New Help Note on price comparisons

The Committee of Advertising Practice (CAP) issued a new Help Note last week to assist advertisers interpret the provisions of the British Codes of Advertising and Sales Promotion (the Codes) relating to price comparisons.

The Help Note applies to marketing communications by retailers which include a price comparison with one or more competitors. As well as reminding advertisers of the various different sections of the Codes which may apply to price comparisons, the Help Note also provides some guidance on complying with these sections. For example :

• Do not claim your prices are lower than your competitors' prices for all products if this is only true for selected products. You may claim that your prices are generally lower if you explain the basis of the comparison (for example, a typical weekly shop) and if you can demonstrate that this is a fair and suitable basis. Do not exaggerate the length of time for which your prices have been lower.
• If you use a typical weekly shop, ensure that the selection of products is fair and representative: do not use a very small selection of products, or a selection containing an untypical number of highly priced products which will result in a large price difference.
• If you use a survey in your advertisement, state where and when it was carried out. Do not use a survey which has been contradicted by more recent surveys.
• You should only compare your prices with those of competitors in the same locality, unless you can show that your competitors' prices are the same everywhere (for example, due to a national pricing policy).
• Compare like with like. You should only compare products of the same or very similar quality: own-brand with own-brand, brand with brand, premium with premium. Compare like sizes and do not compare multipack or bulk prices with single product prices or smaller quantities.
• If prices used in comparisons are promotional prices, this should be clearly stated along with any geographical restrictions. Promotional prices should be compared with your competitors' promotional prices, or the advertisement should make clear that this is not the case
• Do not compare prices in different sales channels: online prices should be compared with online prices, not in-store prices.
• If your competitors are likely to change their prices quickly in response to your advertisements, you should not use media with long copy deadlines, long shelf lives or which does not allow amendments to future advertising. If possible, you should amend advertising if prices have become inaccurate or out of date.

A key point is that advertisers must hold documentary evidence to prove all claims, whether direct or implied, before submitting an advertisement for publication.

The Help Note is a helpful summary of points which have arisen out of a number of recent decisions of the Advertising Standards Authority (ASA). Although the Help Note does not bind the ASA in relation to its future decisions, compliance with the suggestions contained within it should ensure that complaints are less likely to be upheld by the ASA.

A copy of the Help Note is available on the CAP web site at www.cap.org.uk. For further information, please contact Susan Barty by e-mail at [email protected] or by telephone on 0207 367 2542 or Victoria Baker by e-mail at [email protected] or by telephone on 0207 367 3451.