Misleading Advertising and Online Shopping

Advertising goods and services online is actually a viable business in itself. Affiliate programmes, advertising keyword campaigns and pay per click advertising are all important strategies in driving web traffic - or potential consumers - to a website. For this reason, online sellers in particular may be tempted to stretch or slightly distort the truth regarding the pricing or description of their goods and services. However, you should be aware that online traders, just like their high street counterparts, are under a legal obligation to provide their consumers with non-misleading advertisements.

Regulatory Body

The Department for Business, Enterprise and Regulatory Reform (BERR) is the department responsible for reviewing and refining all laws and regulations concerning trade descriptions and misleading advertising. The basis of these laws is that the seller provides honest and legal information to the consumer. If these guidelines are not followed, then the Office of Fair Trading (OFT) can intervene and investigate.

If the seller is based in the UK, then they are under the scrutiny of the independent Advertising Standards Authority. This regulatory body has set out codes of practice and regulations in order to monitor advertisements, making sure that companies do not confuse consumers with ambiguous pricing, or make false or misleading descriptions of the goods or services on offer. This code is known as the British Code of Advertising, Sales Promotion and Direct Marketing and applies to all non-broadcasting media.

However, you should be aware that there are differences in the way that the regulatory system operates with shop window advertising and online advertising. Basically, the system does not apply to content that appears on the website belonging to the advertiser. The ASA also does not apply the code to editorial content, but you should be aware that website content from a British-based website is still subject to British law such as the Trade Descriptions Act. The ASA will, however, look into complaints made regarding paid advertising campaigns that are sited on a third party's website. Examples of these advertisements include commercial emails, pop-up advertisements and 'banner ads'.

On a very basic level, it is worth remembering that both high street and online consumers are protected if they are subject to misleading advertising. Currently, as the law stands in the UK, sellers are required to provide consumers with goods that are as described, fit for purpose, and of satisfactory quality. If the trade description and the advertisement do not match, then you may be entitled to a refund or compensation.

Pricing

It is actually a criminal offence for a seller to provide misleading information on the pricing of goods or services. All hidden costs must also be included in the final price, or made clear on the advertisement, with written confirmation provided to the consumer when purchasing an item.

What to do?

If you believe that you have been subject to misleading advertising online, your first port of call should be to check that the website is UK-based, and then contact the online retailer. If this does not resolve your complaint, then you can try contacting the UK government's online consumer advice centre, Consumer Direct. You can also make a complaint to the ASA, who may investigate or refer your complaint.

If you believe that a financial service provider is using misleading advertising, then you can use an online contact form to inform Financial Services Authority (FSA).