Recent Advertising Standards Authority decisions
Two recent decisions of the Advertising Standards Authority (ASA) on car adverts provide guidance on comparisons with the RRP (recommended retail price).
The car purchasing platform, Carwow, offered a Ford car with an apparent saving of £3600 off the RRP. The ASA received a complaint that the same car was offered on Ford’s own website with a lower RRP.
Even though there was some confusion as to which model of the car the RRP published by Ford related to, the ASA found that the RRP claimed by Carwow was misleading. This was because the RRP was not the price at which the vehicle was generally sold.
In the second case, a Toyota dealer, Motorline, advertised a “price fall” event at its Bromsgrove branch between certain dates. It featured a Toyota car with a quoted MRRP and a saving of £5904. When a potential customer enquired about the car the following day, he was told that the car was not available at that price at the Bromsgrove branch.
The ASA concluded that, in view of this, the advert was misleading and breached the ASA code.
Take care when discounting against RRP
The take away points are that, whenever you are offering discounts to RRP, make sure that the RRP is accurate (and remains accurate throughout your promotion) and that you have the appropriate stock matching the offer made.
Contact Peter James for more information.