Tweet
The ASA considered that customers were likely to interpret the claim "Cheaper than Payday Loans!" as a claim that they would generally be able to borrow money at a lower cost than with payday lenders. Although Peachy stated that at the time the ad was created they were one of the few lenders to provide multiple repayment options, they had not provided evidence to substantiate that customers taking out loans with them would pay less overall than with payday lenders. While we appreciated that the ability to pay back small amounts in several stages, rather than one lump sum, would help spread the cost for some customers, we had not seen evidence to demonstrate that this equated to actual savings in terms of fees paid or a difference in accrued interest. We therefore concluded that the ad was misleading.
On this point ad (a) breached CAP Code (Edition 12) rule 3.1 (Misleading Advertising), 3.7 (Substantiation) and 3.38 (Other Comparisons).
The ASA noted that the line "Small bites put a smile on your lips" and the imagery in ad (b) were presented in a light-hearted fashion that drew particular attention to the benefits of the advertiser's service. While we acknowledged that consumers were likely to appreciate that this approach had been used to tie in with the media chosen for the ad, and would read the message accordingly, we considered that it would be interpreted as a statement about the desirability of short-term loans in general and the advertiser's service in particular. Although the slogan and image presented a play on words, we considered that they encouraged a casual attitude to taking out a loan and therefore concluded that the ad was irresponsible.
On this point ad (b) breached CAP Code (Edition 12) rule 1.3 (Social Responsibility).
43-45 Portman Square London W1H 6HN
http://www.asa.org.uk/Rulings/Adjudi...x#.U9o75GNYO50
On this point ad (a) breached CAP Code (Edition 12) rule 3.1 (Misleading Advertising), 3.7 (Substantiation) and 3.38 (Other Comparisons).
The ASA noted that the line "Small bites put a smile on your lips" and the imagery in ad (b) were presented in a light-hearted fashion that drew particular attention to the benefits of the advertiser's service. While we acknowledged that consumers were likely to appreciate that this approach had been used to tie in with the media chosen for the ad, and would read the message accordingly, we considered that it would be interpreted as a statement about the desirability of short-term loans in general and the advertiser's service in particular. Although the slogan and image presented a play on words, we considered that they encouraged a casual attitude to taking out a loan and therefore concluded that the ad was irresponsible.
On this point ad (b) breached CAP Code (Edition 12) rule 1.3 (Social Responsibility).
43-45 Portman Square London W1H 6HN
http://www.asa.org.uk/Rulings/Adjudi...x#.U9o75GNYO50
Comment