KGB Deals overhauls compliance to avoid sanction

KGB Deals has overhauled its compliance procedure in a bid to ward off the threat of a damaging referral to the Office of Fair Trading (OFT) following almost 100 complaints about the company’s advertising in the past six months.


The daily deals service has increased the size of its digital publishing team to strengthen the validation process that takes place before its offers are published. It has also appointed British Gas senior legal counsel Rupesh Chandrani as its legal director.

All offers placed on the website will include new reference pricing checks, with proof points such as screen grabs of websites, to ensure consumers know the the exact time frame in which a deal has been discounted. Where the company cannot identify a discount it now simply states a price with no previous reference point.

Deal adverts will also be checked by more people to make sure they are in line with advertising regulation and that no mistakes are made.

William Ostrom, KGB Deals’ communications director, says it is hoped the new measures will result in a “dramatic” fall in the number of complaints brought about the company to the ASA.

The ASA has received 90 complaints about KGB Deals’ advertising in the year to date. Of those complaints, the ASA has published 20 formally upheld rulings and 12 informally resolved cases.

The Committee of Advertising Practice (CAP) has also been working with KBG Deals to improve its processes so future promotions do not mislead customers.

Matt Wilson, a spokesman for the ASA, which rules on the CAP codes, says it hopes to see a reduction in the number of complaints but would “consider other sanctions” if not.

The ASA referred KGB’s daily deals rival Groupon to the OFT in December last year, following “repeated breaches” of the advertising code.

Groupon pledged to change its marketing practices following the OFT’s probe and has since seen the level of complaints made to the ad watchdog about the company decline.

KGB Deals says it has also had informal discussions with the OFT to ensure its marketing conforms to the advertising code.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here