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.
Rule 20.2 states “…Quoted earnings must be precise; if one has to be made, a forecast must not be unrepresentative. If income is earned from a basic salary and commission, commission only or in some other way, that must be made clear”.
When considering changing jobs, one of the key factors is likely to be the pay. Whether they are offering genuine vacancies, business opportunities or a homework scheme, marketers need to be truthful about pay. For the latter two categories, stating a realistic earnings figure might be more complicated but marketers should state the level likely to be attained by an average respondent, not a level based on a few, unrepresentative high performers. Years ago, the ASA upheld a complaint about a financial institution that chose to imply its “average advisor” would earn £30,000. Because the £30k was a mean average and not a modal average, the ASA concluded that the claim was misleading: high earners skewed the average to £30,000 but most advisers earned less.
In October 2004, the ASA upheld a complaint about a business opportunity that made earnings claims based on the estimated income of one inaugural licensee. Because the performance of one person was judged inadequate to prove the advertised earnings figures were generally attainable, the ASA asked the marketer to remove the claims (Direct Route Insight Ltd, 13 October 2004).
Other earnings claims might be found to be misleading because they simply do not state that they comprise a basic salary and a commission or overtime component. A chauffeur company was asked to state the amount of overtime needed to achieve the quoted earnings (Tristar Cars Ltd, 6 October 2004). Marketers should indicate, for example, with claims such as “OTE” or “inc overtime”, whether quoted earnings are not basic.
Marketers should remember that, even when quoting bonus-enhanced salaries or OTE, figures should be generally attainable and demonstrable. Marketers who cannot substantiate their earnings claims will breach Rule 3.7 of the Code (Docklands Car Ltd, 6 October 2004).
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Last modified : 03 August 2010