list of contributors - GALA

3. Misleading
Advertising
Topic: Advertising Standards Authority (ASA) Code of Advertising Practice:
Section II Clauses 4.2.1 and 19 (“misleading claims” and “pricing policy”)
and Appendix D, Clauses 3.1.7.1 and 5.1 (“obligations of mail order
advertisers” and “supply of services”)
Who: ASA Directorate
When: April 2005
Where: South Africa
What Happened: A consumer lodged a complaint against a Homemark television infomercial
promoting its Peel Away the Pounds weight loss product. The infomercial
described the various benefits of using the product and supplied details of
where it could be purchased.
The complainant submitted that the infomercial advertised a complete
system with supply for a month for R249.00, however upon calling the call
centre, the agent attempted to sell the complainant another product
apparently needed in order for the system to be most effective. In addition,
the infomercial, did not mention that a delivery charge of R60.00 was levied.
The respondent submitted that its infomercial clearly showed that all prices
quoted excluded post and packaging, and the amount charged varied from
customer to customer depending on their location.
The respondent submitted that the call centre agents do attempt to sell
further complementary products at special prices, but customers are not
obliged to purchase them. Furthermore, the respondent had refunded the
complainant the price of the product as well as the postage and packaging
costs.
The Directorate noted both parties’ submissions and the material submitted
and determined that the complaint relates to a service issue as the call centre
agent failed to clearly explain the status of the further product in relation to
the advertised product. This created an impression that the customer had to
buy the complementary product, which was not in fact the case.
The ASA can only rule on the content of advertising and does not have
jurisdiction over service related issues, and accordingly could not rule over
that aspect of the complaint.
The communication regarding the price comprised an on-screen message
and a voice-over, although the voice-over did not stipulate that the price did
not include post and packaging, the statement “R299 excl P&P” was
displayed on the screen each time the price was shown.
The abbreviation P&P is commonly used and is defined in the South African
Concise Oxford Dictionary as “postage and packaging”, therefore, the
hypothetical reasonable consumer would be aware that P&P refers to
postage and packaging.
The Directorate came to the conclusion that the infomercial did not
contravene any of the sections of the Code and the complaint was
accordingly dismissed.