Online Retailer in Hot Water Over Deceptive Time-Limited Offers

  • Boohoo found to be breaking rules around sales promotions by the Advertising Standards Authority (ASA)
  • Time-limited offers were found to be false due to countdown clocks
  • Customer demand led to extension of some promotions
  • ASA will work with Boohoo to ensure compliance with rulings and precedents

The Advertising Standards Authority (ASA) has found that online clothing retailer Boohoo broke rules around sales promotions after an investigation prompted by BBC’s Watchdog Live. Between August and November 2018, Boohoo had 14 sales advertised with countdown clocks, implying time-limited offers that were not actually limited in time. The company stated it never intended to mislead customers and extended some promotions due to customer demand. ASA will work with Boohoo to ensure compliance with previous rulings on similar issues. Boohoo is focused on customer satisfaction and fashion at the best prices, but acknowledges the need for better processes in future promotions.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Boohoo’s violation of advertising rules by the ASA and includes statements from both the ASA and Boohoo’s spokesperson regarding the issue.
Noise Level: 3
Noise Justification: The article provides relevant information about Boohoo breaking advertising rules and the company’s response to the issue. However, it lacks in-depth analysis or exploration of long-term consequences or implications for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Boohoo’s stock price and investor sentiment
Financial Rating Justification: The article discusses a violation of advertising rules by the online retailer Boohoo, which could impact its reputation and potentially affect customer trust and sales. This may have implications for the company’s financial performance and investor confidence.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk