Moonstone: Outsurance advert banned

Hereunder is an extract from the Advertising Standards Authority webpage:

The advertising agency The Firehouse, on behalf of Mutual and Federal, lodged a competitor complaint against Outsurance’s campaign highlighting the benefits of insuring through Outsurance. In each commercial, a customer is seen having their insurance or claim approved. Three gentlemen appear in the background laughing with an evil tone saying things such as “they think they have fixed excess, little do they know...” or “let’s make her wait ...” another man stops them and clarifies some of the hidden conditions.

The commercial ends highlighting one of the following aspects with regard to its insurance offers:

• Excess is fixed;
• Excess will not increase with the value of claims;
• Guaranteed premium for 12 months even if you claim;
• Stock is covered in full against theft;
• No compulsory waiting period for claims.

COMPLAINT
The complainant argued that it is also able to offer their clients the same benefits that Outsurance is claiming to have. The respondent’s campaign is giving the insurance industry as whole a bad reputation and portraying it in negative light. The respondent’s campaign insinuates that it is the only insurance company that offers clients those services, which is not true.

RELEVANT CLAUSES OF THE CODE OF ADVERTISING PRACTICE
In light of the complaint the following clauses of the Code were taken into account:

• Section II, Clause 4.2.1 – Misleading claims

• Section II, Clause 6 – Disparagement

RESPONSE
The respondent submitted that the television and radio commercials that are the subject of the complaint have been discontinued, in order to make way for its “Staff Helping SA OUT” campaign. The commercials will not be flighted again in its current format, and the print advertisements which compliment the television advertisement have also been discontinued and will no longer be used again in future, except for those advertisements which have been scheduled will appear for the last time.

ASA DIRECTORATE RULING
The ASA Directorate considered all the relevant documentation submitted by the respective parties.

The ASA has a long standing principle which holds that where an advertiser provides an unequivocal undertaking to withdraw or amend its advertising in a manner that addresses the concerns raised, the undertaking is accepted without considering the merits of the matter.

The Directorate is satisfied that the voluntary undertaking made by the respondent to discontinue using the campaign will effectively remedy the complaint.

The undertaking is therefore accepted on condition that the advertising is withdrawn in its current format within the deadlines stipulated in Clause 15.3 of the Procedural Guide, and is not used again in future.

While we applaud M & F, and cheer the result, the damage to the industry, which includes Outsurance, has been done.

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