A promotion on www.Groupon.co.uk offered an E-cigarette kit. Text stated "SKYCIG Deluxe E-Cigarette Kit Including Five Varieties of Refills and Two Long-Lasting Batteries for £19.95 With Free Delivery (Up to 78% Off) ... You save £70.04 ... Highlights • Deluxe kit, with freedom charging case, USB charging cable, mains adaptor, and a car charger • Five flavoured cartridges • Contains classic tobacco, tobacco gold, Crown tobacco, Crown menthol, and Crown cherry tobacco flavoured refills • Travel case, USB charging cable, and two long-lasting batteries also included".
The complainant challenged whether the savings claim was misleading and could be substantiated.
MyCityDeal Ltd t/a Groupon said they took the issue of price verification very seriously and checked all their deals before they featured them to ensure any savings claims were genuine. They explained that the deal featured on the Groupon site from 16 to 18 April and 21 to 22 April 2013 and that at the time the deal went live the savings claim was based on an established selling price for the "Deluxe E-Cigarette Kit" as packaged and sold by SKYCIG. They supplied five sales invoices from SKYCIG dated between 18 February and 4 April 2013 which they believed confirmed that the Deluxe kit had been sold for £89.99 for a period of seven weeks before the Groupon promotion went live. They therefore believed that the invoices showed that £89.99 was a fair, established selling price for the Deluxe Kit.
The ASA considered that the sales invoices provided showed that the "Deluxe E-Cigarette Kit" had been sold at £89.99 before the deal was published, and that this was an established price. We therefore considered that the savings claim of "Up to 78% off", which appeared in the ad, was genuine. As Groupon had provided sufficient evidence to substantiate the savings claim, we concluded that the claim was not misleading and not in breach of the Code.
We investigated the claim under CAP Code (Edition 12) rules 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (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), 8.1 8.1 Promoters are responsible for all aspects and all stages of their promotions. and 8.2 8.2 Promoters must conduct their promotions equitably, promptly and efficiently and be seen to deal fairly and honourably with participants and potential participants. Promoters must avoid causing unnecessary disappointment. (Sales promotions) and 8.14 8.14 Promoters must ensure that their promotions are conducted under proper supervision and make adequate resources available to administer them. Promoters, agencies and intermediaries should not give consumers justifiable grounds for complaint. (Administration), but did not find it in breach.
No further action necessary.