False claims in adverts cost companies dearly

Kenyan brands stand to lose 12 to 67 per cent in monthly revenues when they make false claims in their advertising: a tendency that accounts for four fifths of the complaints lodged with the Advertising Standards Board (ASB).

According to Joe Otin, the ASB Chairman, the main issue when it comes to ethical advertising in Kenya is the conflict between competing firms.

“Around 80 per cent of the complaints lodged with the Advertising Standards Committee, an executive arm of the ASB, are to do with false claims. If a company makes false claims the first person to notice will be the competitor, who usually lodges a complaint,” said Otin.

Consumers are not also impressed by the adverts. The practice is costly, according to a 2015 paper titled Demand for ‘Healthy’ Products: False Claims in Advertising by Anita Rao of the University of Chicago and Emily Wang of the University of Massachusetts.

The paper, which measured the impact that deceptive claims in advertising have on consumers, found that after four products under study stopped using false claims in their adverts there was a 12 to 67 per cent loss in monthly revenue.

This amounted to a $0.40 million to $3.82 million loss in monthly revenue.

False claims in advertising include both incorrect statements and the use of misleading information that is likely to create a false impression.

In Kenya, false claims in adverts are prevalent across many industries but the personal care market is particularly prone to the practice.

For example, in September 2013 Colgate-Palmolive East West Africa Region (PTY Ltd) lodged a complaint at the ASC against Reckitt Benckiser South Africa (Proprietary) Limited over claims made in a Dettol Skincare TV commercial.

Some of the statements that the claimant objected to were: “Dettol Skincare contains the right balance of moisturisers and 24 hour nonstop protection from germs; Dettol Skincare enters deep within your pores and removes germs that leaves it feeling smooth and even toned everyday; and New Dettol Skincare for beautiful germ-free skin”.

The complainant argued that the advert carried false claims which were also misleading and “exploited the credulity of consumers in breach of clause 10.3 of Section VI of the code,” according to the 2014 ASC judgement.

Clause 10.3 of Section VI of ‘The Code of Advertising Practice and Direct Marketing bars an advert from ‘‘any statement or visual presentation which, directly or by implication, omission, ambiguity or exaggerated claim, is likely to mislead consumers about the product being advertised, the advertiser or about any other products or advertiser.”

Following a rejoinder from both the respondent and claimant, the ASC decided that the misleading claims should be removed from the advert. False claim complaints such as this are common at the ASB.

According to Otin, this is because rival brands understand the technicalities involved and easily notices discrepancies.

Beyond false claims, culturally or religiously offensive material is another irksome issue.

“Usually those issues are not brought up by competitors, they are brought up by members of the public. They have complained about certain adverts being sexually offensive, we have written to those organisations and they have complied. We have had religious leaders raise matters with us over certain adverts, we have raised the matters with the concerned organisations who have changed their advertising accordingly,” said Otin.

-African Laughter