How to complain about misleading financial ads Misleading ads
An advert is considered misleading if it contains a false statement of fact, creates a false impression, conceals or leaves out important facts, or promises something it has no intention of carrying out.
Who's responsible?
For non-credit ads, speak to the FSA
Advertising Standards Authority
The Advertising Standards Authority (ASA) has the power to investigate all kinds of advertising, and often deals with financial adverts.
In 2008 the Advertising Standards Authority (ASA) received the highest number of complaints (26,433) about a record number (15,556) of ads with a 27% increase in the number of formal upheld rulings. Misleading claims in ads accounted for over 45% (12,942) of the complaints.
Responding to the economic downturn, the ASA has placed a greater emphasis on issues that have the potential to seriously affect consumers such as financial advertisements and price comparisons.
As of March 2011, the ASA extended their remit to all online content. Previously they just covered online advertising in paid-for space. The new remit is defined as anything 'directly connected with the supply or transfer of goods or services', or in the case of charities, solicitations or funds. This means they can pick up malpractice on company's social network profiles such as Twitter and Facebook and on company websites.
Although, when it comes to financial ads, the ASA primarily deals with television and radio and issues of taste and decency, it is a good first stop if you have a complaint about an ad as it will pass on any it can't deal with to the relevant body.
Office of Fair Trading
The Office of Fair Trading (OFT) deals with complaints involving credit. However, it recommends you report them first to the Trading Standards Institute.
The OFT will often publicly name a company that produces a misleading ad. In March 2007, for instance, it demanded the One Stop Money Shop change its advertising to improve transparency, putting details of the case on its website.
The OFT also has powers of enforcement, including the ability to take traders to court.
Financial Services Authority
The FSA oversees the advertising for most financial products and services, and for financial advice about these products and services. If it finds that a firm has produced a misleading advertisement, it can take action – this can range from asking the company to change the ad to issuing a fine.
Over the past two years, the FSA has investigated more than 930 cases of potentially misleading advertising. In 60% of cases, adverts were swiftly amended or withdrawn. However, the FSA won't name any of the companies that issue misleading financial promotions, which it uncovers in its investigation into firms, or in response to a complaint.
In 2012, the FSA will be divided into three new bodies the Financial Conduct Authority (FCA) will operate as a consumer champion, alongside two other regulation bodies; the Prudential Regulatory Authority and the Financial Policy Committee.
Following pressure from Which? the government has announced that the new FCA will name the firms involved when it requires them to amend or withdraw a financial advert. This will provide an extra incentive for firms to get it right first time to avoid being named and shamed by the FCA.