ASA upholds complaint on free trial subscription ad

The question

What steps do you need to take when advertising products or services with a subscription commitment?

The key takeaway

The ASA continues to keep a keen eye on the advertising of products and services which have a connected subscription element. Make sure that any such ads include very clear signposting over the ongoing subscription obligation.

The background

The website of American Golf, an online golf retailer, advertised an Arccos Caddie Link for £119.99. The ad stated that the device “seamlessly links to Arccos Caddie sensors and the Arccos App and automatically records shot data without the need to carry your phone during play”. A free initial trial for the device was offered, after which a yearly subscription was necessary to gain access to the data gathered by the device. The basis for this complaint was that the need for a subscription was not stated in the original ad. 

The development

After the ad aired, a complainant who had purchased the device challenged whether the ad was misleading due to its failure to state that after the initial trial, a yearly subscription was necessary to access the data. Whilst American Golf acknowledged receipt of the complaint, they did not provide a substantive response to the ASA’s enquiries.

The complaint was upheld. Whilst the ASA acknowledged that American Golf were prepared to make changes to their website ad, the versions of the ad seen by the complainant and the ASA (when it considered the claim) failed to indicate the need to pay a subscription for access to data provided by the device.

The ASA took the view that the need to pay a subscription was likely to influence a consumer’s decision to purchase the device. As the ad made no clear mention of this (ie the need to purchase a subscription to access the data), this rendered it misleading. It followed that the ad had breached rules 3.1 and 3.3 (misleading advertising) of the CAP Code. The ASA ruled that the ad must not appear again in the form complained of. American Golf was warned to ensure that future ads “did not mislead by omitting significant information consumers were likely to need before making a decision to purchase”.

Why is this important?

This ruling is a reminder to businesses of the high-level of care that must be taken when advertising their products or services that have subscriptions attached. 

Subscription models have seen a prolific rise in recent years. In particular, ‘free trials’ for subscription services are now frequently used as an effective marketing tool to hook new consumers. Whilst the European Commission recognises that free trials are “not harmful per se”, issues arise when a consumer unknowingly commits to an ongoing payment plan. This is often the result of ads that mislead the consumer by either omitting significant information or not making this information sufficiently clear. When this happens, it is considered a consumer “subscription trap”; suggesting a malicious intent on the part of the businesses offering them and leaving them vulnerable to legal and regulatory challenges. 

Any practical tips?

Any advertising for products or services with a form of subscription attached needs particular care, both in terms of presenting the existence of the subscription and the key elements which are likely to impact the transactional mind of the consumer. 

Clear and simple wording should be employed in the ad, so any significant conditions are clear to the consumer. The most obvious example is making it clear that a paid subscription will begin automatically after the initial free trial and its ongoing cost. Don’t forget of course that subscriptions mean continuing obligations for consumers after the free trial and beyond, so ensuring that the right notification systems are in play is equally important. Also, check out the ASA’s helpful guidance, in particular 'Promotional marketing: Subscription traps and free trials' for more information.

Autumn 2022