Background
Summary of council decision:
Two issues were investigated, both of which were Upheld.
Ad description
a. A website for an estate agent, www.hugowest.com/index.php, featured logos for The Property Ombudsman, The National Approved Letting Scheme and Safe Agent, and accompanying text stating "Hugo West is a member of the Property ombudsman, the National Approved Letting Scheme (NALS), Safe agent fully endorsed (SAFE) ...". It also featured a logo stating "THE SUNDAY TIMES ESTATE AGENCY of the YEAR 2014".
b. A property listing on SpareRoom.mobi stated "Whole property: £900pcm ... Security deposit: £900 ...".
Issue
The complainant challenged whether:
1. the logos and claims in ad (a) were misleading, because he understood that the advertisers were not members of the organisations listed and had not received the award listed; and
2. ad (b) was misleading, because he believed the stated security deposit and rent were incorrect and that the property listing omitted to state non-optional fees.
Response
West Property Consultants Ltd t/a Hugo West did not respond to the ASA's enquiries.
Assessment
Upheld
The ASA was concerned by Hugo West's lack of response and apparent disregard for the Code, which was a breach of CAP Code rule 1.7 1.7 Any unreasonable delay in responding to the ASA's enquiries will normally be considered a breach of the Code. (Unreasonable delay). We reminded them of their responsibility to provide a response to our enquiries and told them to do so in future.
1. We considered that Hugo West had not substantiated the claims that it was a member of the Property ombudsman, the National Approved Letting Scheme (NALS), was Safe agent fully endorsed and had won The Sunday Times Estate Agent of the Year 2014 award, and concluded that ad (a) was therefore misleading.
Ad (a) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer 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 the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising),
3.7
3.7
Before distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove claims that consumers are 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
3.50
3.50
Marketing communications must not display a trust mark, quality mark or equivalent without the necessary authorisation. Marketing communications must not claim that the marketer (or any other entity referred to), the marketing communication or the advertised product has been approved, endorsed or authorised by any public or other body if it has not or without complying with the terms of the approval, endorsement or authorisation.
(Endorsements and Testimonials).
2. We had seen no evidence which showed that the property's monthly rent was £900 or that the security deposit required was £900. We also considered that Hugo West had not shown that the property had no additional fees. We therefore concluded that ad (b) was misleading.
Ad (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer 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 the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising),
3.7
3.7
Before distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove claims that consumers are 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),
3.17
3.17
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product featured in the marketing communication.
3.18
3.18
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.
and
3.19
3.19
If a tax, duty, fee or charge cannot be calculated in advance, for example, because it depends on the consumer's circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated.
(Prices).
Action
The ads must not appear again in their current form. We referred the matter to CAP's Compliance team.
CAP Code (Edition 12)
1.7 3.1 3.17 3.18 3.19 3.3 3.50 3.7
