- The Advertising Regulatory Board upheld a complaint against a Jetour Dashing television advertisement.
- The advertisement promoted a monthly repayment of R4,999 without disclosing a 72-month repayment term and a 40% balloon payment.
- The regulator found the omission of these material finance terms breached advertising rules.
A television advertisement promoting the Jetour Dashing from R4,999 per month has been found misleading, with the Advertising Regulatory Board (ARB) ruling that consumers were not told the offer was based on a 72-month finance agreement and a 40% balloon payment.
The complaint was brought by a consumer who questioned how the advertised monthly instalment had been calculated. The commercial displayed the message, "Introducing the all-new Dashing from R4,999 pm", together with a statement that terms and conditions applied.
The complainant argued that viewers were not told what deposit was required, how long repayments would continue, or what amount would remain payable at the end of the finance agreement.
According to the complaint, consumers were left with unanswered questions about the true cost of the offer and the basis upon which the monthly repayment figure had been calculated.
Complaint considered without response
Jetour South Africa was allowed to respond to the complaint. However, despite attempts by the Advertising Regulatory Board to obtain a response, none was received.
The Directorate noted that Jetour is not a member of the Advertising Regulatory Board. While the ARB cannot issue binding sanctions against non-members, it may consider complaints and issue guidance to its members regarding whether advertisements should be accepted or withdrawn. The matter therefore proceeded based on the complaint and the advertisement itself.
Advertisement omitted information required by the Code
The Directorate considered the provisions of the Code of Advertising Practice dealing with misleading claims and motor vehicle advertising.
Clause 11.3 requires advertisements offering motor vehicles on a lease or finance basis to include full details of the payments to be made and explain how any residual value will be determined if ownership is obtained at the end of the agreement.
The Directorate quoted the Code, "Advertisements offering motor vehicles on a lease or rental basis should include full details on the payments to be made and the basis on which the residual value will be determined if ownership of the vehicle is obtained at the end of the agreement."
The central issue was whether the advertisement's reference to a monthly repayment of R4,999 was sufficient without disclosing the finance structure that produced that figure.
The Directorate found that the terms and conditions underlying the offer revealed that the repayment was based on a 72-month term and a 40% residual value. Neither of those details appeared in the television advertisement.
According to the ruling, "Clause 11.3 of the Code is clear that advertising stipulating a monthly price for a vehicle must also be transparent about the residual value and the number of payments to be made."
The Directorate also found that the necessary information could have been presented briefly and clearly within the advertisement itself.
Advertisement found misleading
The Directorate accepted that advertisers cannot include every term of a finance agreement in a television commercial. However, it found that the omitted payment information was material to consumers and expressly required by the Code.
The ruling states, "When it comes to the advertised price of a car repayment, it is insufficient for the advertiser to merely state that terms and conditions apply, as the deposit and residual are material factors in calculating the price… This payment information is expressly required by the Code."
It ultimately held, "The advertisement is therefore in breach of both Clause 4.2.1 of Section II and Clause 11.3 of Section III of the Code."
As a result, ARB members have been requested to refrain from accepting advertisements from the advertiser where payment-related terms and conditions are not expressly included or clearly presented within the advertisement.
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