The Advertising Regulatory Board has ruled against MTN regarding a complaint about misleading advertising for the Xiaomi Redmi Note 11 smartphone.
Complainant Dianne Barnard upgraded two of her contracts telephonically, opting for two Xiaomi Redmi Note 11s, which were advertised to come with a free MiBand S and Xiaomi TV Stick.
However, Barnard never received the free items with her delivery. She asserts that MTN regularly advertises free gifts to persuade customers to sign contracts but often fails to honour their promises.
Barnard also referred to three upgrades that her son processed in July and August 2022, for which a brochure advertised that he would receive a free Xiaomi Smartwatch with each of the new devices.
However, the free smartwatches never materialised, with MTN blaming a lack of stock.
According to Barnard, MTN said they would contact him when it had replenished its stock, and to date, he has received no feedback. It should be noted that the ARB ruled against MTN for a similar issue relating to a Samsung galaxy s22 promotion through which customers would receive a free 25W fast charger.
Given the opportunity to respond, MTN told the ARB that it could not provide feedback on the second complaint as the advertisement in question was not submitted.
However, it said the promotion relating to the first complaint was only available to the first 1,000 customers and for upgrades completed in-store. MTN said the booklet introduced customers to the promotions on page 40, with “T&Cs apply” noted under the free item listing. An asterisk preceded qualifying devices.
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“After purchasing a Redmi Note 11 or Redmi Note 11 Pro, the customer will receive one Mi TV Stick and one Mi Band 5 (with a combined value of R1,699) for free,” the terms and conditions read.
“Offer limited to the first 1,00o customers. Value offers available in-store only, bundled through KNR.”
The operator also noted that the advertisement and promotion are no longer running as they were only applicable during September 2022. After considering the facts presented, the ARB said that despite the promotion no longer being available, it considered the complaint as a matter of principle.
It noted that while the number of free items being limited to 1,000 seems low at first glance, the amount is acceptable if the number of Xiaomi devices sold by the operator in a month isn’t high “as the Xiaomi brand appears to be a fairly new brand in the country”.
Xiaomi devices have been available in South Africa since November 2015. “The Advertiser is advised, going forward, to ensure that the number of free items available is reasonable in relation to the sales demand for a particular device,” the ARB said.
The ARB explained that the advertisement submitted to it by the complainant had no reference to limitations or terms and conditions. “It does not even, next to the free offer, include an asterisk,” it added.
However, it still showed that customers would get the free items with their purchase. “A customer reading this part of the advertisement would have no way to know that there are a number of material limitations to the offer,” the ARB stated.
“In this regard, the Directorate considers that both the limitation of items and the in-store only availability are material limitations.”
However, it noted that the advertisement submitted to it appeared to be taken from a larger booklet. Despite MTN going to great lengths to explain the layout of its promotional booklet, the ARB said the explanation was not convincing.
It found that it is not apparent to the ordinary customer that the pages on which the devices appeared and the deals related to those devices must be read wholly and together, as indicated by MTN.
“Based on the above, the Directorate finds the Advertisement to be misleading and in contravention of Clause 4.2.1 of Section II of the Code,” the ARB ruled.
“The Advertiser is advised to prepare future advertising of special offers and free items in line with the guidelines laid out in this decision, ensuring that consumers are aware of material limitations to such offers.”
MTN told MyBroadband that it would comply with the recommendations made by the ARB. “MTN has noted the Advertising Regulatory Board ruling regarding the complaints brought forward by Dianne Barnard,” it said.
“It is important to note that the promotion stated, under terms and conditions, that the promo offer was limited and it was applicable to in-store upgrades only.”
“MTN will comply with the recommendations made by the Regulator in its future advertisements,” MTN added.
SOURCE: My broadband
