Ad description

A teleshopping ad broadcast on tjc, the Jewellery Channel, on 21 July 2015 depicted a reverse auction for a Kagem Zambian Emerald, White Topaz Bangle with platinum overlay sterling silver. When the phone lines for the auction opened, on-screen text stated "BUY NOW. £1196.99 P&P £4.95/day ...".

Issue

A viewer challenged whether the claim "BUY NOW £1196.99" was misleading and could be substantiated because they believed it exaggerated the value of the bangle.

Response

The Jewellery Channel Ltd said they produced the majority of the items which they sold and that their business model meant they were able to offer consumers competitive prices on the pieces they sold compared to the more traditional jewellers.

The Jewellery Channel said they were able to compare their pieces against other jewellery because of the detailed information provided by retailers about the stone weight, quality and metal used. They had a dedicated team member who checked the prices of similar products sold by other jewellers. By checking that information, it helped them to confirm that they could sell it for a particular price. They believed that procedure ensured that their “start” and “end” prices for their auctions related to market value.

The Jewellery Channel provided details of five gold emerald bangles which they had used as references to determine their start price for the advertised bangle. They acknowledged that all five included diamonds, whereas theirs did not, but said they had adjusted their start price to take that into account. They believed the adjustment in the start price and these reference products made sure that their start price related to the market value of such a piece.

Assessment

Upheld

The ASA noted that the initial “starting price” claim stated "BUY NOW £1196.99" and considered that by referring to £1,196.99, the Jewellery Channel implied that was the market value for the bangle. We therefore considered that viewers were likely to understand that price to be materially related to the usual retail price or a valuation that consumers could expect for the bangle.

To substantiate the claimed value of the bangle, we expected the Jewellery Channel to hold evidence that similar pieces of jewellery were similarly valued. We considered such substantiation could include evidence that the Jewellery Channel had sold the bangle at the “starting price” previously, or evidence showing that similar sterling silver bangles with emerald and white topaz of similar carat weight and quality had been sold at a similar price.

We acknowledged that the Jewellery Channel had selected five bangles with emeralds which they used as reference items on which to base their “start price”. In doing so, we considered the Jewellery Channel needed to ensure those reference bangles were sufficiently similar or equivalent to the advertised one. However, there were significant differences between the Jewellery Channel’s bangle and the five others. All of the other bangles were made with either 9ct or 18ct yellow or white gold and were set with diamonds. We understood that diamonds were a higher value gem stone than white topaz and that the type of precious metal used was also likely to influence the price of the bangles. We therefore considered the differences in precious metal and gemstones were too significant to render those five bangles as similar or equivalent items to the advertised bangle, even taking account of the price adjustment the Jewellery Channel had made. Because of that, we concluded the Jewellery Channel had not substantiated their starting price and therefore, they had exaggerated the value of the bangle.

The ad breached BCAP Code rules  3.1 3.1 Advertisements must not materially mislead or be likely to do so.  (Misleading advertising),  3.9 3.9 Broadcasters must hold documentary evidence to prove claims that the audience is likely to regard as objective and that are capable of objective substantiation. The ASA may regard claims as misleading in the absence of adequate substantiation.  (Substantiation) 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.  (Prices).

Action

The auction must not appear again in its current form. We told the Jewellery Channel Ltd not to use “starting prices” unless they held suitable substantiation to show they reflected the market value of the advertised item.

BCAP Code

3.1     3.18     3.9    


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