This article is a follow up one to our previous article entitled We Are The Biggest, Best, And No1?

Everyday we are all bombarded with adverts on the TV, radio and the internet. All these adverts are governed by a code in the UK issued by the Advertising Standards Authority. This body makes sure that adverts comply with the code and if they don’t then the company either has to change it or the advert is banned.

So what impact does this have on internet based businesses and websites, most companies have them, but what do the rules mean for them. Are web sites affected? The answer is YES. You didn’t know that? Now you do. Your web site could be breaking the law.

The Advertising Standards Authority states “When a business advertises it’s products or services, it is important to make sure the advertising is not misleading.” Surely, you say, this only applies to advertising  and you would be wrong. I’ll expain things as we go along. An advertisement can be deceptive in various ways including where it:

• Contains a false statement of fact
• Conceals or leaves out important facts
• Includes or implies a promise, that will not be fulfilled
• Creates a false impression, even if everything stated may be literally true

Now I am sure anyone reading this is saying what has this got to do with my web site? The answer is that a web site is classed as advertising. Under the Control Of Misleading Advertisements Regulations 1988 the Office Of Fair Trading (OFT) can take action against companies in breach of the regulations. This includes what they put on a web site. The also have powers under The Enterprise Act 2002. There is an upside in that the OFT will not normally act unless all other avenues for remedy have been tried although these avenues are different from case to case, if no intermediate avenue exists they can act immediately.

So what does this mean for web sites and the owners. Well simply put it means any claims you make about yourselves, a product or service MUST be accurate and that you must be able to prove such.

Before taking action the OFT must be satisfied that there is an advertisement as defined in the regulations. Advertisement means any form of representation which is made in connection with a business, craft or profession in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. This includes representations (i.e. Statements) made orally, in printed material, web sites, e-mails, SMS text messages or pictures, and covers advertising in just about every type of commercial activity.

Any claim made on a web site must be able to be independantly verified and you must be able to supply the documentation of such on demand. What does this mean to a web site owner, well if you claim to be the biggest, the best etc you must be able to prove it if not you are breaking the law, and could end up in court.

Let us look at a simple example, a company claims to be the fastest growing in its field. If a company has one emplyee and takes on another it has grown by 100%, however if another compay that has one employee takes on two more it has grown 200%. This however is not a great indicator of a company being the fastest growing, even though it may be technically correct it is also misleading as the turnover may be minimal. A large company of five thousand employees taking on one more is not growing as fast in percentage terms, but if their turnover increases fromm £1o0,000 to £1,000,000 then the company has grown and such an increase could make it the fastest growing company in its sector of the market. However to claim such would need independant verification from an authorotive body.

When making a claim be aware that in doing so YOU have to be able to PROVE IT idependantly otherwise you risk running foul of the law. One complaint is all it takes.

I hope this gives you pause for thought and that if you do have any claims on your we site that cannot be independantly verified you consider removing them or getting the verification. It may save you a lot of headaches in the future.

©Paul Sims
CEE Worldwide Entertainment Agency