Ad description
A press ad for Phones 4 U stated "What's the upgrade deal of the week? Get this SAMSUNG GALAXY III, exclusively in AMBER BROWN from only £26 per month!*". Small print stated "*New connections only. Offer available when connecting to a new 24 month contract on selected networks prices £26 a month, plus initial handset cost of £49".
Issue
The Carphone Warehouse, who did not believe the price of the handset was sufficiently prominent, challenged whether the ad was misleading.
Response
Phones 4 U Ltd said the ad was part of a campaign to communicate their best upgrade deal each week. In that particular week their best deal was the Samsung Galaxy S III, which had previously been selling with an upfront cost of £149, in comparison to the lower cost in the ad of £49. They believed the average consumer would know they would have to pay an initial upfront price for the handset. They believed the asterisk next to "only £26 per month!" was sufficiently prominent to draw the reader's attention to the terms and conditions at the bottom of the ad, which included the price of the handset. They did not believe the ad implied the handset was 'free' or that £26 per month was the only cost associated with the handset. They believed the small print was sufficiently clear to be read by consumers once at a reasonable distance at a reasonable speed.
Assessment
Upheld
The ASA considered that the focus of the ad was on the particular handset offered. We considered that consumers would be aware that an initial upfront cost was sometimes associated with a mobile phone package, but we also understood that some packages did not include an initial cost for the handset. An asterisk linked the monthly package price to small print that included the handset price. However, we considered that in an ad that focused on a particular handset and gave a headline price of "only £26 per month", the initial cost of the handset was insufficiently prominent and should have been given in body copy immediately following the monthly price. We concluded that the ad breached the Code.
The ad breached CAP Code (Edition 12) rules 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (Misleading advertising) and 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. and 3.21 3.21 If the price of one product depends on another, marketing communications must make clear the extent of the commitment the consumer must make to obtain the advertised price. (Prices).
Action
The ad must not appear again in its current form.
