ARTICLE
4 September 2024

Don't Put Your Foot In It. Avoid Hike's Well-trodden Advertising Slip-Ups.

GA
Global Advertising Lawyers Alliance (GALA)

Contributor

With firms representing more than 90 countries, each GALA member has the local expertise and experience in advertising, marketing and promotion law that will help your campaign achieve its objectives, and navigate the legal minefield successfully. GALA is a uniquely sensitive global resource whose members maintain frequent contact with each other to maximize the effectiveness of their collaborative efforts for their shared clients. GALA provides the premier worldwide resource to advertisers and agencies seeking solutions to problems involving the complex legal issues affecting today's marketplace.
The ASA ruled against HIKE Footwear for misleading ads: their "100% MONEY-BACK GUARANTEE" was unsubstantiated, medical claims lacked regulatory approval, and testimonials were unverifiable. Advertisers must ensure guarantees are honored, medical claims are licensed, and testimonials are authentic.
United States Media, Telecoms, IT, Entertainment
To print this article, all you need is to be registered or login on Mondaq.com.

The ASA has recently considered complaints about three Facebook ads for HIKE footwear. The issues concerned claims about a money back guarantee, whether testimonials were genuine and whether the medical claims made could be backed up. These are all perennial issues which advertisers often get wrong.

So what happened here? The ads included the claims such as:

  • Enhanced Sensory Feedback ... Reduced Pressure Points ... Improved Circulation.
  • MONEY BACK 100% GUARANTEE.
  • DOCTOR-RECOMMENDED SOLUTION FOR PLANTAR FASCIITIS ... Reduced pressure points ... Strengthens Foot Muscles ... Natural Foot Movement.
  • Barefoot shoes for better health.

One advertisement featured a video of a man in a white doctor's coat. He explained that HIKE footwear could improve foot pain and conditions such as neuropathy, plantar fasciitis, arthritis and bunions. The ads also included testimonials.

The complainant challenged whether the claim "100% MONEY-BACK GUARANTEE" was misleading, because they had been unable to claim under the guarantee. In addition, the ASA challenged both (a) whether the ads made medical claims for unlicensed products; and (b) if the testimonials were genuine.

HIKE said they had removed the ads and said they would make sure that they would not be published again. They explained they would review their advertising practices to prevent similar problems arising in future. They further said that they had no record of the customer requesting their money back as part of their return policy. HIKE said that the testimonials were genuine reviews from their customers on their store and a review platform.

Guarantees

The CAP Code states that marketing communications must not use the word "guarantee" in a way that could confuse consumers about their rights and that marketers must promptly refund consumers who make valid claims under an advertised money-back guarantee.

The ASA considered that consumers would understand the claim "100% MONEY-BACK GUARANTEE" to mean that they could receive a full refund if they were not happy with the product. As the ASA saw no evidence from HIKE Footwear that they honoured the guarantee, and the complainant provided information showing that they had contacted HIKE numerous times enquiring about how to return the product, the ASA concluded that the claim "100% MONEY-BACK GUARANTEE" was misleading and breached the CAP Code.

Medical claims

The CAP Code states that medicinal or medical claims and indications may only be made for a medicinal product licensed by a regulator such as the Medicines and Healthcare products Regulatory Agency ('MHRA').

The ASA considered that consumers would interpret claims such as "Improved Circulation" and the claims spoken by the character in the white coat as medical claims.

As the ads made medical claims, the products needed to meet the requirements for medical devices but they were neither registered nor had the applicable conformity marking. The ads therefore breached the CAP Code.

Testimonials

The CAP Code says that marketers must hold documentary evidence that a testimonial or endorsement used in a marketing communication is genuine, unless it is obviously fictitious, and the advertiser must hold contact details for the person who gave it.

The ASA considered that consumers would assume the testimonials in the ads were genuine. HIKE had said that the testimonials were authentic, but the ASA did not receive corresponding evidence and did not receive contact details for the people who gave them. Furthermore, the testimonials were exactly the same, despite being attributed to different people. Therefore the ASA considered that they were misleading and breached the CAP Code.

Lessons from this ruling

There are several key points to note from this ruling:

  • If you offer a guarantee, you need to make sure that you honour it. It's interesting that the complainant contacted the ASA here, rather than trading standards to raise a point of consumer law.
  • If you make medical claims, make sure the products have the applicable conformity marking and are registered with the MHRA or other appropriate regulator.
  • And finally, you need to ensure that any testimonials are genuine (and hold evidence that they are).

"We told Hike Future Ltd t/a HIKE Footwear to ensure that future ads did not claim there was a 100% money-back guarantee if not all valid refund requests were honoured. We told them not to make medical claims for products that did not have the applicable conformity marking and were not registered with the MHRA. Furthermore, they should not imply testimonials were genuine if that was not the case."

https://www.asa.org.uk/rulings/hike-future-ltd-a24-1238532-hike-future-ltd.html

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More