Ad description
A pre-roll video ad for Argos on YouTube and a web page on www.argos.co.uk were both seen on 29 September 2016.
a. Voice-over in the video ad stated, "At Argos get the all new, redesigned, slimmer PS4. This 500 gigabyte bundle with FIFA 17 is just £249.99. Or the one terabyte version with an extra dual shot four controller is £299.99 ..." The ad showed the PS4 Console, controller(s) and a packshot of the FIFA 17 PS4 game. Text at the bottom of the screen stated, "Offer starts 29th September. Offer ends 4th October. 500GB: £249.99. 1TB: £299.99. Stand not included".
b. The web page showed a different Sony PS4 Console with 500GB hard drive and controller alongside the price £149.99. A special offer at the bottom of the page showed the FIFA 17 PS4 game with the price £45.99, the PS4 Console and controller with the price £149.99 and a box with the text "CHOOSE FROM 3 PRODUCTS" all separated by "+" signs. After the three items an "=" sign was followed by the text "from £149.99 - CHOOSE PRODUCTS". Text stated, "Purchase this 500GB PS4 Console and receive both FIFA 17 PS4 and a selected game free. Offer ends 13th October 2016".
Issue
Two complainants, who had seen each ad respectively, and who had each been told that the bundle they had seen had sold out when they tried to buy it on 29 September, challenged the availability of the bundle.
Response
Argos Ltd supplied spreadsheet information which showed customer demand and sales for the two bundles in the week of the promotion and in the six weeks preceding it. Regarding the PS4 bundle advertised in ad (a), they said the spreadsheet showed they had been able to meet 84.84% of demand for the bundle, which they said was quite normal. They said their buyer reported that there had been adequate stock before and after the promotion.
Argos said the bundle advertised in ad (b) was made available to them the previous day, 28 September, and had created enormous demand, not only for Argos but also, they understood, for other retailers. They said the spreadsheet showed that sales were low in the weeks preceding the promotion. On the day the promotion began, they became aware of a 27-fold increase in demand compared with the week before. They believed it to be a genuine case of Argos being caught out by unprecedented demand and they had taken immediate steps to remove the promotion from their website.
Assessment
Upheld
The ads depicted the promotional offer with no indication that availability was limited. The ASA therefore considered that consumers would expect the products to be generally available. In that case, we would expect to see evidence that the product was widely available and that Argos had sufficient stock to meet expected demand. The CAP Code stated that advertisers needed to be able to demonstrate that they had made a reasonable estimate of the likely response and either that they were capable of meeting that response or that consumers had sufficient information to make an informed decision on whether or not to participate. We acknowledged that, for ad (a), Argos' buyer reported that there had been adequate stock before and after the promotion and, for ad (b), Argos considered they had been caught out by unprecedented demand and had taken immediate steps to remove the promotion from their website. However, while the spreadsheet information Argos had supplied showed the pattern of availability and demand for the bundles in the six weeks preceding the promotions, we had seen nothing from them that explained how they had estimated what the promotional demand was likely to be. We considered that the amount of stock available could not be understood to be sufficient to meet likely demand, if that demand had not been estimated. We therefore considered that a reasonable estimate of demand had not been made, leading to, in the case of ad (a), a complainant being unable to purchase the product at the promotional price and, for ad (b), Argos needing to remove the promotion from their website due to a level of demand that they had not foreseen.
We concluded that the ads therefore breached the Code.
Ads (a) and (b) breached CAP Code (Edition 12) rule 8.10 8.10 Promoters must be able to demonstrate that they have made a reasonable estimate of the likely response and either that they were capable of meeting that response or that consumers had sufficient information, presented clearly and in a timely fashion, to make an informed decision on whether or not to participate - for example regarding any limitation on availability and the likely demand.
Action
We noted that the ads would have finished their run. We told Argos Ltd to ensure that, for future promotions, they were able to demonstrate that they had made a reasonable estimate of likely response and either that they were capable of meeting that response or would provide consumers with sufficient information to make an informed decision on whether or not to participate.
