Takealot guilty of “fake” prices

The Advertising Standards Authority of South Africa (ASA) has found Takealot guilty of selling products at higher prices than what it advertises the goods for.

In a recent sponsored Facebook promotion, Takealot advertised DKNY perfume at R369 – a saving of 62% on the normal price.

When a consumer tried to purchase this product, however, they had to pay over R200 more than the advertised price.

A complaint was lodged with the ASA regarding this practice after Takealot told the client it was “not responsible for advertising appearing on third-party platforms”.

According to the complainant, Takealot told her “its terms and conditions exempt it from liability emanating from its own advertising”.

Takealot responds

Takealot responded to the complaint, stating it is not an ASA member and that the organization’s rulings are therefore not binding to it.

The online retailer did acknowledge that this was the third complaint of this type brought to the ASA.

It explained there “may be lags in bringing the pricing of third-party advertisers in line with price changes”.

“The product on special had sold out when the complainant claimed the deal, but the advertising had not been changed,” said Takealot.

ASA ruling

The ASA rejected Takealot’s argument that it was not responsible for advertisements from third-party advertisers.

“If Takealot uses third-party advertisers, then it must ensure that checks and balances are in place that such advertisers only display correct information,” said the ASA.

“The reality is that Takealot benefits from the traffic flow to its website and it must take responsibility for the actions of the third-party advertiser.”

The ASA subsequently rejected Takealot’s submission that its advertising is not misleading.

It said consumers are led to believe that advertised products at the discounted rates are available on Takealot, which they are not.

The complaint that Takealot’s advertisement promising a discounted price was misleading was upheld, and it advised the company not to repeat this advertising.

Now read: Takealot’s plan to grow its R2.3-billion annual revenue

Latest news

Partner Content

Show comments

Recommended

Share this article
Takealot guilty of “fake” prices