It is not the first time the AuctionWorld service has been rapped by the watchdog. In 2004, the AuctionWorld company was fined £450,000 and had its licence for the AuctionWorld channel revoked by Ofcom for being in breach of the Advertising Standards Code.
In November, Auctionworld was fined £450,000 by Ofcom shortly before going into administration with debts of £14m.
Chase-it.tv, which launched in May 2004 and is not currently broadcasting, offers viewers the chance to bid for products such as jewellery, digital cameras, electrical goods and homeware. Each item is advertised with a guide price and when the auction begins a series of prices appears onscreen. The presenter encourages viewers to phone the number shown to register and to press the hash key when they see the price they want to pay.
Viewers complained about the delivery of goods, being placed on hold for lengthy periods, not being able to get through on the number and not having their messages returned. They also complained that they did not receive replies to their emails, post nor faxes.
The ASA said it contacted Chase-it.tv with details of the complaints it received up until AuctionWorld went into administration, but did not receive a "satisfactory or conclusive response" to most of them.
ASA concluded that its advertising failed to meet the demand of its customers or deliver adequate arrangements to handle enquries.
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