A new approach to unfair trading regulations?

Since the Consumer Protection from Unfair Trading Regulations 2008 were brought into force they have not been enforced as strictly as may have been expected. However, two recent cases demonstrate an increasingly tough approach to advertising regulation in the UK.

What did the recent cases involve?

Last year, the Office of Fair Trading investigated Hand-Picked Media, a consumer blogging network, in relation to promotional blogging. Hand-Picked Media had engaged individuals to publish content online which promoted the activities of Hand-Picked Media's customers but did not disclose clearly that these promotions were being paid for. The Office of Fair Trading felt that this was a "misleading omission" contrary to the Regulations. In this case, Hand-Picked Media signed undertakings to comply with the law in order to avoid a penalty.

However, a recent case involving two brothers, Victor and Henry Mears, shows that advertisers who seek to mislead consumers may not always escape penalties such as fines. The Mears brothers had advertised "an amazing snow-covered Lapland village" to consumers in Dorset. You may recall the press coverage showing a dilapidated woodland scene, which was described in the words of the judge as "an averagely managed summer car boot sale". The brothers have now been jailed for 13 months each on eight charges relating to misleading advertising under the Regulations. They were also disqualified from being company directors for five years.

A concern for retailers?

These cases and the tough sentence handed out to the Mears brothers can be seen as an increasingly robust approach now being taken by the authorities in relation to marketing and advertising. Businesses should ensure that their marketing communications in adverts are honest, decent and fair and not misleading. If you have any concerns regarding your advertising you should seek legal advice!

Tom Torkar is an Associate in the Michelmores Technology, Media and Communications team. For further information on the issues raised in this article, please contact Tom at tom.torkar@michelmores.com.