New Decisions: Electricity Promotions, Supermarket Recipes and More

The following decisions were published on the ASA website on 3 November 2016:

• Complaint 16/093 Pharmacy Direct – Not Upheld in part/ Settled in part
• Complaint 16/345 Progressive Enterprises – Not Upheld
• Complaint 16/347 Genesis Energy – Not Upheld
• Complaint 16/361 AA Smartfuel – No Grounds to Proceed
• Complaint 16/366 BMW NZ – No Grounds to Proceed
• Complaint 16/369 Lotto NZ – No Grounds to Proceed
• Complaint 16/370 SJ Allen – No Grounds to Proceed
• Complaint 16/371 AA life Insurance – No Grounds to Proceed
• Complaint 16/373 Paramount Pictures – No Grounds to Proceed

Electricity Promotion Given The All Clear

Genesis Energy advertised a “Happy Winter” promotion on their website. The promotion offered people who switched to Genesis Energy up to $250 off their next power bill. It also offered fixed electricity prices, prompt payment discount and entry into the draw to win from a $50k prize pool.

The Complainant said that the advertisement was misleading because it gave the impression that new customers would receive a full $250 off their first power bill and not just a portion of that amount. The Complainant was also concerned that the discount was not automatic, but instead a chance to win a discount.

The Advertiser explained there were two benefits available to new customers; a discount of up to $250 off the first bill and an entry into the prize pool to win an additional amount.

The Complaints Board said the advertisement was clear and did not mislead the customer about the discount on offer and ruled it was not in breach of the Code of Ethics. Accordingly, the Complaints Board ruled the complaint was Not Upheld.

Countdown’s TV Ad Not Misleading

A television advertisement for Countdown showed the audience how to select the ingredients to make Cajun Chicken Tortillas from Countdown and how to cook the meal. The advertisement finishes with the tag line “feed four for $15” and displayed Countdown’s website for more information.

The Complainant stated that the advertisement was misleading and not socially responsible. In a letter to the advertiser they said:

“…your greatest ingredient seems to be lack of any sort of understanding of nutrition although the cook happily declares how it’s a perfectly nutritious balance… You also seem to misunderstand how fresh food works. Anyone in the business of food will tell you to buy seasonal produce for both freshness and affordability.”

The Complaints Board said the response from the Advertiser (Progressive Enterprises) addressed all the concerns that the Complainant had raised and provided sufficient evidence to support the claims in the advertisement such as the “feed four for $15”.

The Complaints Board agreed the advertisement was not likely to mislead consumers and had been prepared with a due sense of social responsibility to consumers and society. The Complaints Board ruled the advertisement was not in breach of the Code of Ethics or the Code for Advertising Food.  Accordingly, the Complaints Board ruled to Not Uphold the complaint.