Advertisment
The advertisement was a page on the advertisers’ website which outlined the benefits of their ‘Lightning 500 Saver’ plan.
The benefits outlined were: –
• 100% Fibre to the Home connection (FTTH)
• Best in Class German engineered WiFi 6 Fritz!Box
• 500Mbps Download Speed
• 50Mbps Upload Speed
• Talk Unlimited …
• 12 month contract
Under the listed benefits was a price of €49.95. This had an ‘x’ struck through it and beside it €34.95 was displayed. Beneath this was a call-to-action button inviting consumers to ‘Join Now Pay Later’.
Beneath this it said ‘> Available to new customers only’. The presence of the dropdown message was signified with a triangle.
Text appeared when the dropdown message was clicked. This stated ‘Special Offer! Available to new customers only at €34.95 per month for 6 months (€49.95 per month for balance of 12-month contract). €54.95 per month thereafter. One time €24.95 activation fee applies.’ Directly beneath this message there was a link described as ‘Terms >’.
Complaint
The complainant believed that the advertisement gave the impression that the price of €34.95 was for the entire 12 months. They did not consider that the price increase to €49.95 after six months was sufficiently visible and as such a consumer could be misled into believing that the deal was better than it was.
Response
The advertisers said that the offer page displayed the first 12-month price of €49.95 and that this was crossed out with the special offer discounted pricing of €34.95 displayed beside it. They said, in the explanation of the offer, that it was ‘clearly called out’ that this special offer was applicable for the first 6 months and that the balance of the 12-month contract would be €49.95 per month.
The advertisers said that customers who opted for this package on their website were all individually telephoned by their sales team before an order was processed. They said that on these calls the pricing structure was outlined and that these calls were recorded and stored with a customer’s consent and that this practice was in line with distance selling regulations.
The advertisers felt that their pricing was transparent as a result.
Conclusion
Complaint Upheld.
The Complaints Council noted that the offer price of €34.95 was directly below the text which stated “12 month contract” and that the explanatory text was not visible unless a consumer clicked “Available to new customers only”. They considered that a consumer could reasonably understand that the cost would be the same for the duration of the contract. The Council considered that the offer price should have been accompanied by text to indicate it was for the first six months of the contract. They also considered that it would have been preferable had the further text been visible without requiring action by consumers.
The Council found, therefore, that the advertising was and in breach of Code Sections 4.1, 4.4, and 4.6.
ACTION REQUIRED:
The advertisement must not reappear in its current form.
