ASA upholds complaint against London landlord’s ‘Black Friday’ shared ownership advert

Shared Ownership Resources (SOR), an information platform launched by former shared owner Sue Phillips, raised two issues in her complaint about the poster.

SOR challenged whether the promotion was administered fairly. This is because SOR believed that such an offer, with various stages and such short deadlines, was not suitable for the purchase of a shared ownership home.

The second issue highlighted how the conditions of the promotion had not been made sufficiently clear.

It is the second case brought by SOR. In September last year, the ASA upheld two of three complaints of misleading advertising related to shared ownership on a website that was owned by the National Housing Federation (NHF) at the time.

In its reasoning about the most recent complaint, ASA said that it “understood that Black Friday promotions were often time-limited and commonly applied to consumer goods and that they were associated with impulsive purchases on low-risk items”.

As a result, on the first issue, the ASA said that it considered that purchasing a home, whether through shared ownership or otherwise, was a serious, complex financial decision and something which required time and thought from consumers, especially first-time buyers.

The watchdog added: “Because of the short timeframe in which consumers had to choose a shared ownership home and commit to purchasing it, we considered that the two-week promotion window meant that consumers could be rushed to make a quick decision on a considered purchase for fear of losing out on the offer.”

On the second issue, the ASA said it was its understanding that after the reservation fee had been made, the exchange of contracts must take place within 28 days of the legal pack being issued. 

However, that timeline had not been referred to in the advert. Consequently, the watchdog found that the speed at which it was necessary to exchange contracts and complete the sale in order to remain eligible for the voucher had not been made sufficiently clear to consumers.

In response to the complaint, L&Q said that “the deadlines for the exchange of contracts and completion were not implemented specifically for the promotion and that they corresponded with the standard timelines for the purchase of a L&Q shared ownership home”. 

On the issue of short deadlines, the landlord argued that “by giving consumers a two-day cooling-off period, they gave prospective buyers more protection than the industry standard”.

However, the ASA said the advertisement must not appear again in the form complained about, and L&Q must ensure that their promotions were administered fairly and responsibly in future. 

The watchdog also advised the G15 member to ensure that it communicated all applicable significant conditions in marketing communications referring to promotions, including where the omission of such information was likely to mislead consumers.

Ms Phillips said: “To promote home-buying – one of the most risky and expensive purchases most people will ever make – by high-jacking a marketing slogan associated with TVs, mobile phones, kitchen appliances, beauty products and the like, trivialises the decision.

“The ASA ruling demonstrates that housing associations don’t necessarily give people considering shared ownership the facts they need to make informed decisions, or the time to undertake meaningful due diligence.”

Claire Brenlund, sales and marketing director at L&Q, said, “We are committed to marketing our homes in a fair and transparent way, and supporting customers to make an informed choice. 

“We have implemented the ASA’s recommendations in full, and have actively sought their feedback on all campaigns this year, to ensure our advertising is in line with industry best practice.”