The UK’s advertising watchdog has banned ads from Nike and Sky on the grounds that they’re misleading in another sign that the agency has its eyes firmly peeled on the way retailers approach customers online.
The ads, the Advertising Standards Agency (ASA) suggested, were designed to lure consumers in and unintentionally spend money.
Commercial lawyer James Corlett said that “this is a warning to retailers across the board that these practices are in the ASA’s crosshairs.”
“Consumers can be overwhelmed with the way in which information is presented online and in some cases this is likely deliberate… consumers often feel manipulated or annoyed and in some cases these actions may cause financial harm,” he added.
In the case of Nike, the ASA banned an ad from a third party, The Sole Supplier. The third-party brand advertised the Nike shoe at a low price without disclosing that it was a child’s shoe.
Sky’s advert was banned because the company didn’t make it clear that a free trial for Now TV would automatically renew with a charge, ASA said.
A Sky spokesperson said: “At NOW, we are committed to providing our customers with a personalised viewing experience.
“While we believe that the choice ultimately rests with the consumer, we respect the ASA’s decision, and effective today, we have implemented the necessary changes to our sales journey.”
The ads were investigated over rising concerns about how retailers sell to customers online with regards to price transparency and product information.
ASA said that the Nike ruling “forms part of a wider piece of work on online choice architecture, identified for investigation following complaints received and intelligence gathered by the ASA.”
“The issue here was primarily a lack of transparency – basically, a failure to disclose important information upfront, making it hard for a consumer to make an informed decision,” Corlett said.
City AM has contacted Nike for comment.