Background
This Ruling forms part of a wider piece of work on unregulated investments, identified for investigation following intelligence gathered by the ASA.
Ad description
Three radio ads for Gold Bank, a gold dealing company, heard on LBC during July 2024:
(a) The first ad said, “From Gold Bank London, the safe and sound way to buy gold. Part one security. It’s imperative your gold is of the highest grade and securely stored for the future. The gold refined by Gold Bank comes with fine scan technology ensuring our highest authenticity and traceability. It is kept safe to a world class grade five security standard. Gold Bank London kept safe, for your future and sound, with solid guidance. Visit goldbank.co.uk.”
(b) The second ad said, “From Gold Bank London, the safe and sound way to buy gold. Part two. Not all gold is the same. Every gold bar or coin is unique, so it takes a gold expert to help you have faith in what you're buying. At Gold Bank, we have the knowledge and know how to make your gold buying experience a rewarding one. Gold Bank London, kept safe, for your future and sound, with solid guidance. Visit goldbank.co.uk.”
(c) The third ad said, “If you're a gold buyer, you know you're safe with Gold Bank. At Gold Bank, safe is in our DNA. Feel safe in the knowledge that our unique fine scan technology ensures our highest authenticity in the gold we produce. Feel safe that your gold comes certified with a unique identifying serial number and feel safe that Gold Bank’s 30 years of experience means you can trust us in the recommendations we make. Visit goldbank.co.uk.”
Issue
The ASA challenged whether ads (a), (b) and (c) breached the Code because they implied that gold, which was an unregulated product, could have investment potential and this should not have been broadcast on a non-specialist radio station.
Response
Gold Warehouse Ltd t/a Gold Bank said they did not present gold as an investment in their advertising. They also did not provide investment advice, but they ensured that they provided advice on the cost, process and security of gold when consumers bought their products.
They said they targeted people who were interested in buying gold, precious metals or collectables for various reasons. For example, many Asian communities purchased gold for events such as Diwali and other special occasions. Other consumers bought special items as gifts and Gold Bank provided a link to the gift items section of their website.
Radiocentre said they understood that gold was not to be considered as a “collectors’ item or other unregulated product or service that could have investment potential (in the colloquial sense)” and that BCAP Code rule 14.5.4 did therefore not apply. They believed that as long as the word “investment” or suggestion of investment potential were avoided, and that the purchase of gold was not framed as an investment in any way, which was the case in the ads, it was acceptable.
Assessment
Upheld
The BCAP Code stated that certain categories of advertisements may be broadcast on specialised financial channels, stations or programming only, such as those for investments not regulated or permitted under the Financial Services and Markets Act 2000 (FSMA). An advertisement that implied, for example, that a collectors' item or other unregulated product or service could have investment potential (in the colloquial sense) would normally be unacceptable.
The ASA acknowledged Gold Bank’s comments that gold was purchased as a collectable keepsake, and not only for its investment potential. However, we considered that the focus of ads (a), (b) and (c) was on gold which was purchased as an investment. Ad (b) referred to gold bars, which we considered would usually be purchased for investment potential. The ads also included claims such as, “It’s imperative your gold is of the highest grade”, “it takes a gold expert to help you have faith in what you're buying”, “the gold refined by Gold Bank comes with fine scan technology”, and “our unique fine scan technology ensures our highest authenticity in the gold we produce”. We considered those statements, along with references to the expertise of the advertiser, emphasised the investment potential of the gold sold by Gold Bank, given its type and quality.
We also acknowledged Gold Bank’s comments that gold was purchased for cultural or special occasions. However, those reasons were not mentioned in any of the ads and there was otherwise no suggestion that the gold was being purchased to be given as a gift. Ads (a) and (b) featured the claims “securely stored for the future” and “kept safe, for your future”, and “make your gold buying experience a rewarding one”. We considered those claims further gave the impression that the purchase of gold was being presented as an investment opportunity which would provide financial returns in the future, in a similar way to money being invested in a traditional bank.
Further to this, all the ads directed consumers to the advertiser’s website. The carousel homepage featured a page headed “Members”. At the bottom of that page were three options for ascending membership tiers where consumers could open an account when making purchases. Text for the Bronze level stated, “Starter Account. Where the investment journey begins”; for Silver, “Your gateway to investment beginnings and beyond”; and for Platinum, “Elevate your investment journey to unparalleled heights”. Further text stated, “Gold Bank is an investment gold company established over 30 years with headquarters in West London”. When the “Become a Member” link was clicked, text at the top of the page stated “Why not join the millions of savvy investors by utilizing our fast track rewards program to financial freedom”. We understood from this that Gold Bank offered an investment service, as suggested in ads (a), (b) and (c).
We considered that the ads implied that gold, which was not regulated under FSMA, could have investment potential. The ads should therefore have been broadcast only on a specialised financial radio channel and because that was not the case, we concluded that the ads breached the Code.
Ads (a), (b) and (c) breached BCAP Code rules 14.5 and 14.5.4 (Financial products, services and investments).
Action
The ads must not be broadcast again in the form complained of on non-specialist stations. We told Gold Warehouse Ltd t/a Gold Bank to ensure that future ads which implied that gold, which was an unregulated product, could have investment potential were broadcast only on specialised financial stations.
