Teleshopping News

21 January 2005

Ofcom’s recent decision to revoke the broadcasting licence of teleshopping channel Auctionworld whilst also issuing the channel with a record £450,000 fine, sends a clear message to advertisers that they cannot ignore the broadcast Codes.

Auctionworld, which was available on satellite and cable, asked viewers to bid live on air for a range of premium goods. Each item was accompanied by a ‘price guide’ which was supposed to reflect the amount consumers can expect to pay for the same item on the high street.

However, Ofcom received hundreds of complaints that these guides were misleading and that the channel’s customer service was unacceptable. On investigation, Ofcom found that a guide for buying loose diamonds valued them at £19,360 while the regulator’s own expert estimated this value at only £3,580. Ofcom also found Auctionworld had inadequate arrangements to handle enquiries leading to delays in delivery of goods.

Following the Auctionworld ruling, and concerns about other teleshopping channels, the Broadcast Committee of Advertising Practice (BCAP) has published a Help Note on Price Indications and Comparisons in Teleshopping Advertising. The note strives to prevent the use of false recommended retail prices (RRP), exaggerated price cuts and deceptive comparisons with higher quality products.

BCAP advises that when promoting items or services available only from the advertisers then guide prices, RRPs or similar should not be used. All price comparisons should be genuine and the advertisers should be able to prove that items have been sold at these prices prior to broadcast.

The Help Note also alerts advertisers to the fact that the Department of Trade and Industry has a Code of Practice on Price Indications which advertisers must adhere to in order to comply with the consumer Protection Act 1987.

For a full copy of the Help Note see www.cap.org.uk or click here.