Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
Some marketers, especially tradesmen advertising in local papers or directories, claim they do not charge a “call-out” fee. Some do not charge for the time spent travelling to the caller’s home and for the initial diagnosis of the problem. If callers may decline work without incurring a cost, the ASA has concluded that marketers may legitimately claim “No Call Out Charge” in their ads. If, however, callers are charged a minimum hourly rate, payable from the moment the tradesman enters the house, marketers may not claim “No Call Out Charge”. In simple terms, no work should mean no charge (A to Z Appliance, 25 October 2006; 1ST Access Ltd, 31 January 2007, and Actionline Plumbing and Drainage, 20 June 2007).
The situation is slightly different if extensive diagnostic work is essential. If the marketer can show that a diagnostic charge is levied only in exceptional circumstances in which it is impossible to identify or locate the problem without considerable work, the ASA is likely to consider the claim “No Call Out Charge” is still acceptable. Any charges that are necessary as a result of extensive diagnostic work should be made only with the prior agreement of the caller.
The ASA has ruled against advertisers that claim not to charge a call-out charge but charge a ‘diagnostic fee’ if customers do not have remedial work carried out. Although one ad stated “No Call Out Charge … Diagnostic work charged unless work undertaken”, the ASA concluded that in most instances the ‘diagnostic fee’ amounted to a call-out charge (Premier Electrics, 4 August 2004). Consequently, it believed the sub-heading contradicted, not clarified, the headline. In those circumstances CAP advises against claims such as “No call out charge” but believes claims such as “Call out charge off-set against cost of work” are likely to be acceptable. Marketers would have to be able to show, however, that they did genuinely redeem the cost of call-out and they had not simply inflated their prices to cover the ‘discount’ offered.
Marketers might want to check the Department for Business Enterprise & Regulatory Reform (BERR) Pricing Practices Guide, which supports the ASA’s position. The guide states that claims such as “Free call out” should be made only if consumers pay no charge unless remedial work is undertaken with their agreement: consumers should not be charged an initial diagnostic fee. If they charge for diagnostic work, marketers should ensure that the consumer is made aware of that charge before the diagnostic work is carried out. The guide states that, if they make a minimum call-out charge or other flat-rate charge, marketers should ensure that the consumer is aware of the charge and whether the price may be higher dependant on certain circumstances (for example if work takes longer than a specific time), See www.berr.gov.uk.
See ‘Compulsory Charges’.
Last modified : 29 June 2010