A short while ago, we reported that Ford Motor Company of Southern Africa was directed by the Advertising Standards Authority of South Africa (ASA) to amend a fuel consumption claim contained in a brochure for the Ford Kuga.
But now the ASA has received complaints against two other automotive brands. This time, however, the disputes relate to financial information (rather than fuel economy claims) displayed in local adverts.
In the first, dated 30 August, complainant Stephanus Bekker cites a Volkswagen advertisement appearing in the Sunday Times Lifestyle Magazine on 7 August. The print advert promotes the Amarok bakkie, and contains a table setting out all the financial information pertaining to the deal. The final item on the table is “Total Cost”, which is listed as R602 983.
Bekker argued that the amount did not include the deposit, and was actually just the total cost of repayments, credit, or financing after the deposit of 13% had been paid. He said that the advert was therefore “misleading”.
Volkswagen SA responded that it did not believe the advert was misleading “to the reasonable consumer”. However, the brand said that it appreciated the complainant’s concerns and voluntary undertook to “withdraw the advertisements comprising the subject matter of the complaint and further undertake that such advertisement will not be used in the same form in future”.
VW SA also noted that all future advertising would reflect this final amount as “Total Cost of Finance” instead of merely “Total Cost”.
Taking all the relevant information into account, the ASA Directorate said it was “satisfied that the voluntary undertaking would adequately address the concerns raised by the complainant in this particular instance”, adding that no further action on its part was necessary.
The second case, dated 29 August, saw Guillaume Cillie lodge a complaint about a Renault South Africa television commercial promoting the Kadjar, as flighted on DSTV channel 144 at the end of June.
At the end of the TV advert, the following information appeared in small font at the bottom of the screen (for approximately three seconds):
“With 10% deposit | Over 72 months | 35% balloon payment | 10.35% interest rate | Retail price of R364 900 | Total cost of R482 399 | Retail price in accordance with 1 June 2016 price list. Price excludes “on-the-road-costs”. Costs inclusive of initiation fee of R1 197 and excludes monthly service fee (R68,40) | Terms and Conditions apply | Features are model-specific and may vary | Deal is subject to credit approval terms and conditions of Renault Financial Services. A product of Wesbank. A division of First Rand Bank Limited. An Authorised Financial Services and Credit provider. NCRCP20″.
Cille complained that the finance terms in the commercial were “too small and fleeting to read properly”.
Renault SA replied that while it had used the “same format in the past few years without complaint, it was cognisant of the complainant’s view, and sensitive to his concerns”. The commercial in question had already been taken off air, but Renault SA said it was in the process of “ensuring that all future advertising carrying a financial offer [would] have an additional frame to allow more prominence to the terms of the offer”.
The ASA Directorate considered all the relevant documentation submitted by the respective parties and said that this “suggested remedy appears to address the complaint”. Therefore, no further action would be required.
