Cash with Order Advertising Index
16.1 Ensuring Customers' Satisfaction
16.2 The Approval Process
16.3 Obtaining Advertising Clearance
16.4 Complaints about Fulfilment
16.5 Teleshopping
16.1 Ensuring the Customer's Satisfaction
Advertising which invites people to make payment in advance of goods being received is classed as Cash with Order (CWO) advertising or Distance Selling Advertising. For the purposes of this section, both are referred to as CWO advertising.
Rule 11.2 of the Code requires broadcasters who carry CWO advertising to satisfy themselves that arrangements are in place to safeguard customers' payments and to ensure that customers have no reasonable grounds for dissatisfaction with the transaction.
In order to enable broadcasters to comply with these requirements, Clearcast carries out an additional approval process, which is distinct from the clearance of the advertisement itself. The purpose of this process is to ensure that respondents receive the goods which they have ordered to their satisfaction or else have their payment reimbursed, and that their privacy is respected at all times.
16.2 The Approval Process
Clearcast’s procedure is designed to ensure that prospective CWO advertisers satisfy certain criteria in the ways in which they handle and fulfil the orders which they receive through broadcast advertising. Approval is also required when broadcast advertisements refer to CWO mechanisms in other media, e.g. press advertisements or teletext services. It is not necessary, however, in the case of advertisements for catalogue retailers, provided the catalogue is supplied free of charge.
Anyone proposing to advertise on a cash with order basis should contact the Administration Executive at Clearcast. This should be done at the earliest possible stage.
The prospective advertiser is then asked to complete an agreement, called the Cash With Order Agreement (see Appendix 5). In addition to the main Agreement, an additional form has to be completed for each product to be advertised and each campaign to be mounted. Once the completed Agreement has been received by Clearcast, a decision on acceptability can normally be given within ten working days. Although Agreements sent by fax are sufficient as initial working documents¸ originals must be in the hands of Clearcast prior to the start of any advertising.
It is essential that the Agreement form is fully completed and that the information provided is accurate. If the prospective advertiser has any queries or cannot complete any sections¸ the advice of the Administration Executive at Clearcast should be sought without delay.
It is also essential that Clearcast is informed immediately of any changes in the information provided which may arise during the currency of the Agreement.
The Agreement form must be signed by a principal, board director or other authorised signatory of the advertiser.
Failure to comply with any of these particulars may result in Clearcast withholding or rescinding clearance of the advertising.
16.3 Obtaining Advertising Clearance
Cash with order advertisements need to be cleared by Clearcast in the normal way; full details can be found in these Notes of Guidance. Advertisements in this category are subject to the same rules as other advertisements, but the following points are particularly pertinent:
(i) no goods may be sent to respondents unless their prior permission has been obtained: this practice is sometimes referred to as ‘inertia selling’ and the prohibition extends to sending additional goods to those which have been ordered through cash with order advertising;
(ii) no representative may call on respondents unless the intention to do so is made clear in the advertisement or in particulars subsequently supplied and unless the respondent is given an adequate opportunity to refuse any call;
(iii) no CWO advertisement may be addressed to children or invite them to order products by mail or telephone;
(iv) advertisements should not describe goods as 'free' unless they are supplied at no cost, or no cost other than postage or carriage, to the recipient. (For full details of the rules governing the use of the word 'free', please refer to these Notes of Guidance);
(v) since viewers and listeners have no opportunity of examining goods prior to purchase, it is particularly important that descriptions or visual representations of products, demonstration sequences, etc., contain nothing likely to mislead viewers or listeners about the nature of the product or its capabilities;
(vi) BACC will require claims made for the product to be substantiated in the usual way prior to acceptance of the advertising.
It is advisable to allow as much time as possible for advertising clearance, especially in cases where the commercial already exists and is of foreign origin, since amendments may be required.
It should be noted that advertisements cannot be given final clearance for transmission until the CWO clearance procedure has been completed.
16.4 Complaints About Fulfilment
In the event of significant complaint from viewers regarding non-fulfilment or inadequate fulfilment, Clearcast or the ASA may order the suspension of the advertising. In the event of any complaint, the advertiser is expected to rectify the situation promptly, to both the customer's and Clearcast's satisfaction, as well as that of the regulator (ASA) where relevant.
16.5 Teleshopping
Additional rules regarding teleshopping can be found in the Rules on the Amount and Distribution of Advertising available from Ofcom.