Keep your “free” claims problem-free


INSIGHT
Published
Oct 22nd '20
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Advertising Codes state that marketers must not use the term “free”, or similar, to describe a product if consumers have to pay anything other than the unavoidable cost of responding and collecting or paying for delivery of the item.  While this may seem simple, it is deceptively so, and the ASA has a long history of rulings on complaints about advertisers using the term where products described as being “free” in marketing communications, most certainly were not.

 

While the Advertising Standards Authority (ASA) acknowledges that most consumers will understand marketers are unlikely to give away products or services without any conditions, obligations, or other strings attached on the part of the consumer, ads must make the extent of any commitment clear.  To start things off on the right foot, learn about the key types of “free” claims regularly used in ads, below.

 

Pure “free” claims

Pure “free” claims refer to those instances where consumers will receive something without parting with any money or other form of consideration, except for the “unavoidable” and “true” cost of responding, collecting, or delivering the item.

 

While it may be ok to charge the consumer for the minimum unavoidable cost of postage, marketers should not artificially inflate delivery costs, or include any packaging costs or handling fees in this postage cost, as doing so would make the “free” claim inaccurate, and misleading.

 

Conditional purchase promotions

Marketers are allowed to use the term “free” in situations where receiving a free product or service is contingent on consumers purchasing another item – provided the quality of the paid-for item has not been reduced, and the paid-for item’s price has not been increased to cover the cost of supplying the free item.

 

The ASA has upheld complaints about multiple ads which described gifts offered with a subscription as “free because, on those occasions, the price had been increased to cover the cost of the gift, and the same subscription was also on sale without the gift for a lower price.  For more on this, click here.

 

Package Offers

In a similar vein, marketers should not describe an element of a package as “free” if that element was included in the package price, unless consumers were likely to regard it as an additional benefit because it had recently been added to the package without increasing its price.

 

The ASA has ruled against an ad which described an SD card that was sold with a camera as “free” because the same camera was available for a lower price on its own, and this was part of the package price.  Describing delivery as “free”, where the cost of delivery is included in a fixed subscription price, is also likely to be problematic.  It should be noted that once consumers would consider the inclusion of that element to be ‘the norm’, it should no longer be described as “free” and becomes an indistinguishable part of the package.  Genuinely free items may be included in packages, but can only be described as “free” for a limited period of time before they will be considered inclusive, and so part of the package price.

 

For more on this topic, invest some time in considering CAP guidance on “free” claims, and the condensed guide in this AdviceOnline article on the “Use of Free.

 

Source: Committee of Advertising Practice (CAP).

 

How can we help!

At LS Consultancy, we provide a cost-effective and timely pre-publication advice to make sure all your advertising and campaigns are compliant, clear and suitable for their purpose.

 

We are experts in Marketing and Compliance, and work with a range of firms to assist with improving their documents, processes and systems to mitigate any risk.

 

Contact us today for a chat or send us an email to find out how we can support you in meeting your current and future challenges with confidence.

 

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