Ad description
A website for self-storage units, www.shurgard.co.uk, that stated "First month's rent* £1 no minimum stay ... *conditions apply". The phrase "conditions apply" was a link to a pop-up box that contained the text "All offers exclude the cost of a lock, insurance and administration fee".
A further page on the site, which contained the same claim and footnote link as the home page, also stated "Storage units in London: £1 for the first month ... Our prices are very attractive. You already rent a storage unit for £1 for the first month!".
Issue
The complainant, who understood that compulsory insurance and administration fees applied, challenged whether the claim "First month's rent £1" was misleading.
Response
Shurgard Self Storage UK Ltd said that the offer was a genuine one and that there was a real saving to customers renting £1 promotional units. They explained that the £1 promotion specifically referred to the rental price of a unit, and that there was a distinction between this rent and the additional costs required to move into a unit. They said that this was analogous to the rental price of a flat being distinct from the additional costs required when moving in. Shurgard Self Storage therefore considered that £1 offer could be compared directly to the price of non-promotional units on their website and to prices offered by competitors. They also provided examples of competitors who marketed promotions in a similar way.
Shurgard Self Storage said that the website clearly mentioned that other costs could be incurred. They explained that these costs consisted of a lock, mandatory insurance and an admin fee for setting up new customers. They said that customers may already have their own locks and could place the contents of the locker on their existing household insurance. Shurgard Self Storage also explained that customers who were already registered but who had not stored with them for the last 30 days were eligible for the offer and would not have to pay the admin fee. Therefore, while additional costs beyond the £1 rent did apply, it was possible for a customer to rent a unit without paying these costs.
Shurgard Self Storage reiterated their belief that they clearly advised customers of the additional move-in costs. They said that the asterisk in the ad led to a link to the terms and conditions, which stated "All offers exclude the cost of a lock, insurance and administration fee" and that it would be stated further in a confirmation e-mail and follow-up phone call. They also explained that only reservations were taken over the website, and that the costs would need to be agreed over the phone before payment would proceed.
Assessment
Upheld
We acknowledged Shurgard Self Storage’s assertion that the rental price was distinct from additional fees, such as registration, insurance and the cost of a lock and considered that consumers were likely to interpret the term "rent" and "£1 for the first month" as relating only to the monthly cost of a unit and not one-time fees. We also noted that, under certain circumstances, it would be possible for a customer to rent a unit for £1 without needing to buy a lock or insurance, or pay an admin fee. However, we considered that for many consumers, and for new customers in particular, it would not be possible to rent a unit for £1 without paying at least one of the additional costs. In particular, all new customers, to whom we considered the ad was primarily addressed, would be required to pay a mandatory admin fee, even if they already had their own lock and insurance arrangements. We therefore considered that this was a significant condition with which the main claim needed to be suitably qualified.
We acknowledged Shurgard Self Storage’s explanation that the separate nature of these costs was made clear in the terms and conditions box. Nonetheless, we noted that the statement of these costs in the terms and conditions was separated significantly from the headline claim by being placed in a pop-up box navigated to through a footnote, and considered that it therefore did not have sufficient prominence. We also noted Shurgard Self Storage’s statement that this information would be provided in follow-up correspondence. However, although we acknowledged that no money was taken until after the costs had been explained and agreed, we considered that the reservation of the unit was a transactional decision in itself, and that this further explanation therefore took place after the decision had been made. Because additional costs would be applicable to many customers, and because this was not stated with sufficient prominence, we concluded that the claim was misleading.
The ad breached CAP Code 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.
3.10
3.10
Qualifications must be presented clearly.
CAP has published a Help Note on Claims that Require Qualification.
(Qualification),
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.
and
3.19
3.19
If a tax, duty, fee or charge cannot be calculated in advance, for example, because it depends on the consumer's circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated.
(Prices).
Action
The ad must not be used again in its current form. We told Shurgard Self Storage UK Ltd to ensure that future ads made clear when additional charges applied.
