Ad description
Five ads for Now TV from Sky:
a. The TV ad showed a woman taking images from a TV screen in the shape of a ticket. The voice-over stated, "How awesome is this? Watch the latest movies at any time with no contract on Now TV." Text at the bottom of the screen, shown during the first half of the ad, stated "Sky Movies Month Pass renews at £9.99pm after free trial unless cancelled". Large on-screen text towards the end of the ad stated "NO CONTRACT" and the claim was repeated in the voice-over.
b. The TV ad showed a woman taking images from a TV screen in the shape of a ticket. The voice-over stated, "How awesome is this? Watch the latest TV shows at any time with no contract on Now TV ... and the best bit? The Now TV Entertainment Month pass lets you dip in and out whenever you like ... all without a contract." Text at the bottom of the screen at the beginning of the ad stated "Pass renews until cancelled". Large on-screen text towards the end of the ad stated "NO CONTRACT" and the claim was repeated in the voice-over.
c. The video-on-demand (VOD) ad showed a woman holding a piece of paper with the words "12-Month TV Contract" visible which she screwed up and tossed into the air, turning it into confetti. She stated, "See this? No you don't, because Now TV don't do contracts. So you can watch gems like these. Now you see it." Text at the bottom of the screen appeared which stated "Entertainment Month Pass (£6.99pm) renews until cancelled ..." and remained until the end of the ad.
d. The online pop-up stated "BIG ENTERTAINMENT. NO CONTRACT" and featured small print which included "Entertainment Month Pass automatically renews at £6.99 pm until cancelled. Stop renewal at any time".
e. The website www.nowtv.com included large text at the top of the home page which stated "The latest movies, must-see TV shows, exclusive live sports. Instant epic entertainment. No contract". Further text underneath included "No contract No-strings TV. At last". A section about the movies pass included text which stated "Enjoy unlimited movies with a 30 day free trial. Then it's just £9.99 a month". A section about the Entertainment pass included text which stated "Just £6.99 a month". Small print, in a collapsible section at the bottom of the page, headed "The Legal Bit" stated "Sky Movies Pass: Fees apply after Free Trial. Sky Movies Pass automatically renews at £9.99 a month unless cancelled and you can stop renewal at any time ... Entertainment Month Pass: £6.99 a month unless cancelled and you can stop renewal at any time".
Issue
Six complainants, who understood that customers who purchased Now TV Movies or Entertainment passes were signing up to a rolling monthly contract which renewed unless cancelled, challenged whether the claim "no contract" was misleading.
Response
Sky UK Ltd t/a Now TV (Sky) said that the claim "no contract" had featured in their marketing since the launch of NOW TV in 2012. They said they aimed to communicate that the product was flexible and consumers could take it for a short time or "dip out" at any time, as opposed to being committed to a long-term contract. They said that rolling monthly contracts were commonplace for streaming services and that the average consumer was therefore likely to be aware of such services. They believed it was clear from the ads that they were for pay TV content, and that the various qualifications included in each ad made clear that the movies and entertainment passes renewed unless cancelled.
In relation to the TV ads (a) and (b) Clearcast said that consumers would understand, in the context of the ads, that the claim "no contract" was synonymous with "no long-term contract" because it offered consumers the opportunity to pay for content on a month-by-month basis rather than committing for a year or more. They felt that impression was bolstered by the on-screen text which stated "Month passes renew until cancelled" which communicated that consumers were entering into a rolling subscription that could be cancelled at any point. They therefore considered that ads made the nature of the product clear and consumers were not likely to be misled by the "no contract" claim.
Assessment
Not upheld
The ASA acknowledged that purchasing the monthly NOW TV passes technically constituted a legal contract. However, we considered that the average consumer would understand, in the context of the ads, that the claim meant that there was no long-term commitment or minimum term associated with the products beyond the period already paid for (or subject to a free trial) and that there were no cancellation charges. We understood that the entertainment and movies passes renewed automatically each month but that there was no minimum term and they could be cancelled at any time with no notice period or cancellation fee. We considered that it was material information that the passes renewed unless cancelled and that this therefore needed to be included in the ads. The TV ads (a) and (b) both stated in text at the bottom of screen that the passes would renew unless cancelled and that this was similarly stated in the VOD ad (c). The online pop-up ad (d) included the same qualification in the smallprint. The website ad (e) included the qualification in the expandable "Legal Bit" at the bottom of the page and we also noted that both of the sections of the page which specifically referred to the movies and entertainment passes included text which stated "just £9.99 a month" and "Just £6.99 a month" respectively, which we considered indicated to consumers that there was an ongoing monthly payment for the passes. We considered that the ads made clear that the monthly passes would renew unless cancelled and concluded that, in this context, the claim "no contract" was unlikely to mislead consumers.
We investigated ads (a) and (b) under BCAP Code rules
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
and
3.2
3.2
Advertisements must not mislead consumers 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 consumers need in context to make informed decisions about whether or how to buy a product or service. Whether the omission or presentation of material information is likely to mislead consumers depends on the context, the medium and, if the medium of the advertisement is constrained by time or space, the measures that the advertiser takes to make that information available to consumers by other means.
(Misleading advertising) and
3.10
3.10
Advertisements must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
and
3.1
3.1
Advertisements must not materially mislead or be likely to do so.
(Qualification) but did not find them in breach.
We investigated ads (c), (d) and (e) under CAP Code (Edition 12) rules
3.1
3.1
Advertisements 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) and
3.9
3.9
Marketing communications must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
and
3.10
3.10
Advertisements must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.
(Qualification) but did not find them in breach.
Action
No further action necessary.
