Background
Summary of Council decision:
Two issues were investigated, both of which were Not upheld.
Ad description
A TV ad for VistaPrint Ltd (VistaPrint) featured a woman talking about her experience ordering business cards from the company. The voice-over stated, "Order 250 business cards for just £9.99 and get a card holder and delivery free … " On-screen text stated "250 cards £9.99 Free Delivery". Below that "Ex. VAT (20%). Conditions apply" was stated in smaller, paler text.
Issue
A viewer challenged whether the ad was misleading because:
1. the advertised price did not include VAT; and
2. it was not made clear that the quoted price was exclusive of VAT.
Response
1. VistaPrint said the ad clearly focused on business customers only. They said that the targeting was made clear by the nature of the product and the fact that the woman in the ad was talking about how she used the cards to promote her business.
Clearcast said they understood that VAT exclusive prices could be given if all or most consumers paid no VAT or could recover VAT. They said that the visual treatment of the ad and the voice-over made it clear that the ad was aimed at business owners, who would either pay no VAT or be able to recover VAT.
2. VistaPrint said that the ad featured large superimposed text indicating "EX.VAT (20%)" and believed that made it very clear that the price was exclusive of VAT. They said the exclusion of VAT was stated directly below the price in large writing so that it was clear how the price had been calculated.
Clearcast said that the ad featured superimposed text indicating "EX.VAT (20%)" at the same time as the offer was stated in the voice-over, which they believed made it clear in a timely way that the quoted price was exclusive of 20% VAT. They considered that the term "EX." was an extremely common abbreviation of "excluding" and that "EX.VAT" was a particularly common business phrase. They believed that, because the ad was clearly aimed at business owners, and it was made clear that the quoted price was exclusive of VAT, the ad was not misleading.
Assessment
1. Not upheld
The ASA noted that the woman featured in the ad was discussing her experience, as a business owner, of using VistaPrint's business cards. On-screen text identified the woman as "Emma Louise, Owner of Four Paws Dog Grooming", which we considered clearly referenced the woman as a business owner and not simply as a member of the public. We noted that the voice-over stated, "Every day millions of business owners count on VistaPrint to professionally promote their business easily and affordably" and considered that that highlighted the benefits of VistaPrint's business cards to business owners specifically. We therefore considered that the ad was clearly addressed at business owners, who would be able to recover any VAT paid, and concluded that the exclusion of VAT in the advertised price was not misleading.
On this point, we investigated the ad under BCAP Code rules
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
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.
and
3.3.3
3.3.3
the price of the advertised product or service, including taxes, or, if the nature of the product or service is such that the price cannot be calculated in advance, the manner in which the price is calculated
(Misleading advertising),
3.11
3.11
Qualifications must be presented clearly.
BCAP has published Guidance on Superimposed Text to help television broadcasters ensure compliance with rule
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
. The guidance is available at:
http://www.cap.org.uk/~/media/Files/CAP/Help%20notes%20new/BCAP_Advertising_Guidance_Notes_1.ashx
(Qualification) and
3.18
3.18
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product or service depicted in the advertisement.
and
3.19
3.19
Quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT. Such VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable.
(Prices) but did not find it in breach.
2. Not upheld
We noted that the VAT-exclusive qualification was presented in on-screen text below the price and was visible at the same time that the £9.99 price claim was made in the voice-over. This text remained on screen for the duration of time that the price claim was referred to. Whilst the colour contrast of the light grey text on the white background was not ideal, we considered that the placement of the qualifying text and the length of time that the text was displayed on screen meant that it was sufficiently legible for an interested viewer who made some positive effort to read it. We therefore concluded that the VAT-exclusive nature of the price (and the rate of VAT payable) was made clear and that the ad was not misleading.
On this point, we investigated the ad under BCAP Code rules
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
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.
and
3.3.3
3.3.3
the price of the advertised product or service, including taxes, or, if the nature of the product or service is such that the price cannot be calculated in advance, the manner in which the price is calculated
(Misleading advertising),
3.11
3.11
Qualifications must be presented clearly.
BCAP has published Guidance on Superimposed Text to help television broadcasters ensure compliance with rule
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
. The guidance is available at:
http://www.cap.org.uk/~/media/Files/CAP/Help%20notes%20new/BCAP_Advertising_Guidance_Notes_1.ashx
(Qualification) and
3.18
3.18
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product or service depicted in the advertisement.
and
3.19
3.19
Quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT. Such VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable.
(Prices) but did not find it in breach.
Action
No further action necessary.
