Background

Summary of Council decision:

Two issues were investigated, both of which were Upheld.

Ad description

A website ad at www.streetwisenews.com/50k, headed "Discover How George Wins £50,000 A Year", included various claims about the success of the advertised gambling system, including "£980 A Week, £50,000 A Year, Tax Free … As Much Money As He Wants - Whenever He Likes! ... Basically I have found a way I can win an amount of money I choose to win every day! My chosen medium of enjoyment for this is horse racing but I wouldn't call this 'gambling' because I am very 'risk averse' and the system always win[sic] each day … This little system has the phenomenal ability to Double the bank every three months … In his system instructions he is going to show you exactly how to do this so that your money will grow just as fast as his own did. This means your success is 100% certain! ... George is 'getting on a bit' now but says that without a doubt these are the best and happiest years of his life. He doesn't have to work for 40+ hours a week any more or have any of the stress or expense of all the travelling to and from work … And instead of worrying about how to make ends meet and stretching the money to the end of the month, or seeing if he could afford the things he wants, he can finally relax safe in the knowledge that he has more than enough money to see him through … we have witnessed this system in action and we can verify that it absolutely will provide you with your chosen amount of tax-free cash and 'grant you your wish' every time you use it! … And remember, the system he uses … has virtually Guaranteed his future! You see when you get to age 62 or older you suddenly realize the awful reality of life on a much reduced income in the form of the 'Pension' you are going to have to live on in the near future lies ahead, and that can be a pretty terrifying prospect if that money is all you are going to have to live on to get by. … Did you know that most retirees suffer a 60% drop in income when they start drawing their pension? Think about it, could you get by with a 60% wage cut from tomorrow? … But fortunately you don't have to worry about this nightmare scenario because you have an absolutely fantastic option for a wonderful future of wealth and comfort and happiness right in front of you. … Today you find yourself in the truly enviable and fortunate position of being able to get hold of the information which will virtually guarantee you a future of comfort and prosperity".

Issue

1. The complainant challenged whether the claims, such as "this means your success is 100% certain", were misleading and could be substantiated.

2. The ASA challenged whether the ad was socially irresponsible, because it suggested that gambling could be a solution to financial concerns, an alternative to employment and a way to achieve financial security.

Response

1. & 2. Streetwise Publications Ltd said the advertising claims were based on mathematical facts and the real life experiences of the author. They said that bookmakers admitted that around 5% of betters were net winners, and they believed that those 5% of people used strategic betting systems, mathematical analysis and financial systems such as the advertised system. Streetwise Publications said that making a full- or part-time income from gambling was feasible and proven, which was evidenced by the existence of taxation regulations relating to the income of professional gamblers and a comment from a professor of economics in a news article that there was scope for smart people who had sufficient time to invest to make a full-time job of gambling.

Streetwise Publications said it was an accepted fact that approximately one-third of all favourites won from all UK races on average, and that the system was based on that statistic. They provided examples of how the system would be applied and a copy of the booklet which explained the system. They said the system enabled a doubling of the bank every three months, and that statistics supporting its success were available in the Racing Post. They said their assertions were proven by the mathematical computer algorithms of the software that could be purchased to operate the system automatically. They said the system proved that £50,000 a year was easily achievable over time, even starting with only a £500 bank.

Assessment

1. Upheld

The ASA considered consumers would understand the claims such as "this means your success is 100% certain" to mean that all users of the system had been successful in profiting from the system, and that those profits had been in line with those referenced in the ad. We noted Streetwise Publications' assertions that the system had been successful for its author, and that the use of mathematics ensured the system would always be successful, but noted that they had not provided any evidence to demonstrate that any users of the system had been successful. We therefore concluded the claims for the systems' success were misleading and in breach of the Code.

On this point, the ad breached CAP Code (Edition 12) rules  3.1 3.1 Marketing communications must not materially mislead or be likely to do so.  (Misleading advertising) and  3.7 3.7 Before distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove claims that consumers are likely to regard as objective and that are capable of objective substantiation. The ASA may regard claims as misleading in the absence of adequate substantiation.  (Substantiation).

2. Upheld

The ad stated that the claimed author of the system had been able to retire from work by using the system as an alternative income, and that using the system meant he could "finally relax safe in the knowledge that he ha[d] more than enough money to see him through". We further noted the ad stated that "most retirees suffer a 60% drop in income when they start drawing their pension" and offered the system to readers as a way to ensure their financial security in retirement. We considered the ad therefore suggested gambling could be a solution to financial concerns, an alternative to employment and a way to achieve financial security, which was in breach of the Code.

On this point, the ad breached CAP Code (Edition 12) rules  1.3 1.3 Marketing communications must be prepared with a sense of responsibility to consumers and to society.  (Social responsibility),  3.14 3.14 Marketing communications must not claim that products can facilitate winning in games of chance.  (Prohibited claims) and  16.1 16.1 Marketing communications for gambling must be socially responsible, with particular regard to the need to protect children, young persons and other vulnerable persons from being harmed or exploited.    16.3 16.3 Marketing communications must not:  and  16.3.4 16.3.4 suggest that gambling can be a solution to financial concerns, an alternative to employment or a way to achieve financial security  (Gambling).

Action

The ad must not appear again in its current form. We told Streetwise Publications Ltd they should not make unsubstantiated claims about the success of gambling systems, and that they should not suggest gambling could be a solution to financial concerns, an alternative to employment or a way to achieve financial security.

CAP Code (Edition 12)

1.3     16.1     16.3     16.3.4     3.1     3.14     3.7    


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