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Thread: Mr Price ordered to withdraw misleading ads

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    Silver Member Eugene's Avatar
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    Mr Price ordered to withdraw misleading ads

    The Advertising Standards Authority has ordered Mr Price Home to withdraw misleading advertising in its furniture pamphlets that depict the price payable and a higher price with the claim ‘Never pay R...’.

    The Mercury says the ASA ordered the Mr Price Group to immediately withdraw the advertisement after the retailer failed to give evidence to substantiate the claimed savings. The authority had received a complaint from consumer Sydney Kaye against Mr Price's pamphlet promoting its Ranch Range furniture. Kaye submitted that the advertisement was misleading because it implied that the customer would save the difference between the ‘Never pay’ price and the actual price. However, he said, this was not true because the merchandise had never been sold at the ‘Never pay’ price.

    Mr Price responded that the ‘Never pay’ price was the price a customer would pay for the same item at its competitors. The retailer also submitted that it had been using the pricing strategy for the past 15 years.

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    Site Caretaker Dave A's Avatar
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    So now if Mr. Price put's "Never pay Rxxx at Competitor Y" that would be OK?
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Eugene's Avatar
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    I think if they do that, they might run into trouble with the Competition Tribunal. On the other hand, could the offering of 2 prices be construed as a contravention of the NCA? Sure you quote 2 prices, the lower one payable if you buy it at Mr Price. Just a thought. On the other side it might be seen as a comparison between 2 retailer and the prices that they offer.

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    Site Caretaker Dave A's Avatar
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    That's kinda what drove my jibe. I seem to recall regulators being sensitive to comparitive advertising too. A pity. Some of the "comparison"adverts I've seen have been really funny.

    Here's an example of really clever comparison advertising from the motor industry.
    The trouble with opportunity is it normally comes dressed up as work.

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    just me duncan drennan's Avatar
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    In relation to the whole competition and comparison thing, I picked this up on Ideate. Have a look at the picture at the end of the post....is this allowed?
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    Site Caretaker Dave A's Avatar
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    Based on our commentary above, it would seem not. But given the stakes, who'd blame them to keep it going until they got a "cease and desist" order.
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Eugene's Avatar
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    I think that 1time is treading on very thin ice with that wording. I have checked the Competition Tribunal's website and could not pick up if a formal complaint was ever lodged. (http://www.comptrib.co.za)

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    just me duncan drennan's Avatar
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    Well, it is an interesting one. I'm not too sure about the exact limitations on advertising, but they are not comparing prices, just noting that kulula's price does not include all the costs.
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