Out-Law / Your Daily Need-To-Know

Out-Law News 1 min. read

Free competition prize cannot depend on entrants paying for it, says regulator


A competition prize cannot be described as 'free' if entrants have to agree to purchase it in the first place, regulator the Advertising Standards Authority (ASA) has said. Companies should not confuse competitions with prize draws either, it said.

The ASA said that an advert for Optical Express broke its rules on truthfulness and the running of free offers and trials when it claimed people could 'win free laser eye surgery'.

Internet banner adverts and emails from Optical Express in Cumbernauld advertised the free surgery, with links to its website where treatment could be booked.

For a chance of winning the free surgery an entrant had to book treatment with Optical Express, which they could only do by paying a booking fee. The winner was picked on the last day of each month.

If the winner was someone who had booked but not paid for treatment it was carried out for free and the booking fee refunded. If they had already had treatment the cost of the treatment and the booking fee were refunded.

Optical Express told the ASA that it did not believe it was charging for entry to the competition because the cost and the booking fee were the same for people who reserved treatment whether or not they entered the competition.

The ASA said that it was a problem that the adverts themselves made no mention of the fact that a booking had to be made in order for someone to win the competition.

"Neither the e-mails nor the banner ad made clear that participants must make a commitment in the form of booking eye surgery before being eligible to enter the promotion," it said in its ruling. "The entry requirements, which included booking surgery and incurring a booking fee, were significant conditions likely to affect consumers interest in the promotion and should have featured prominently in the ads."

The ASA also took issue with the mechanics of the competition itself.

"We … noted the offer was a prize draw in which the prize was awarded in accordance with the laws of chance, not a competition, which would require participants to exercise skill or judgement," it said.

The ASA said that the lack of clarity in the advert meant that it broke ASA rules on truthfulness and on the running of free offers and free trials.

"Because the ads did not make clear that the promotional prize was to win back the cost of eye surgery to which the participant had already committed, we considered that they were likely to mislead," it said.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.