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Two complaints against CWC upheld by ASA [10 June 1998]

The Advertising Standards Authority have upheld two complaints against the January 1998 letter sent to all ex-Videotron subscribers. The full text of the ruling:

COMPLAINT

Objections to a direct mailing, which was sent to Cable and Wireless customers. It claimed 'I'm writing to tell you about some changes to our pricing and to remind you about some money-saving packages which you may be interested in. Could you save even more? Although you'll see that, from February 7th 1998, your monthly line rental goes up to £7.98 - the good news is that it's still 10% cheaper than BT. Of course, this increase means you'll no longer receive a monthly discount for taking both TV and phone services - so this may be a good time to think about switching to our HeadStart, Jigsaw or VisionPlus packages. If you switch you can choose from one of our three telephone packages ...'. The complainants:

1. believed that the mailing was misleading, because it did not state that customers who originally subscribed to Videotron, a telecommunications company that the advertisers had recently acquired, would lose a major benefit of the old package (free evening and weekend calls between Videotron subscribers and Videotron Internet providers) if they switched to one of the advertised packages: and

2. challenged whether customers who had originally subscribed to Videotron would save money if they chose one of the new packages.

OUTCOME

1. Complaints upheld.

The advertisers said the intention of the mailing was to inform customers that their line rental was about to increase and that Cable and Wireless were offering alternative tariffs. They explained that those who received the mailing and telephoned for information were sent a brochure that fully explained each tariff. The advertisers argued that the mailing was designed to ensure customers could make an informed choice about whether the tariffs would be better for them.

The Authority considered that the mailing was misleading by omission, because it did not state that Videotron subscribers would lose their free calls to other Videotron customers. The Authority asked them to ensure that future, similar advertisements included that information.

2. Complaints upheld.

The advertisers pointed out that just under one quarter of Videotron subscribers had already switched to the advertised tariffs before the mailing was sent out. They explained that their research showed that most Videotron customers would benefit from changing tariffs. The advertisers did not, however, show the Authority that research and, in its absence, the Authority asked the advertisers to withdraw the mailing and revise it with the help of the Copy Advice team.

There is more on this very important ruling here.

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Text by Alastair Scott

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