The Advertising Standards Authority of South Africa has ruled that a Takealot Daily Deals price for a Samsung TV was misleading.
Takealot promoted a Samsung 55-inch 4K Premium Ultra HD Smart LED TV in a Daily Deals promotion for R15,999 – a discount of 40% on the “List Price” of R26,000.
A consumer lodged a complaint with the ASA, highlighting that the “normal price prior to this promotion was R18,225”.
This is actually a 12% discount and Takealot was using a large 40% discount to mislead the public into buying the TV, said the complainant.
Takealot responded, stating it is not a member of the ASA, but elected to respond to the complaint as it is “a customer-centric business and as confirmation of its commitment to fair and honest advertising”.
It explained the difference between the “list price” and its own “normal selling price”.
- The deal price – the price offered as the special discounted price available for a short time.
- The normal price – the price that Takealot normally sells the product for.
- The list price – the recommended selling price by the manufacturer of the product.
Takealot said the “list price” is clearly explained, and has previously been accepted by the ASA.
In this matter, the ASA queried the source of the “list price”, and in response received a repeat explanation of the difference between list price and normal price from Takealot.
“Takealot submitted that the price of R26,999 was the recommended retail price, but gave no evidence thereof,” said the ASA.
Unlike previous rulings, the ASA was unable to source independent evidence that the retail price of this TV is R26,999, or in that vicinity.
“The highest prices of similar televisions seem to be between R19,000 and R20,000, and the actual advertised model seems to no longer be available for retail from the supplier.”
The ASA said it accepts that the list price and the normal price may differ, and that in certain cases they may differ significantly.
However, it is not satisfied that the list price in this matter is reflective of the actual recommended selling price.
The ASA subsequently found that Takealot’s advertising was misleading, and should be withdrawn.