Gold ad broadcast via non-specialist channels leads to ASA ruling against Direct Bullion
The UK Advertising Standards Authority found the ad breached the BCAP Code as it implied that an unregulated product could have investment potential and had been broadcast on non-specialist channels.
A TV ad for gold dealer DB London Ltd, aka Direct Bullion, has sparked the concerns of the UK Advertising Standards Authority (ASA), which partially upheld a complaint against the ad, finding that it breached the UK Code of Broadcast Advertising (BCAP Code).
The ad, seen in August 2017, featured a voice-over that stated, “Have you ever thought about buying gold? Amidst today’s fragile global economy you’re not alone, as many people are returning to this physical commodity as a store of wealth”. Small print on-screen stated, “Prices may fluctuate”.
Then, large on-screen text appeared, stating, “29.7% Rise (2016)”. This was accompanied by an animation of a line graph with the line climbing progressively higher against an x-axis labelled “2016” and “2017”. The voice-over continued, “With gold rising by 29.7% last year and averaging 12% for the last fifteen years, we aim to provide a gold standard customer service with a promise to beat any price on gold bars and coins.”
The ASA challenged whether the ad breached the BCAP Code because it implied that an unregulated product could have investment potential and had been broadcast on non-specialist channels.
In upholding the complaint, the ASA noted that investment directly in gold was not regulated under the Financial Services and Markets Act 2000 and that the ad had appeared on a number of non-specialist TV channels. The body also emphasized that the ad referred to gold as “a store of wealth” and focused on the change in the price of the commodity over time.
The ASA considered that the ad promoted an investment and that because it was not regulated by FSMA, it should not have been broadcast on a non-specialist channel. The body therefore concluded that the ad breached the Code’s rule 14.5.4 (Financial products, services and investments).
The ASA ordered that the ad must not appear again in the form complained about. The company was told to ensure that their future broadcast advertising for investments not regulated or permitted under FSMA appeared on specialised financial channels, stations or programming only.
This is not the first time that the ASA pays attention to ads of investment products and their targeted clientele. In May this year, the advertising ruled against a TV advertisement for FxPro UK, which was found to be socially irresponsible as it appealed to a younger, student audience that are likely to be inexperienced in trading CFDs.
