Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
Rule 20.8 states the information that marketing communications for business opportunities should contain, including the name and address of the marketer, a clear description of the work, likely earnings and a statement about financial investment. Although it need not be in the initial ad, all that information must be available, without charge, before participants commit to the scheme. In November 2003, the ASA decided that, because the franchise fee was stated in the initial ad and investors would receive a prospectus before commitment, the marketer did not need to include its full name and address in the initial ad (Support Aid Solutions, 19 November 2003). The ASA nevertheless concluded that the marketer had not substantiated that franchisees were likely to achieve the claimed earnings.
Other marketers offering business opportunities have also failed to convince the ASA that quoted earnings are realistic (GB Associates Ltd, 2 February 2005; Direct Route Insight Ltd, 13 October 2004, and Sensortrol Ltd, 28 May 2003). See entry on ‘Earnings’.