- ARB determines EFI Removals misled consumers by advertising “Risk Insurance” without proof of coverage.
- The complainant’s damaged television highlighted the disparity between the promise and the actual evidence.
- ARB orders the removal of the claim from all advertising and instructs members not to accept it.
When a customer’s Hisense television was damaged during a long-distance move, EFI Furniture Removals’ website promise of “Risk Insurance” provided little protection.
The Advertising Regulatory Board concluded that the claim misled consumers and created an expectation that loss or damage during transit would be covered. The complainant stated that the television’s screen looked broken or malfunctioning.
He also mentioned that EFI refused to respond when he asked about the complimentary insurance offered. The Directorate noted that services like this involve some risk since household items must be packed safely, transported, and unpacked at the new destination.
The Directorate also pointed out that it cannot assess the quality of an advertiser’s services, only whether the advertising violates the ARB Code. Household items can be valuable or carry sentimental worth, and the claim that “Risk Insurance” is provided as a complimentary service likely suggests extra security to customers.
Advertiser fails to substantiate insurance claim
EFI Removals claimed it had sufficient transit insurance, but that it only covered fire, accident, collision, or overturning. The company stated that the complainant “signed off on this insurance cover when he accepted the quote” and noted customers were responsible for ensuring items are securely packed. The Directorate requested proof of the policy or a copy of the quotation document, but “no such copy was provided.”
The advertiser did not clarify whether the television that appeared damaged during the move was securely packed or if other factors contributed to the visible damage. EFI “has not explained why its ‘Risk Insurance’ would not cover this incident.”
ARB finds claim misleading
The Directorate observed that the term “risk insurance” suggests that insurance exists and that any damage will be covered. This has not been demonstrated. Clause 2 of Section II of the ARB Code states that “advertisements should not be framed in a way that abuses consumer trust or takes advantage of their inexperience, knowledge, or credulity.”
Clause 4.2.1 states that “advertisements should not contain any statements or visuals that, directly or indirectly, through omission, ambiguity, inaccuracy, exaggerated claims or otherwise, are likely to mislead the consumer.” The Directorate concluded that the claim “Risk Insurance” as it appears on the Advertiser’s website violates Clause 4.2.1 of Section II of the Code.
Sanction and consumer protection
The ARB ordered EFI Furniture Removals to retract its claim of offering “Risk Insurance.” Members of the ARB were instructed “not to accept any advertising from the advertiser if it claims to provide complimentary ‘Risk Insurance.’”
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