Ad description
A web page for a Phones 4 U promotion, was headlined "Free Wireless Speaker With 4G Deals". The web page featured images and a video of the speaker being offered. Text about the promotion stated "To celebrate the continued growth of 4G, and of course Christmas, we're offering you the chance to get your mits on a free wireless Bluetooth speaker worth £120. Order any 4G smartphone on a 4G tariff between now and Christmas and we'll give you this awesome gift for absolutely nothing".
Issue
The complainant challenged whether the claim "worth £120" was misleading and could be substantiated, because they believed the speaker was worth significantly less than this amount.
Response
Phones 4 U said the speaker had been advertised and sold for £120 between 31 August 2013 and 31 December 2013. Phones 4 U provided invoices which demonstrated the speakers had been sold in their stores for £120. They explained that the speakers had been sold at this price for in excess of 28 days prior to the start of the promotion. As such they believed they had acted in accordance with the BIS Pricing Practices Guide. Phones 4 U said that they were the exclusive UK retailer of the product. They explained that when they set a price for a product they sell on an exclusive basis, they look at similar products on the market. Phones 4 U provided us with screenshots of other speakers available through popular online retailers, which they believed to be comparable in quality to the one they were selling and which cost more than £120. They said that they therefore believed the appropriate retail price for the speakers would be £120.
Assessment
Not upheld
The ASA acknowledged that the complainant had seen identical speakers available online for around £60. Although we noted that non-UK websites, as well as individual online sellers in the UK may have sold the speaker for less, we noted that at the time the complaint was made, Phones 4 U was the exclusive UK retailer for the speakers both in-store and online. We acknowledged that Phones 4 U had considered comparable products that were available on the market when they determined that the speakers would cost £120 and that they had provided us with examples of these. We noted that the speakers had been on sale for £120 for in excess of 28 days prior to the start of the promotion and Phones 4 U had provided us with invoices that demonstrated that they had sold the product at this price. We therefore concluded that the ad did not breach the Code.
Investigated 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), 3.11 3.11 Marketing communications must not mislead consumers by exaggerating the capability or performance of a product. (Exaggeration) 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).
Action
No further action necessary.
