ASA Cracks Down on Amazon’s Deceptive Savings Claims
- Amazon faces backlash over misleading ads
- Four adverts banned by Advertising Standards Authority (ASA)
- RRPs were not the usual selling price for products
- Savings claims found to be unsubstantiated
The Advertising Standards Authority (ASA) has banned four Amazon ads for being misleading. The ads, which promoted laptop gaming monitors, TVs, and electric toothbrushes with savings of over £300 on their recommended retail price (RRP), were accused of inaccurately representing the actual savings. Amazon admitted that the prices included in these ads were a mistake and promised to work on a solution to avoid such issues in the future. The ASA stated that customers understand RRP to be the usual selling price, but Amazon could not provide adequate evidence to support its claims. As a result, the company was told to ensure future references to RRPs reflect the actual selling prices of products and substantiate their savings claims.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the ASA’s ruling against Amazon’s misleading advertisements and includes quotes from both Amazon and the ASA. It explains the issue with the RRP pricing and the steps Amazon will take to avoid similar issues in the future.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s misleading advertising practices and the actions taken by the Advertising Standards Authority. It also includes a statement from Amazon regarding future improvements. However, it lacks in-depth analysis or exploration of the consequences for consumers and businesses.
Financial Relevance: Yes
Financial Markets Impacted: Amazon’s reputation in financial markets
Financial Rating Justification: The article discusses Amazon’s misleading advertising practices, which can impact consumer trust and potentially affect their sales and financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the issue with Amazon’s advertisements is considered a minor issue regarding misleading customers.
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