GC Logic, from London, had bought a business database from another company, based in India, in order to send out mail shots to targeted businesses. The mailing sent by the company included an invoice for £49, and thanked recipients for registering their business details with GC Logic's directory service.
The letter then explained that the service's 30-day free trial period was over and that to be included in the directory in future, the recipient would have to pay £49.
One company complained to the Advertising Standards Authority, explaining that it had not subscribed to a free trial for the directory.
GC Logic admitted that none of the recipients had subscribed to a free trial and that it had received many complaints over the mailing. According to the ruling the company agreed that it had taken the wrong approach to the mail shot and confirmed that it would not use that database again.
The ASA found GC Logic in breach of requirements that claims made in advertising must be capable of substantiation, must be honest and must not mislead. It was concerned, said the watchdog, "that the mailing postured as an invoice and concluded that the mailing misleadingly implied the recipients owed money."
GC Logic has been warned not to take the same advertising approach again.