ASA Slams Argos for Deceptive Advertising Practices

  • Argos criticized by ASA for misleading pricing of ‘free’ add-ons
  • ASA states that consumers were likely to see the extras as additional benefits
  • Retailer defends the advert, claiming clearance team decision

The Advertising Standards Agency (ASA) has taken issue with Argos after discovering that the company was increasing prices to cover the cost of supposedly ‘free’ add-ons. An advertisement for a Canon Powershot SX620 camera, priced at £179.99 and advertised as coming with a free 16GB SD card and case, was found to be misleading. Argos argued that the camera had initially been sold for £249.99 before being offered in a bundle at £199.99 and then reduced to £179.99 due to clearance pricing. The ASA stated that marketers cannot label an element as ‘free’ if it is included in the package price, unless consumers would view it as an additional benefit. Argos maintains that their clearance team made the decision to offer the bundle at a lower price. The ASA ruled the advertisement misleading and banned its reuse in its current form.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the ASA’s warning to Argos regarding misleading advertising practices. It presents both sides of the argument and includes relevant details about the case in question.
Noise Level: 3
Noise Justification: The article is focused on a specific instance of misleading advertising and provides relevant information about the ASA’s ruling and Argos’ defense. However, it lacks in-depth analysis or exploration of broader trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Argos
Financial Rating Justification: The article discusses pricing practices of Argos and its impact on the company’s reputation and potential financial consequences.
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. The issue discussed is related to a misleading advertisement by Argos for a camera bundle, which was ruled as misleading by the Advertising Standards Agency (ASA). However, it does not meet the criteria of an extreme event.

Reported publicly: www.retailsector.co.uk