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.
The extent to which the ASA covers the advertising of financial products is limited and readers should refer to the entries on “Financial Products and Services” and “Consumer Credit” for general information on financial products. In short, the CAP Code regulates aspects of financial ads that are not regulated by statute. It requires marketers to present their marketing message in a way that is going to be understood by the audience and state the nature of any contract they are offering (including any costs) unless the ad is short or general and full details are provided before commitment (Rules 14.1 and 14.2). “Non-technical” aspects of financial marcoms (for example, offence, social responsibility, superiority claims, fear and distress, competitor denigration) are likely to fall within the remit of the CAP Code, not the statutory regulations.
For example, consider an advertisement that is for a business contract plan that enables consumers to pay for a car in monthly instalments of £199 but requires them to pay a £3,000 deposit and an optional £7,000 final payment and has a headline of “£199 a month”. The ASA has ruled that the ad is likely to mislead readers into thinking only the monthly costs are payable. Even if the body copy explains the deposit and optional final payments the advertisement is still problematic, because the headline has arguably been contradicted by the body copy. The headline should be amended to reflect the offer accurately, for example “£199 a month (plus deposit and optional final payment)” or the reference to the deposit and the optional final payment could be stated in a sub-heading next to the headline. Alternatively, the headline claim could be amended to explain that the £199 a month is merely one element of the offer (for example “Our great hire purchase deal includes monthly payments of £199 a month”), with the body copy explaining the other payments in more detail.
Marketers should take care when expressing a price prominently because small print must not contradict an impression that the car can be bought for that price. If they are attached to the headline price, significant extra costs should be made clear. Such headline prices should be immediately and prominently qualified and should not be contradicted by the explanatory copy. As with other products, marketers should bear in mind that qualifying claims can expand on primary claims, or explain them in other ways, but should not constitute so great a qualification as to contradict the primary claim. A qualifying claim, however prominent, might not go far enough in removing the misleading impression given by the primary claim. To help marketers, CAP has issued a Help Note on Claims that Require Qualification, which contains useful guidance on qualifying and primary claims.
Also see entries on “Financial Products and Services” and “Consumer Credit”.
Last modified : 03 August 2010