ASA Adjudication on Colossal Direct Ltd
Colossal Direct Ltd
9 Four Saints Street
Qormi
QRM 3660
Malta
Date:
22 February 2012
Media:
Internet (on own site)
Sector:
Health and beauty
Number of complaints:
1
Complaint Ref:
A11-181566
Ad
A promotion for a fat-burning product, seen on www.utroxz.com on 3 November 2011, stated "ORDER TODAY! ACT NOW TO CLAIM YOUR TRIAL BOTTLE HURRY LIMITED TO 1 TRIAL OFFER PER HOUSEHOLD".
Issue
The complainant challenged whether the ad was misleading because it did not make clear that, if you did not cancel the trial and return the unopened product within 14 days, you would be charged.
CAP Code (Edition 12)
Response
Colossal Direct Ltd (Colossal Direct) did not respond the ASA's enquiries.
Assessment
Upheld
The ASA was concerned by Colossal Direct's lack of response and apparent disregard for the Code, which was a breach of CAP Code (Edition 12) rule 1.7 (Unreasonable delay). We reminded them of their obligation to respond promptly to our enquiries and told them to do so in future.
We noted from the terms and conditions of the offer that if the unopened trial bottle was not returned within 14 days, participants were charged $89.95 and automatically enrolled in the LeanSlimUltra Weight Loss System Membership, whereby they would continue to receive one bottle and be charged $89.95 on a monthly basis until they cancelled it. We considered these were significant conditions that should have been made clear. We also considered that, while the promotion did not state "free", the text "claim your trial bottle" misleadingly implied that it was. We considered that the promotion was misleading, had not been conducted equitably, nor had it dealt with its participants honourably and concluded that it breached the Code.
The promotion breached CAP Code (Edition 12) rules 1.7 (Unreasonable delay), 3.1 and 3.3 (Misleading advertising), 3.23 (Free), 3.9 and 3.10 (Qualification), 8.2 (Sales promotions) and 8.17 (Significant conditions for promotions).
Action
The ad must not appear again in its current form. We told Colossal Direct not to misleadingly imply that products were free if they required payment and to make clear any significant limitations. We also told them not to run promotions unless they had taken steps to avoid causing unnecessary disappointment.
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