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Bord Gáis Energy Ad Misleading

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  • 17-05-2009 8:15pm
    #1
    Registered Users Posts: 19,340 CMod ✭✭✭✭


    In their new ad, lucy says "Guaranteed 10-14% off your electricity costs" Which is not the case, because they don't reduce the standing charges, they only reduce the rate of the price of the Kwh unit. It does appear in text on screen that its 10-14% of the rates, but why doesn't she say that?

    Anyone else think its misleading?




    What is 'Misleading Advertising'?

    Misleading advertising means advertising that deceives or is likely to deceive anyone that sees it. Misleading advertising may affect consumers’ choices regarding what they buy.


Comments

  • Registered Users Posts: 32,381 ✭✭✭✭rubadub


    Davy wrote: »
    Anyone else think its misleading?
    Yes, I hate this crap. I love catching scumbag salespeople out when I spot crap like this. I love asking these scumbags "so whats the catch?", (knowing full well what the catch is) only for them to say "no catch!", and then force the bastards to reveal that there actually is a catch. Just keep questioning them until they have to admit it is not all it seems, and then question them if other people presumed it was the case and why do they not superficially make things clearer as it is bound to cause confusion.

    Also if I am not sure if there is a catch I will ask specific questions which can result in them having to reveal the scam. e.g. if these bastards call to my house I will ask "so in all I pay the ESB €500 per year, and you are guaranteeing 10% off that?"
    It does appear in text on screen that its 10-14% of the rates
    Even that does not specifically clear things up in my mind, the standing charge could still be included in that. IMO it is deliberately left out, when they should be really CLEARLY warning people that it will be the same. There is no excuse not to have something like "standing charges remain the same" in the ad, no excuse whatsoever.


  • Registered Users Posts: 7,680 ✭✭✭Trampas


    but it is on the screen during the ad.


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    The advert clearly states 10-14% off ESB rates at the bottom of the screen and then continues to state Terms & Conditions apply, there is nothing misleading about this advert.

    ESB refers to ESB Customer Supply, no end user can obtain their electricity from ESB Networks Directly as they must go through ESB Customer Supply, Bord Gais or Airtricity.

    ESB Networks set the standing charge which applys to BG, Airtricity or ESB Customer Supply so this advert is not misleading as the standing charge does not change dispite the provider you choose.

    Complain to the ASAI if you really care (I doubt you care that much as its easier just rant here ;) ) but I honestly can't see the ASAI caring, in fairness its your job as a consumer to read T&C's for ANY product and or service (if T&C's apply) before you sign up.


  • Registered Users Posts: 19,340 CMod ✭✭✭✭Davy


    Cabaal wrote: »
    The advert clearly states 10-14% off ESB rates at the bottom of the screen and then continues to state Terms & Conditions apply, there is nothing misleading about this advert.

    ESB refers to ESB Customer Supply, no end user can obtain their electricity from ESB Networks Directly as they must go through ESB Customer Supply, Bord Gais or Airtricity.

    ESB Networks set the standing charge which applys to BG, Airtricity or ESB Customer Supply so this advert is not misleading as the standing charge does not change dispite the provider you choose.

    Complain to the ASAI if you really care (I doubt you care that much as its easier just rant here ;) ) but I honestly can't see the ASAI caring, in fairness its your job as a consumer to read T&C's for ANY product and or service (if T&C's apply) before you sign up.


    But the majority of people to not know what esb networks and customer supply are, or that what they each do. Its just ESB. Why cant she 'rates' rather than costs. Like what rubadub said, if you spend €500 a year to CS in bills, you wont get €50 discount if you avail of the 10% discount.


    The quote i gave, whats misleading advertising. "deceives or is likely to deceive anyone that sees it. Misleading advertising may affect consumers’ choices regarding what they buy". This ad may lead to someone switching thinking they will be getting 10% off their bill, but thats not true. And i dont mean to be having a rant :P


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    Davy wrote: »
    But the majority of people to not know what esb networks and customer supply are, or that what they each do. Its just ESB. Why cant she 'rates' rather than costs.

    She doesn't have to because it says rates at the bottom of the screen, this covers them fully

    Also its unfair to think that somehow BG should have to explain the difference between ESB Customer Supply & ESB Networks, it would make the advert extremely long and would cvonfuse the feck out of the majority of people
    Like what rubadub said, if you spend €500 a year to CS in bills, you wont get €50 discount if you avail of the 10% discount.

    Thats rubadub incorrect assumption, its not BG's fault if somebody assumes something incorrectly.
    The quote i gave, whats misleading advertising. "deceives or is likely to deceive anyone that sees it. Misleading advertising may affect consumers’ choices regarding what they buy". This ad may lead to someone switching thinking they will be getting 10% off their bill, but thats not true. And i dont mean to be having a rant :P

    I can honestly say that anyone who signs up to any product and/or service without reading the T&C's before hand is extremely foolish.


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  • Registered Users Posts: 32,381 ✭✭✭✭rubadub


    Cabaal wrote: »
    The advert clearly states 10-14% off ESB rates at the bottom of the screen
    And does not clearly state that standing charges are not included in these rates, which many would presume.
    Cabaal wrote: »
    She doesn't have to because it says rates at the bottom of the screen, this covers them fully
    That says it all, they have to "cover" themselves. That is indeed what they are doing, obviously they put this in pre-empting complaints about the fact that they do not mention standing charges. That is my problem with marketing tactics like this, they specifically neglect to mention "the catch". I have no doubt they know full well that many people will not remember standing charges, and make no real attempt to point it out.
    Thats rubadub incorrect assumption, its not BG's fault if somebody assumes something incorrectly
    Legally not their fault, but they know full well many will make this assumption. Morally the onus is on them to clarify this, they chose not to since legally there is no onus on them.
    it would make the advert extremely long and would cvonfuse the feck out of the majority of people
    As I said, they could have put a simple line in "standing charges remain the same". They could also have "typical savings" shown but that would reveal that they are not saving 10% on your electricity bill.


  • Registered Users Posts: 19,340 CMod ✭✭✭✭Davy


    rubadub wrote: »
    That says it all, they have to "cover" themselves.

    If they were more upfront about it people would still switch. Im sure people will get annoyed when the bill is not down as much as they thought it would be. The Esb CS 10% drop will help this though.
    Cabaal wrote: »
    She doesn't have to because it says rates at the bottom of the screen, this covers them fully

    If she said rates rather than costs, they wouldn't have to put the text on screen. Even without mentioning standing charges etc just the word costs applies a different thing to me than the unit rate.

    Cabaal wrote: »
    Thats rubadub incorrect assumption, its not BG's fault if somebody assumes something incorrectly.

    They should be as clear as possible, so no one would need to assume in my opinion.

    Cabaal wrote: »
    I can honestly say that anyone who signs up to any product and/or service without reading the T&C's before hand is extremely foolish.

    I agree, everyone should read and understand what they are signing up to. Bord Gáis is a big and respected company. I understand they are trying to get as many to switch as they can but i bet their is a huge amount of people thinking its 10 or 14% off their total bill and not the price of a unit of electricity. I understand the ad is all above board but I would always look at it on how it can be improved from a consumer Joe blogs point of view, i think this ad could be. Rant over :p


  • Registered Users Posts: 6,465 ✭✭✭MOH


    Davy wrote: »
    . I understand they are trying to get as many to switch as they can but i bet their is a huge amount of people thinking its 10 or 14% off their total bill and not the price of a unit of electricity. I understand the ad is all above board but I would always look at it on how it can be improved from a consumer Joe blogs point of view, i think this ad could be. Rant over :p

    I don't get it? It's an ad. That's what ads do - they try to portray the product/service in as positive a light as possible without (usually) actually lying.


  • Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    I never, not for one second, assumed the discount applied to the supply charge, just the electricity itself. I think most people are bright enough to figure that one out.............................


  • Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    OP: What utter claptrap! It has been widely known that the discount is on the Unit Tariff.
    So what if over all it's not quite 10% or 14%?

    Even on an Urban bill of only €250 per two months the saving will be 9.5% to 13.2%. Big deal if it's out by €7.50 to €12.00 per annum!! Having saved up to €197.10.

    On a €400 bill the savings would be 9.6% to 13.5%! (Close enough!!)


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  • Registered Users Posts: 12,515 ✭✭✭✭TheDriver


    presumed it was the same as the phone, line rental is same everywhere, just the usage is cheaper. At end of the day, its still cheaper than ESB


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    rubadub wrote: »
    And does not clearly state that standing charges are not included in these rates, which many would presume.

    Again as I already stated ESB Networks set the charge, its effectively no different to Eircom line rental which does not change when you go through a reseller like UTV or BT

    If a customer is dumb enough to assume and agree to a service without first reading and understanding the T&C's then this is their fault 100%

    Legally not their fault, but they know full well many will make this assumption. Morally the onus is on them to clarify this, they chose not to since legally there is no onus on them.

    Morals are subjective and don't come into this, we can clearly see that from the very fact that I view BG as doing nothing wrong where as you believe they are, legally they are doing nothing wrong.

    Again if it concerns you so greatly lodge a complaint with the ASAI :D


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    MOH wrote: »
    I don't get it? It's an ad. That's what ads do - they try to portray the product/service in as positive a light as possible without (usually) actually lying.

    and the fact they are not lying means there is nothing wrong :)


  • Registered Users Posts: 19,340 CMod ✭✭✭✭Davy


    Cabaal wrote: »
    and the fact they are not lying means there is nothing wrong :)

    Apparently the ASAI doesn't agree:

    http://www.irishexaminer.com/ireland/big-switch-advert-in-hot-water-94993.html
    ‘Big Switch’ advert in hot water

    By Catherine Shanahan

    Friday, June 26, 2009

    NOT quite the Big Swiz, nonetheless the Big Switch, Bord Gáis Energy’s customer recruitment campaign, has been rapped by the advertising watchdog for failing to clarify that its discounted price was for one year only.

    It has also been criticised for telling customers there was "10%-14% off electricity costs" when in fact the discount applies to the unit cost of electricity and not the overall bill, which includes standing charges.

    Yesterday the Advertising Standards Authority of Ireland (ASAI) upheld three complaints against Bord Gáis Energy’s Big Switch TV campaign, fronted by TV presenter Lucy Kennedy.

    Bord Gáis Energy argued they did not consider it necessary to include all the relevant terms and conditions applicable to the 10% discount in the advert because they were lengthy and could not be easily communicated in a TV advert.

    They highlighted the fact that customers could not "make the switch" based on the advertisement alone, and that during each application process customers are alerted to the terms and conditions which apply to the offer.

    However the ASAI ruled the advertisement should have indicated that the offer was an introductory one. It said the reference to "your electricity costs" could imply that the reduction was being applied to all components in the bill.

    The ASAI recommended the advertisements be discontinued or amended.


  • Closed Accounts Posts: 16 annoyed001


    rubadub wrote: »
    Yes, I hate this crap. I love catching scumbag salespeople out when I spot crap like this. I love asking these scumbags "so whats the catch?", (knowing full well what the catch is) only for them to say "no catch!", and then force the bastards to reveal that there actually is a catch. Just keep questioning them until they have to admit it is not all it seems, and then question them if other people presumed it was the case and why do they not superficially make things clearer as it is bound to cause confusion.

    Also if I am not sure if there is a catch I will ask specific questions which can result in them having to reveal the scam. e.g. if these bastards call to my house I will ask "so in all I pay the ESB €500 per year, and you are guaranteeing 10% off that?"


    Even that does not specifically clear things up in my mind, the standing charge could still be included in that. IMO it is deliberately left out, when they should be really CLEARLY warning people that it will be the same. There is no excuse not to have something like "standing charges remain the same" in the ad, no excuse whatsoever.

    scam, scumbag and bastards are slightly over the top words. especially when its obvious the 10 % off electricity means just that. A guy called to my gran and explained that before she even had to ask. take a chill pill and look at some of real advertising scams going on. A friend of mine works for BG and he says if they were ever found to be misleading any one they would be fired like a shot. I signed up and all I care is that I can see the bill is smaller


  • Closed Accounts Posts: 16 annoyed001


    check out airtricity if you want to see misleading.
    1.Not vat inclusive quotes
    2.Some deals involve reading your own meter even though your standing charge is supposed to cover the ESB to do that,
    3. they lead people to believe that by signing with them they will recieve 100% green electricity when all they have is about 20% green electricity feeding into the grid.(bout the same as BG.)
    4. very little standards with regard to door to door calls.
    5. very high cancellation rate
    I have friends with both companies so I get a fair bit of info. My friend with airtricity told me to go with BG.


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