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.
Price statements must relate to the product featured in the marketing communication. (Rule 3.17). The ASA has upheld complaints about marketing communications, particularly for cars and computers, that featured a product that cost more than the featured price (ASA decision: Tiny Computers Ltd, 20 June 2001).
Marketers should not feature a picture of a top-of-the-range product (e.g. a car) and quote in the headline a lower price in the range, even if the price of the illustrated model is stated with less prominence (Rule 3.17 and ASA decision: Daihatsu, Jan 1999). Similarly, even if that price is prefaced by ‘from’, consumers might still infer that it relates to the model shown (ASA decision: Volkswagen Group, Jan 1998).
In 1999, the ASA upheld complaints against several car finance marketing communications featuring headlines such as “Yours for just £199 a month” ruling that they gave a misleading and confusing impression. Consumers found out only after reading less prominent copy in the ad that a large deposit and optional final payment was usually required to take advantage of the finance offer. As a result, the way in which the motoring industry advertised car finance deals changed and marketers must now give more prominence to the deposit and final payments so that consumers are given a clear and simple understanding of the total costs involved. They must ensure that headline claims such a “for just £199 a month”, which could imply that no other costs are involved, are immediately and prominently qualified and not contradicted by any of the qualifying copy. An acceptable claim might be “For just £199 a month (plus deposit and optional final payment)”. If the headline is phrased in a way that implies extra costs are involved, e.g. “Our amazing deal includes monthly payments at just £199*” it might be acceptable to link it to a footnote that explains the deposit and final payments (ASA decisions: MG Sports Cars; Ford Motor Company; Chrysler Jeep Imports UK; Mercedes Benz (UK) Ltd all Aug 1999; CAP Help Note on Claims that Require Qualification).
Quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers (Rule 3.18). In some circumstances, e.g. where marketing communications are likely to be read by businesses able to recover VAT, prices may be quoted exclusive of VAT or other taxes and duties, provided prominence is given to the amount or rate of any extra costs (See CAP Help Note on VAT Price Quotations for detailed advice).
Marketing communications that quote fares for flights and cruises should ensure that the prices include all taxes and other charges paid at the point of purchase of the ticket, whether they are levied in the UK or abroad (e.g. Air Passenger Duty ‘APD’) (See CAP Help Note on Travel Marketing Communications).
If the price of one product depends on another, marketing communications must make clear the extent of the commitment the consumer must make to obtain the advertised price (Rule 3.21). For example, a promoter offering a tie for £1 when customers buy a shirt for £20 cannot have an unqualified claim of “buy a tie for £1”. Such a promotion would need to be clarified immediately and prominently to explain customers’ financial obligation; for example, the promoter could claim “Get a tie for a pound when you spend £20 or more on selected shirts”.
Price claims such as “up to” and “from” must not exaggerate the availability or amount of benefits likely to be obtained by the consumer (Rule 3.22). A useful rule of thumb is that 10% of the products or services advertised should usually be available at the "from" or "up to" price (ASA decision: Thomson travel Group t/a Thomson, 9 May 2001).
Comparisons with recommended retail prices (RRPs) are likely to mislead if the RRP differs significantly from the price at which the product or service is generally sold (Rule 3.40). This requirement is different from the line taken under the tenth edition of the Code when in general, the ASA Council had ruled that RRPs and other, similar price claims should equate to prices at which the product has been sold or offered for sale (ASA decisions: Vitamins Direct, Jan 1997; BBC Magazines Ltd, July 1999; Zeon, 21 Nov 2001).
Marketers should remember that prices, whether recommended retail prices or not, should be genuine and not misleading (ASA decision: BKCG, 10 Jul 2002).
See entries on ‘Motoring’, ‘Car Finance & Leasing’ and ‘RRPs’. See also CAP Help Notes on Travel Marketing Communications and VAT Price Quotations.
Last modified : 25 November 2010