November 25, 2019

CAP notes that while subscription boxes may vary wildly in terms of both cost and frequency, the marketing of them should always be upfront about exactly what consumers are signing up for.

The advice note includes the following:

• offering “free trials”: in principle, there is nothing wrong with marketers offering consumers a “Free trial” of their subscription boxes. CAP notes that problems arise however when consumers are unknowingly enrolled onto ongoing payment plans, often described as “subscription traps”. Advertisers must make explicitly clear the level of ongoing financial commitment required to take part in a “Free trial” promotion. Ads must clearly state all significant conditions likely to influence a consumer’s decision to participate in any “Free trial” offer, in line with Code rule 17. In particular, advertisers should include information on:
  • whether a paid subscription starts automatically after the trial unless cancelled;
  • how to cancel if the arrangements for doing so differ from what a consumer might reasonably expect;
  • the extent of the financial commitment if the subscription is not cancelled during the trial; and
  • any other significant conditions: for example, geographical or other restrictions and end-dates.
• consider the prominence of material information and significant conditions: all material information an applicant needs to know in order to make an informed decision about whether to buy (or not) must be included in the ad. Clarity is key and simply stating “Ts&Cs apply” is unlikely to be considered sufficient. Material information and significant conditions must be displayed with such prominence that consumers will see them before choosing whether or not to sign up to a subscription or take up a promotional trial for one. Although rule 18 allows for some information to be accessible elsewhere, only in extreme circumstances will a media type be considered to be “significantly restricted by time or space” (and this is likely to be limited to sponsored ads on search engine sites and extremely small banner ads). Ultimately, if it is not possible to include all relevant significant conditions within an ad, marketers should consider whether the media type in question is suitable to promote such an offer; and
• the rest of the Code applies too: as with all ads, any objective claims about the contents of the box or what those products can do must be supported by evidence and not exaggerated. There are also specific restrictions on the claims that can be made in relation to particular products, such as alcohol, food and health and beauty products. Marketers must be familiar with any specific rules that relate to the products included in the boxes and must be able to prove any claims made.

To read the advice note in full and for access to further information, click here.