Ad description
A website for Official iPhone Unlock, www.officialiphoneunlock.co.uk, seen in January 2018:
a. The website, as viewed from desktop computers, included a “BUY NOW” page where customers could enter the model, network and IMEI number for their phone. When that information for an iPhone X locked to Vodafone was entered, text stated “£19.99 Available now - pre-order now for fast delivery in 24-72 hours” above a “Pre-Order” button. Text underneath stated “Please note there will be a final payment of around £60 upon completion of the unlock”.
b. The website, as viewed from iPhones, displayed the “BUY NOW” page as described in ad (a), however, the text under the “Pre-Order” button stating “Please note there will be a final payment of around £60 upon completion of the unlock” was visible only after scrolling down the page.
Issue
The ASA received two complaints:
1. Both complainants believed the text regarding the additional £60 fee in ads (a) and (b) did not accurately represent the cost of the final payment because they were told they must pay an additional £120.99 and £104.99 respectively, rather than £60, and challenged whether the price claim was misleading.
2. One complainant, who believed the text regarding the additional fee in ad (b) was not presented clearly because it was not visible on their iPhone without scrolling down, challenged whether the ad was misleading.
Response
1. & 2. Official iPhone Unlock Ltd said that the future additional costs for consumers were clearly displayed and written in bold in the ad, and that was viewed prior to the initial payment of £19.99. They said that the price for one of the complainant’s unlock would have been approximately £70 after the deposit, not £120.99 as stated, which was made clear on the website by the statement “Please note there will be a final payment of around £60 upon completion of the unlock”.
Assessment
1. Upheld
The ASA considered that consumers would understand the claim “£19.99 Available now - pre-order now”, when read in conjunction with “Please note there will be a final payment of around £60 upon completion of the unlock”, to mean that an initial payment of £19.99 would be required to unlock an iPhone, followed by a second payment of roughly £60.
We considered that the ads did not make clear the cost of the final payment, as the price claim of “around £60” was only an approximate estimate, and nor was an explanation of the manner in which the final cost was calculated stated. The two complainants were required to make a second payment of £120.99 and £104.99 respectively, both of which were significantly higher than the quoted price of £60 the complainants saw in the ad. We considered that the precise cost of the final payment or the manner in which it was calculated if it could not be calculated in advance was material information that was likely to affect consumer’s understanding of the offer, particularly as we understood the initial pre-order payment of £19.99 was non-refundable.
Because the ads did not make sufficiently clear the exact cost of the additional payment required or state how it was calculated, we concluded the ads were misleading.
On that point the ads breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
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.
and
3.4.3
3.4.3
the price of the advertised product, including taxes, or, if the nature of the product is such that the price cannot be calculated in advance, the manner in which the price is calculated
(Misleading advertising),
3.17
3.17
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product featured in the marketing communication.
and
3.19
3.19
If a tax, duty, fee or charge cannot be calculated in advance, for example, because it depends on the consumer's circumstances, the marketing communication must make clear that it is excluded from the advertised price and state how it is calculated.
(Prices).
2. Upheld
The text relating to the final payment in ad (b) was only visible when viewed on an iPhone after scrolling down the page. We therefore considered that many consumers were likely to follow the “Pre-Order” button and enter the ordering process without scrolling down the page, and therefore that they would understand that the full cost of the service was £19.99.
We considered that awareness of the second payment, which was a significantly higher cost than the initial deposit, was material information that would affect consumer’s understanding of the offer. Notwithstanding our concerns referenced above that the statement about the second payment did not accurately reflect the cost of the service, because that statement in ad (b) was likely to be overlooked and therefore was not presented clearly, we also concluded that ad (b) was misleading on that basis.
On that point ad (b) breached CAP Code (Edition 12) rules
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),
3.10
3.10
Qualifications must be presented clearly.
CAP has published a Help Note on Claims that Require Qualification.
(Qualifications) and
3.17
3.17
Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product featured in the marketing communication.
(Prices).
Action
The ads must not appear again in their current form. We told Official iPhone Unlock Ltd that they must clearly state the precise cost of the final payment required at the point consumers entered their mobile phone details, before making the initial deposit, and that the information about the additional payment must appear in a sufficiently prominent position to ensure it was not overlooked when viewed on a mobile device.
CAP Code (Edition 12)
3.1 3.10 3.17 3.19 3.3 3.4 3.4.3
