GC Logic, from London, had bought a business database from
another company, based in India, in order to send out mail shots to
targeted businesses. The mailing sent by the company included an
invoice for £49, and thanked recipients for registering their
business details with GC Logic's directory service.
The letter then explained that the service's 30-day free trial
period was over and that to be included in the directory in future,
the recipient would have to pay £49.
One company complained to the Advertising Standards Authority,
explaining that it had not subscribed to a free trial for the
directory.
GC Logic admitted that none of the recipients had subscribed to
a free trial and that it had received many complaints over the
mailing. According to the ruling the company agreed that it had
taken the wrong approach to the mail shot and confirmed that it
would not use that database again.
The ASA found GC Logic in breach of requirements that claims
made in advertising must be capable of substantiation, must be
honest and must not mislead. It was concerned, said the watchdog,
"that the mailing postured as an invoice and concluded that the
mailing misleadingly implied the recipients owed money."
GC Logic has been warned not to take the same advertising
approach again.
