Daily deals sites incur watchdog’s wrath

Daily deals sites are back in the dock as the advertising standards watchdog steps up efforts to crackdown on misleading promotions by banning several Gumtree and KGB.com ads.

gumtree

KGB has had several ads banned for exaggerated claims over possible savings and using misleading product images and descriptions to accompany deals.

In its ruling, the Advertising Standards Authority, warned KGB that it must “ensure they held robust evidence to support savings claims when advertising offers”.

Separately, an ad for Gumtree has also been banned for exaggerating the savings that could be made by users taking up a daily deal.

A promotion offering “£7 for Eye Brightening Collyre Bleu Eye Drops” from JD Harris stating the vendors normal price was £24.99 was ruled inaccurate because the product generally sold for less than this price.

The ASA warned Gumtree must “ensure statements of value were an accurate representation of the price at which the product was generally sold and that they held evidence to substantiate future claims”.

The ad watchdog referred Groupon to the Office of Fair Trading earlier this year for persistent breaches of the advertising codes.

Groupon was given three months it instigate changes handed down by the OFT, a period that closes mid June.

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