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.
In 2024 the ASA considered several ads for sales promotions on retirement properties. These are homes available only to owners or tenants over a certain age, usually 60, that cater specifically for people of that age.
Omitting significant conditions is likely to mislead
Include information on service charges
Specify time limitations
The ASA ruled that stating in an ad that a cashback promotion was available “for a limited time only” was not sufficiently clear to readers Because the end date of the promotional offer was material information which was likely to affect a reader’s decision to participate, it should have been clearly stated in the ad. (Churchill Retirement Living Ltd, 4 December 2024)
Omitting significant conditions is likely to mislead
Even in an ad that is limited in space, stating “terms and conditions apply” is unlikely to be enough to ensure that readers are not misled. Significant conditions likely to affect a reader’s decision to participate, such as how cash back is calculated, or that the offer applies only to new properties, should be stated in the ad. It is not enough to refer readers to a website. (Churchill Retirement Living Ltd, 4 December 2024).
Terms and conditions should be clear and legible and prominent enough that consumers are unlikely to overlook them. If they qualify a headline claim, they should be clearly linked to that claim. (Pegasus Homes Ltd 13 November 2024).
Include information on service charges
‘Service charges’ are compulsory, ongoing fees that may be payable on retirement homes, leasehold properties and sometimes on freehold properties, usually for maintaining the property.
The ASA ruled that the omission of service charge costs in an ad for retirement homes was misleading: the price of the service charge was material information and consumers should have been made aware of it. Because the service charge was a non-optional fee which had been excluded from the ad, and because the ad did not make clear that it was excluded or how the charge was calculated, the ad was found to be misleading (Pegasus Homes Ltd 13 November 2024).
Rent to Buy
‘Rent to buy’ schemes allow consumers to rent a property in a retirement community before deciding to buy. Ads including promotions for this type of scheme must also communicate all applicable significant conditions or information, including a prominent closing date, where the omission of such information is likely to mislead consumers (Pegasus Homes Ltd, 13 November 2024)