the relevant offer/promotion, as was the case in this instance. They said these terms and conditions were also available on the Betfred.com website and on the Mobile Space, Betfred.mobi. They provided the conditions associated with this offer which included "Offer applies to losing bets taken In-Play during the Manchester United v Real Madrid match on 5th March 2013", "Maximum free bet refund per customer is £10" and "Offer is fulfilled in free bets". They pointed out that the terms and conditions available to the customer made several references to the fact that the offer/promotion was to be re-paid in the "Free Bet" currency. They said that the ad was only sent to existing Betfred customers who were familiar with offers and bonuses of this nature and that the e-mail ad would therefore not have attracted new customers. They said the return of a losing bet as a 'free bet' was not material or significant because, had players lost they would have lost everything, but returning this as a 'free bet' enabled them to place another bet for the same amount, hence being 'risk free'.
2. They said the "risk free" promotion was based around the customer placing an in-play bet on the nominated match and that bet being their first in-play bet. They said that if the first in-play bet ad lost then the customer would receive £10 back into their account, in essence, risk free. They said the promotion did not mention, nor was it based around "winning" or "won" bets placed. They said existing Betfred customers would be aware of the term "free bet" and the Betfred rules and would understand that free bet stakes were not returned.
Assessment
1. Upheld
The ASA considered that without qualification, recipients of the e-mail would understand from the reference to "risk free in-play bet", that they would not lose any of their own money and that a £10 bet staked and lost on that offer would be returned as cash funds. We noted qualifying losing bets up the value of £10 were returned to the player but that this amount was returned as a "free bet" and not as cash that could be withdrawn. We considered that this was a significant condition which should have been stated in the body of the e-mail and that it was not sufficient for that information to be qualified separately in terms and conditions. We therefore concluded that the ad was misleading.
On this point 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),
3.9
3.9
Marketing communications must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
(Qualifications),
8.2
8.2
Promoters must conduct their promotions equitably, promptly and efficiently and be seen to deal fairly and honourably with participants and potential participants. Promoters must avoid causing unnecessary disappointment.
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
(Sales promotions).
2. Upheld
We considered that recipients of the e-mail would understand from the reference to "grab a risk free in-play bet on tonight's massive game at Old Trafford" that any refund from a losing bet could then be used in normal play and would be treated as a standard bet and that as such, if that bet won, the stake would be returned along with any winnings and so there was no risk from losing that initial bet. However, we understood from the complainant that winning bets which resulted from any £10 free bet refund on an initial losing bet would not result in that stake being returned, resulting in an overall loss compared to a scenario where the initial bet had been returned as cash and then staked. We considered that this was a significant condition which should have been stated in the body of the e-mail and that it was not sufficient for that information to be qualified separately in terms and conditions. We therefore considered that the ad was misleading.
On this point 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),
3.9
3.9
Marketing communications must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
(Qualifications),
8.2
8.2
Promoters must conduct their promotions equitably, promptly and efficiently and be seen to deal fairly and honourably with participants and potential participants. Promoters must avoid causing unnecessary disappointment.
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
(Sales promotions).
Action
The ad should not appear again in its current form. We told Betfred to ensure significant conditions were included in the body of future e-mail promotions.
