Background
Summary of Council decision:
Five issues were investigated, all of which were Upheld.
Ad description
A paid-for Facebook ad and a landing page on a website for Save-ExtraS, https://save-extras.com, seen in July 2020:
a. The paid-for Facebook ad showed a young man holding up a notice on which handwritten text stated “I am finally DEBT FREE! £9412 paid”. Text above the photograph stated “Anyone can now resolve unsecured debt: credit cards – lines of credit – personal loans. Take this 60-second quiz to qualify!”. Text underneath stated “Finally, This Special Program helps getting out of debt!” next to an “Apply Now” button.
b. The landing page on the website showed a credit card being cut in two with a pair of scissors. Text stated “Finally – A Solution For Heavy Credit Card Debt … there are lots of reasons why upstanding citizens can find themselves in a situation where they had to accumulate unsecured debt … and don’t know how to get out of it. But, you’re not alone with that situation … Fortunately, there is a program called “Debt Relief” to help UK Citizens to get out of this downward spiral. They consolidate all owed debt into a single monthly payment and reduce the amount in total by negotiating with the credit card company on a bigger scale thus easing the monthly burden – Go Throught [sic] This Quick Quiz To See If You Qualify For Debt Relief”. Successful enquirers were shown a page on which text stated “Good News! – It looks like you qualify for Debt Relief program! [sic] … Next Step [Get Free Evaluation button]”.
Issue
The ASA challenged whether:
1. the claims “Anyone can now resolve unsecured debt” and “Take this 60-second quiz to qualify!” in ad (a) were misleading, because there were restrictions on suitability for an IVA/DMP (individual voluntary arrangement/debt management plan) for which respondents were ultimately referred;
2. the claims “Take this 60-second quiz to qualify!” in ad (a) and “Go Throught [sic] This Quick Quiz To See If You Qualify” in ad (b) exaggerated the speed of the service;
3. the reference in ads (a) and (b) to taking a “quiz” irresponsibly trivialised an application for such a service;
4. the references to “This Special Program [sic]” in ad (a) and “there is a program [sic] called ‘Debt Relief’” in ad (b) were misleading because there was no “Debt Relief” programme and they exaggerated the “special” nature of an IVA/DMP for which respondents were ultimately referred; and
5. ad (b) made clear that it was promoting an IVA/DMP and that risks and fees applied to those solutions.
Response
Flexible Digital Solutions Ltd said the ad was run by an affiliate. They said they made it compulsory with all affiliates they worked with that they saw a copy of an ad before it went live, but that did not happen in this case. They did not condone the approaches used and said they would take up the matter with the affiliate to ensure future ads complied.
1. Flexible Digital Solutions said the end clients they worked with could help with most cases in terms of debt level and creditor. For cases they were unable to help with, the customer would be referred to a debt charity or the most relevant avenue, depending on their circumstances.
2. Flexible Digital Solutions did not provide a substantive response to this point.
3. Flexible Digital Solutions took on board the point that taking a “quiz” irresponsibly trivialised an application for such a service and said that format would not be used in any future marketing campaigns.
4. & 5. Flexible Digital Solutions did not provide substantive responses to these points.
Assessment
1. Upheld
The ASA welcomed Flexible Digital Solutions’ acknowledgement of the issues raised and their undertaking to ensure future ads complied. We considered consumers would interpret the claims to mean that, by taking the quiz, anyone would be able to resolve unsecured debt. In reality, however, Flexible Digital Solutions could only refer on enquirers who met the eligibility criteria for an IVA or DMP. There would therefore be enquirers whose debt Flexible Digital Solutions were unable to help with. Because of that, we concluded that the ad was misleading.
On that point ad (a) breached CAP Code (Edition 12) rule 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (Misleading advertising).
2. Upheld
We considered consumers would interpret the claims to mean that, by contacting Flexible Digital Solutions, they could begin to resolve their debt problems immediately. We considered the wording of the claim in ad (a), “Take this 60-second quiz to qualify!”, suggested that enquirers would qualify simply by taking the quiz. We acknowledged that the wording of the claim in ad (b), “Go Throught [sic] This Quick Quiz To See If You Qualify”, was more cautious, but that nevertheless the idea of a “Quick Quiz” suggested a quick and easy decision. In reality, however, Flexible Digital Solutions would only pass on an enquirer’s details to a third party, after which creditors would need to agree to a client taking out an IVA and a payment schedule would need to be drawn up. We considered the claims over-simplified the process and therefore exaggerated the speed with which debts could be reduced. We therefore concluded that the ads were misleading.
On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
3. Upheld
We welcomed Flexible Digital Solutions’ assurance that a “quiz” format would not be used in future marketing campaigns. Given the potentially far reaching and long lasting consequences of debt and of taking out an IVA to resolve it, we considered that referring to the eligibility checking process as a “quiz” made it sound lighthearted and inconsequential, and therefore encouraged consumers to make an enquiry without giving it serious consideration. We therefore concluded that the ads were irresponsible.
On that point ads (a) and (b) breached CAP Code (Edition 12) rule 1.3 1.3 Marketing communications must be prepared with a sense of responsibility to consumers and to society. (Responsible advertising).
4. Upheld
We considered IVA/DMP was one of many ways of helping to resolve debt, but that it was important that consumers considered carefully which option was best for their particular circumstances. We considered the references to a “special” programme and “a program [sic] called ‘Debt Relief’” made the solution offered by Flexible Digital Solutions appear benign and more tailored to their situation than other solutions might be. We considered that encouraged consumers to enquire without the consideration they might give if they knew that, if eligible, the only next step was that they would be put forward for an IVA/DMP. We therefore concluded that the ads were misleading.
On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
5. Upheld
The ad referred generically to a “solution” and “a program called ‘Debt Relief”. Eligible enquirers were told “Good News! – It looks like you qualify for Debt Relief program! [sic]”. Although the only next step for eligible enquirers was that they would be put forward for an IVA/DMP, there was no mention of IVA/DMP – terms which consumers might be familiar with and which they might know needed to be approached with caution. The ad also showed a credit card being cut in two with a pair of scissors and went on to refer to people who had accumulated unsecured debt getting “out of this downward spiral”; consolidating debt into a single monthly payment; reducing the total amount; “easing the monthly burden” and being able to take “This Quick Quiz” to see whether they were eligible. There was no mention of risks or fees, both of which would apply to an IVA/DMP. We considered the overall impression was that there was a simple and straightforward way to deal with debt, with nothing to lose. We considered the ad needed to make consumers aware that there were risks associated with the form of debt support Flexible Digital Solutions would put them forward for before clicking on the links for further information and making an enquiry. Because the ad did not make it clear that it was promoting an IVA/DMP and that risks and fees applied, we concluded that it was misleading.
On that point ad (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
Action
The ads must not appear again in the forms complained of. We told Flexible Digital Solutions Ltd to ensure their ads did not mislead by not making clear that there were restrictions on suitability for an IVA/DMP; exaggerating the speed of the service; trivialising an application and therefore encouraging consumers to make an enquiry without giving it serious consideration by, for example, using a “quiz” format; exaggerating the “special” nature of the solution when in reality eligible enquirers would be put forward for an IVA/DMP; and by not stating that risks and fees were associated with them.
