Ad description
A radio ad for Property Rescue Ltd, which offered to purchase properties from those experiencing financial difficulties, heard in March 2016. A voice-over stated, “Need financial help? You need it now, not next month or next year. That's why when Property Rescue buy your house they can give you a cash advance which will help you, you guessed it, right now. They can pay your standard legal fees. Is there no end to their loveliness? Sell your home fast at PropertyRescue.co.uk. They're buying houses all over Britain. Property rescue, problem solved.”
Issue
The complainant, who believed the ad omitted material information that customers would not receive the full market value of their property, challenged whether the ad was misleading.
Response
Property Rescue Ltd stated that the ad did not mention property value at all, and that this was in line with approaches used by other property-related businesses (such as estate agents) or companies buying cars for cash at below-market prices. They said the market value of a property was somewhat subjective and dependent on a variety of factors, including condition, location, and time on the market. They explained that they often sent separate surveyors or estate agents to value a property and that there could be a large variance in the valuations provided for the same property. Property Rescue noted that the ad directed people to their website, which made clear that full market value would not be paid. They said the first thing they would do when receiving an incoming enquiry would be to carry out a full 'fact-find' with the enquirer and explain their service and offer. All offers issued were 'no obligation' and would clearly advise how a property had been valued and that a proportion of the market value was being offered. Property Rescue therefore considered that there was enough material available to interested consumers prior to contacting them, and that at the point of contact it would be made clear the way in which the service operated.
This Is Global stated that a very similar ad had been centrally cleared. They said there was no suggestion in the script that the full market value of any property could be achieved and that it instead focused on the key properties of the service – speed of sale, cash advances and payment of legal fees. They believed sellers would have an understanding that any transaction – whether through the advertiser or a more traditional buyer-seller relationship – could lead to a sale below the property's full market value. Equally, they would be aware that any sale of property would be subject to conditions, a contract and acceptance of an offer from the buyer. They noted that the advertiser's website set out the major conditions of purchase and made clear that vendors would be presented with a no-obligation valuation that was typically 75–85% of the market value.
Assessment
Not upheld
The ASA considered that listeners would understand the ad as promoting a service through which a property could be sold rapidly in order to make cash readily available, and that they would also understand that the service was aimed at those in financial difficulties. The focus of the ad was on these aspects of the service and no claims were made in relation to the value of the property, whether to imply that the full value was given or that only a proportion should be expected. We noted Property Rescue and This Is Global's assertions that more detailed information about the service, including the proportion of the value that would be paid, was available on the website indicated in the ad, and that consumers therefore had access to it prior to making an enquiry. We considered that the decision to find out more about the service was, in itself, a transactional decision and that any material information likely to affect such a decision in context should therefore be available in the ad itself, rather than solely on the website, if its omission was likely to mislead.
We considered that consumers acting on an interest in the service as a result of hearing the ad would do so primarily on the basis that they would be able to sell their house quickly (and therefore receive a relatively fast cash payment in comparison to traditional methods of selling a house) and that the speed of service was therefore the key factor for the decision to find out more or enquire with the advertiser. We therefore considered that information about the proportion of market value paid was unlikely to affect this decision and, consequently, that in this context it was not misleading to omit that information. As such, we concluded that the ad did not breach the Code.
We investigated the ad under BCAP Code rules
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
and
3.2
3.2
Advertisements must not mislead consumers 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 consumers need in context to make informed decisions about whether or how to buy a product or service. Whether the omission or presentation of material information is likely to mislead consumers depends on the context, the medium and, if the medium of the advertisement is constrained by time or space, the measures that the advertiser takes to make that information available to consumers by other means.
(Misleading advertising) and
3.10
3.10
Advertisements must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
(Qualification), but did not find it in breach.
Action
No further action required.
