bulletin
The right to be 'free'
17 November 2008
Advertisers, retailers, manufacturers and
publishers have for many years run promotions allowing consumers to
get their hands on free products. Understandably, these promotions
are usually very popular and successful with consumers.
However, recent changes to legislation have imposed conditions
on when the word 'free' can be used in conjunction with a
promotion. The Consumer Protection from Unfair Trading Regulations
2008 state that the word 'free' can only be used if the consumer
has nothing to pay other than the unavoidable cost of responding to
the promotion, and collecting or paying for delivery of the free
product.
Last month, Mirror Group Newspapers Ltd and Express Newspapers
(trading as The Daily Express), were the subject of adverse
adjudication by the Advertising Standards Authority (ASA), which
highlighted these changes. In each case, the ASA upheld complaints
which had been made against the papers that promotions they had run
were not truly 'free'.
Express Newspapers had run a promotion offering readers a free
AA road atlas from Somerfield, worth £6.99. Readers had to cut out
a voucher to claim the atlas. Readers could either claim the atlas
in store, or claim by posting the coupon, together with a cheque
for £3.99 to cover the cost of postage, packaging and
administration.
In relation to the postal route to claiming the atlas, the ASA
was not satisfied that the promotion was 'free'. This was because
an element of the cost was stated to be “for administration”. The
ASA were also not shown evidence that readers claiming the atlas by
post would pay no more than the true cost of delivery. In other
words, it was found to be in breach of the ASA’s code.
The Mirror Group advertised an offer for a free USB memory
stick. To get the USB stick, consumers had to enter their details
online and pay £1.99 for postage and packing. Alternatively they
could send a self-addressed envelope together with a cheque for
£1.99.
The Mirror Group admitted that the advert should have included a
free route, in which consumers could send a self-addressed
envelope, with stamps to the value of the cost of return postage
only, as opposed to the sum of £1.99.
The ASA in each case held that the adverts must not be repeated
in their current form.
In addition to ruling on issues relating to the use of the word
'free', the ASA also has powers to review and adjudicate on adverts
that mislead (in particular, those comparing rival products) or
offend. There are specific rules in respect of food and drinks,
health and beauty, advertising to children, nutrition claims,
environmental claims, gambling and prize promotions.
Breaches of the Consumer Protection from Unfair Trading
Regulations 2008 can also be enforced by Trading Standards or the
OFT, which could possibly lead to a prosecution and a fine.
talk to us
save to PDF
The content of this bulletin is provided for the purposes of
general interest and information. It contains only brief summaries
of aspects of the subject matter and does not provide comprehensive
statements of the law. It does not constitute legal advice and does
not provide a substitute for it.