Ad description

A TV ad for the mobile phone network provider, Three. The voice-over stated, "At Three, we've made 0800 numbers free. Here's a new one for you to call." Image showed a business card with the name "Singing Dictionary" and an 0800 number. A voice-over at the end of the ad stated, "All 0800 numbers are free on our 24 month plans." On-screen text stated "All 0800 calls free on new Three plans. Make the most of them".

Issue

1. The complainants challenged whether the claim "At Three we've made 0800 numbers free", which they understood applied to new customers or new contracts only, was misleading, because they believed it was not adequately qualified.

2. One of the complainants, a customer of Three, who was told an additional £5 per month would be necessary to call 0800 numbers free, challenged whether the free claim was misleading because they understood the cost of the service had been increased to cover the 0800 calls.

Response

1. Hutchison 3G UK Ltd t/a Three said the ad was intended to be viewed in its entirety rather than as isolated elements. They said that consumers would expect the opening statement, “… we’ve made 0800 numbers free” to be accompanied with further supporting information which was provided at the end of the ad. They said that the supporting information was unambiguous and explained that 0800 numbers were free on their new 24-month plans. They said the final voice-over which stated “0800 calls are free on our 24 month plans” was clearly spoken and the on-screen text which stated “All 0800 calls free on new Three Plans” was displayed prominently in clear large font at the centre top of the screen as the first message before any other text for a sufficient time for it to be easily read.

Clearcast said the qualification that free 0800 calls were available on all new contracts was included in large superimposed text on the screen at the same time as the voice-over and that there was no other messaging to distract from that text which could have led consumers to miss vital information. They said the use of the word ‘free’ in this instance was correct because 0800 calls would not be charged for customers who took out a new contract.

2. Three said it was standard within the mobile phone industry to charge for 0800 calls. However, Three’s new plans allowed customers to make 0800 calls at no extra cost and in that context, customers would understand that “All 0800 numbers are free on 24 month plans” meant that such numbers could now be called at no additional cost over and above the standard package price. They said their prices were set to reflect a number of factors, such as inflation, network investment, market conditions, network capacity, the cost of data and handset prices. They said they had not raised prices to include the cost of 0800 calls.

Clearcast reiterated Three’s points regarding the variables that influenced price setting.

Assessment

1. Upheld

The ad began with an opening spoken statement that 0800 numbers were free. The voice-over at the end of the ad then stated that calls were free on 24-month plans and the associated on-screen text stated that the free calls applied to “new Three plans” which was the first time this element was conveyed to consumers. We understood that free calls were only available with new, 24-month contracts. However, the ad contained three differing messages.

Whilst the ad included the on-screen qualification “new Three plans” the voice-overs did not emphasise the qualifying condition that free calls applied to new plans only and the on-screen text also omitted the 24-month requirement. Therefore, the two qualifying conditions appeared separately and were not clearly presented together. We considered that the lack of emphasis on both qualifying conditions contributed to consumer understanding that the offer would also apply to existing customers too.

Because the ad contained ambiguous and contradictory messages which did not make clear the extent of the commitment consumers must make to take advantage of the free offer, we concluded the ad breached the Code.

On this point the ad breached BCAP Code rules  3.1 3.1 Advertisements must not materially mislead or be likely to do so.  and  3.2 3.2 Advertisements must not mislead consumers 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 consumers need in context to make informed decisions about whether or how to buy a product or service. Whether the omission or presentation of material information is likely to mislead consumers depends on the context, the medium and, if the medium of the advertisement is constrained by time or space, the measures that the advertiser takes to make that information available to consumers by other means.
 (Misleading advertising),  3.10 3.10 Advertisements must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.  (Qualification),  3.25 3.25 Advertisements must make clear the extent of the commitment consumers must make to take advantage of a "free" offer.
Advertisements must not describe items as "free" if:
 and  3.25 3.25 Advertisements must make clear the extent of the commitment consumers must make to take advantage of a "free" offer.
Advertisements must not describe items as "free" if:
 2 (“Free” claims).

2. Upheld

We understood that one complainant was informed that on their existing plan a monthly charge of £5 was necessary to take advantage of free 0800 calls. As with point 1, we considered that consumers would have understood that no additional charges would be incurred due to the impression given by the ad that Three were offering free 0800 calls. Because the price of the service had been increased we considered the ad breached the Code.

On this point the ad breached BCAP Code rules  3.1 3.1 Advertisements must not materially mislead or be likely to do so.  and  3.2 3.2 Advertisements must not mislead consumers 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 consumers need in context to make informed decisions about whether or how to buy a product or service. Whether the omission or presentation of material information is likely to mislead consumers depends on the context, the medium and, if the medium of the advertisement is constrained by time or space, the measures that the advertiser takes to make that information available to consumers by other means.
 (Misleading advertising),  3.10 3.10 Advertisements must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.  (Qualification),  3.25 3.25 Advertisements must make clear the extent of the commitment consumers must make to take advantage of a "free" offer.
Advertisements must not describe items as "free" if:
 and  3.25 3.25 Advertisements must make clear the extent of the commitment consumers must make to take advantage of a "free" offer.
Advertisements must not describe items as "free" if:
 2 (“Free” claims).

Action

The ad must not appear again in its current form. We told Hutchison 3G UK Ltd t/a Three to ensure the basis of any "free" claim was clear to consumers in future.

BCAP Code

3.1     3.10     3.2     3.25     32.5.2    


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