Who: The ASA
Where: United Kingdom
When: 20 April 2023
Law stated as at: 5 May 2023
What happened:
In a typical year, 70% of complaints that the ASA receives are regarding potentially misleading advertising. In response to this, the ASA created a checklist covering some of the key considerations to avoid misleading consumers.
1. Don’t omit material information
The term “material information” refers to information that consumers need to make informed decisions regarding a product or service. Consumers should not be misled by this information being presented in an unclear, unintelligible, ambiguous or untimely manner. Businesses should make sure that all material information relevant to the advertised product or service is included.
2. Hold evidence for all objective claims
Any objective claims made in ads, including objective comparisons and testimonials, must be substantiated by evidence.
The ASA will consider how consumers are likely to interpret a claim. Ads must be substantiated as they will be understood by the average consumer; substantiating the claim the way that the business intended it to be understood won’t pass the test if the likely interpretation differs from the intended meaning.
Clearly exaggerated claims, claims that are unlikely to be taken literally, and clear statements of opinion do not require substantiation.
3. Present qualifications clearly
It might be necessary to explain limitations or conditions, clarify the meaning of a primary claim, or convey other relevant information through qualifications.
Qualifications must be clear and prominent and must not contradict the claims they qualify. The ASA has stated that the presentation of a qualification (for example, text size, position, overall context, the significance of the information, and the nature of the medium) will affect whether a qualification is considered sufficiently prominent.
4. Don’t exaggerate
When advertising, advertisers should ensure that they do not exaggerate the capability or performance of a product in a way which is likely to mislead the consumer.
5. Make sure your price claims are accurate
It is important that pricing should relate to the product advertised and must include all non-optional charges (such as VAT and booking fees) and any applicable delivery charges. The ASA has specific guidance on what constitutes a non-optional charge.
When advertising ”up to” or ”from’ pricing’, businesses must make sure that a significant proportion is available at the price stated.
6. Make any limitations on availability clear
Before advertising a product, businesses should estimate the likely demand of the promotion and include information about any limitations if the demand is greater than the supply. The marketer must also monitor stock levels and adjust marketing communications if the product advertised becomes unavailable.
If you include prices in travel advertising or run a promotion, there may be additional availability requirements.
Why this matters:
It is crucial for companies to take on board the ASA’s advice on misleading advertising because it can help them avoid the consequences of non-compliance. By following these steps, companies can mitigate the risk of reputational damage, financial penalties and legal action, and can help in safeguarding their reputation and bottom line.
