ASA Adjudication on kgb (UK) Ltd
kgb (UK) Ltd
Cardiff Gate Business Centre
25 July 2012
Internet (sales promotion)
Number of complaints:
An offer on a daily deal website, seen on www.kgbdeals.co.uk stated "£34 for a one-day kite surfing course worth £99 at South Wales Kite Surfing - save 66%". The expiry date was 30 August 2012.
The complainant challenged whether the ad was misleading by omission, because it failed to make clear significant conditions of the offer.
CAP Code (Edition 11)
CAP Code (Edition 12)
kgb (UK) Ltd (kgb) said, due to an administrative error, they did not have a copy of the signed contract with South Wales Kitesurfing (SWK). They also said, because SWK did not respond to their enquiries in relation to the complaint, they were unable to provide any evidence. They said SWK was given the opportunity to provide them with details of any significant conditions in the Merchant Order Form (MOF) but had not mentioned additional fees for weekend courses, or that the one-day course was only available during the working week. They said if they had been made aware of those conditions, they would have communicated them in the ad.
SWK said the ad appeared on the website without their prior consent and that they had not signed a contract with kgb. They also said all weekend slots had been booked when the complainant contacted them and that, had they been able to book a weekend slot, they would have needed to attend the full course, which cost an additional £100 per person. They said their courses were weather dependent and that, due to poor conditions this year, they had a backlog of students.
The ASA understood that the complainant purchased the offer and was informed by SWK that, in order to book a session at a weekend, she would have to purchase the full two-day course for an additional fee of £100 per person. We also understood that, while the ad stated that the offer expired on 31 August, the complainant was informed that the offer expired on 1 August and during that month the centre would be closed. The promotion had failed to make clear that the offer was only redeemable on weekdays, or consumers would need to pay an additional charge of £100 per person. Because significant conditions about when the offer could be redeemed had not been included, the ad was misleading. Furthermore, the closing date had changed without any efforts to ensure that consumers were not disadvantaged. We therefore concluded that the promotion breached the Code.
The ad breached CAP Code (Edition 12) rules 3.1 and 3.3 (Misleading advertising), 3.9 (Qualification), 8.2 (Sales promotions), 8.14 (Administration) and 8.17.4e (Significant conditions for promotions).
The ad must not appear again in its current form. We told kgb to communicate all significant conditions in future, which included those relating to the closing date. We also told them to ensure that future sales promotions dealt fairly with consumers.