Recent Adjudications
As well as the Law, marketers need to be aware of the various other Regulatory bodies than can cancel activities or fine promoters.
The Advertising Standards Association
The ASA operates according to the BCAP and CAP Codes and generally responds to complaints either from the public or frequently from Competitors. Some recent examples of adjudications in Spring 2009:
- Grand Central Railway Company was in breach as a result of an offer carried on front page of a newspaper : "FREE Rail Travel to London" : it failed to make clear the fact that it was dependent on the pruchase of another return ticket to the get the free one.
- An advert in The Sunday Sport was in breach. "Free DVD .....Michelle Thorne strips...." A reader challenged the use of the word "free" because in order to view some sections of the DVD you had to obtain a code via a premium rate phone call. ASA felt that the offer was "misleading by omission - for not mentioning this fact.
- National Sunday paper was in breach with their offer of a "Free Home Energy Monitor, phone our special hotline and collect three tokens" .They failed to state that the phone call was to be charged at a premium ( but not excessive rate) and offers can only be described as free if consumers pay no more than the minimum, unavaoidable cost of responding to the promotion". The three tokens were fine, but the use of the premium rate call was a breach.
PhonePayPlus
PPP regulates the premium rate phone industry and has the ability to both levy fines and shut down services very rapidly. Examples of recent adjudications from April 2009 include :
Five companies were fined a total of over £1 million for making calls to consumers, but cutting off before connection. Consumers woudl then frequently be intrigued by the missed call and return it not knowing it was an 070 premium rate number that incurred them in a high charge for no benefit. The highest fine of £500,000 went to Enbel Ltd and they were also ordered to refund callers.
