ASA Adjudications

Direct Marketing UK t/a www.fasthomecash.co.uk
PO Box 174
Merseyside
L34 5WS
Number of complaints: 1
Date:29 August 2007
Media:National press
Sector:Employment

Ad
A national press ad was headed "EARN £££'s - Stuffing Envelopes."  It continued "Working From Home.  For your FREE info pack Call 0906 XXX XXXX or Text your name and address only to 07901 XXXXXX.  www.fasthomecash.co.uk."  It appeared in a column headed "Business Opportunities."
Issue
1.  A reader said the company had told him he would be paid £800 for stuffing 500 envelopes.  He said he had been charged £49.99 to join the company but they had not provided him with any work.  He also said there were other conditions to the offer that were not mentioned in the ad.  He challenged whether the work was genuinely available at the time of the ad.

The ASA challenged

2.  why the information pack was described as "FREE" when it was paid for by calling a premium rate number and

3.  whether the additional details required for homework schemes were contained in the information pack, since they were not included in the ad.
The CAP Code: 7.1;32.1;52.1;52.5

Response
1. & 3.  Direct Marketing UK said they advertised a home-based business opportunity under a heading that stated "Business Opportunities."  They said they charged a joining fee of £49.99 and did not offer employment to respondents.  They said they would never have told a respondent that they would earn £800 for stuffing 500 envelopes.

2.  They said the premium rate number quoted in the ad was for support and training, but that the information pack itself was free of charge.  They said that, because of lack of space, they were unable to include pricing information for the premium rate telephone number in the ad.

They said the ad was no longer running.
Assessment
1. & 3.  Upheld
The ASA noted Direct Marketing UK's explanation that the ad was for a business opportunity rather than an offer of employment.  We therefore understood they would not offer work to respondents.

Because the ad was for a business opportunity, the Code required it to state the amount of initial investment required.  The ad did not state, however, that there was a joining fee of £49.99.

On these points the ad breached CAP Code clauses 7.1 (Truthfulness), 52.1(Employment and business opportunities) and 52.5 (Marketing communications for business opportunities).

2.  Upheld
Although Direct Marketing UK distinguished between respondents telephoning to be sent information and those telephoning for support or training, we noted that there was only one telephone number for callers to use, and this was a premium rate number that charged £1.50 per minute.  It was therefore not possible for those calling for information to escape paying for a premium rate call.  We therefore considered it was misleading for the ad to describe the information pack as "FREE."

On this point the ad breached CAP Code clauses 7.1 (Truthfulness) and 32.1 (Free offers and free trials).
Action
We welcomed Direct Marketing UK's assurance that the ad was no longer running.  We told them to state sufficiently prominently in their ads when they were advertising a business opportunity and to include at least the amount of initial investment required when that was the case.  We told them to delete the use of the word "FREE" when callers had no option other than to use a premium rate telephone number and to ensure ads stated the charges for calling the number.

Adjudication of the ASA Council (Non-broadcast)

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