After a string of complaints about British Gas advertising this year, the company has been summoned to a meeting by the advertising watchdog. Industry rivals have called for all British Gas advertising to be pre-vetted after 28 breaches of the advertising code.
The latest ad campaign to receive complaints, created by Clemmow Hornby Inge and WWAV Rapp Collins, promoted British Gas Price Protection.
The TV ad showed a flame inside an ice cube showing a smaller flame that it had been frozen. The smaller flame says: "Oh yes, British Gas are the first to offer frozen prizes until 2010."
A voiceover then said: "Sign up to British Gas Price Protection and we'll guarantee no more price rises until 2010." Text underneath warned viewers that conditions applied and that there was restricted availability.
The press ad outlined the same offer. It said: "Funny how good news doesn't always make the headlines. When Mr Currie chose to take out Price Protection 2010 with British Gas, it wasn't a life-changing experience. It just made him feel a little bit more relaxed... because he knows that his energy prices won't go up for five long winters." Later, a footnote read: "Prices protected until April 2010. Based on our standard current prices for your area."
Complaints from the public and industry about the television ad raised a number of issues. Sixteen people said that the ad was misleading to promise "no more prices rises" because British Gas had recently announced a 14.2% price rise.
A further seven people, as well as rival RWE Npower, said that the ad had not explained that customers would have to pay a premium.
The Advertising Standards Authority raised another issue, challenging whether the claim to "guarantee no more prices rises" could be kept in the event of changes to regulatory charges being introduced.
RWE Npower further complained that the press ad's claim that the prices protected were the "standard current prices" was untrue -- in fact, "Mr Currie" would be paying, including the payment, would be 17% more than his then current standard rate.
It was on this count that British Gas was found in breach of the advertising code regarding truthfulness. British Gas told the ASA that it had taken copy advice to ensure that customers fully understood the nature of the product, but that the ad had been run in error before September 19 -- which is when the new prices had been brought into effect.
The ad watchdog acknowledged that the wording had been included because of a mistake, but said that nonetheless it had given a misleading impression and was therefore in breach.
On the count of the misleading television ad, the ASA also found British Gas in breach on the basis of misleading advertising, for not clearly explaining that the "no more price rises" claim had excluded the most recent rise; and for failing to mention a premium rate or any kind of charge for the protection plan.
It was also found guilty of breaking the rule on guarantees for not clarifying that the plan could not protect against regulatory fuel increases.
A further complaint from two viewers saying that they had pre-paid gas and that the offer was not available to them was rejected.
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