Cellular8.07.2009

Vodacom versus Cell C on 99% discounts

Vodacom is in hot water with the Advertising Standards Authority of South Africa (ASA) after it failed to comply with a ruling regarding the use of “Up To” 99 Free minutes and “up to” 99% discounts in its advertising campaigns.

In a ruling in March this year the ASA ruled that Vodacom’s use of the phrase, “UP TO” 99 FREE and “up to” 99% discounts in its advertising was in contravention of the advertising Code.

Vodacom was instructed to withdraw the claims with immediate effect and not use the advertisement in the same format again in future.  Vodacom later appealed this ruling without success.

Cell C has now successfully lodged another complaint against this advertising campaign from Vodacom, saying that Vodacom continued to carry the disputed claims on its website despite the binding ASA ruling.

Cell C further requested the ASA to impose sanctions on Vodacom, arguing that “the industry in which it operates is fast paced and dynamic and it is therefore unlikely that an advertiser does not frequently review its online advertising material for accuracy and currency.”

Draft FCB, on behalf of Vodacom, told the ASA that it made a concerted effort to comply with the authority’s instructions, but given the wide variety of advertising elements that had to be withdrawn Vodacom ‘unfortunately and erroneously’ overlooked the claims on its website.

The ASA was not impressed.  “It took Vodacom three months to realise the oversight due to the fact that a complaint was lodged. Had it not been for the complaint, the website could have remained unchanged in non-compliance with the ruling,” the ASA said.

The ASA upheld the Cell C complaint, and both parties will now be given an opportunity to comment on whether sanctions should be imposed.

Vodacom versus Cell C – give your views

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