- The ARB found the SPAR advertisement misleading due to missing key information about SIM card requirements.
- Consumers were likely to believe the free data applied to all purchases regardless of network.
- Members have been instructed not to accept similar adverts unless the SIM requirement is clearly stated.
The promise of “free data” drew in customers, but the fine print that mattered most was missing.
A consumer complaint has resulted in a ruling against The SPAR Group Ltd after it emerged that shoppers were only told after purchasing that a SPAR mobile SIM card was required to access the advertised data rewards.
The ruling centres on a KWIKSPAR promotion that advertised deals accompanied by offers such as “+50MB FREE DATA”, “+100MB FREE DATA”, and “+250MB FREE DATA”. These claims appeared alongside the phrase “SPAR mobile”, but without any clear explanation that the benefit was limited to customers using a SPAR mobile SIM card.
The complainant, identified as a consumer, challenged the advertisement after discovering post-purchase that she did not qualify for the free data without a SPAR SIM card. The SPAR Group Ltd, despite being allowed to respond, did not participate in the proceedings.
The Advertising Regulatory Board considered the matter under Clause 4.2.1 of Section II of the Code of Advertising Practice, which prohibits advertising that misleads consumers through omission, ambiguity, or unclear presentation.
A jurisdiction issue arose because SPAR is not a member of the ARB and did not submit to its authority. The Directorate clarified that while it cannot impose binding sanctions on non-members, it is empowered to issue rulings for the guidance of its members. This position has been confirmed by the Supreme Court of Appeal, and no further appeal was allowed to the Constitutional Court.
Arguments and analysis
At the heart of the dispute was whether the advertisement sufficiently informed consumers that the free data offer was conditional on using a SPAR mobile SIM card.
The Directorate recognised that the phrase “SPAR mobile” appeared consistently alongside the free data claims, suggesting a connection between the promotion and the SPAR mobile service. However, this was not considered enough to remove ambiguity.
The Directorate explained, “Consumers familiar with the service might realise that the offer is only available to people who have the Spar SIM card, but most consumers will conclude that Spar Mobile is offering them free data, regardless of their SIM card.”
This interpretation placed emphasis on how an ordinary consumer would understand the advertisement, rather than what a more informed or experienced customer might infer.
The absence of a clear qualification meant that the advertisement could easily be interpreted as a universal benefit. The Directorate pointed out that resolving the issue would have required only a minor wording adjustment, stating, “A change of the claim ‘SPAR mobile’ to ‘With a SPAR mobile SIM card’ could easily clear all confusion.”
The finding and its impact
The Directorate concluded that the advertisement was ambiguous and therefore misleading. It found that the omission of the SIM card requirement placed the advertisement in breach of Clause 4.2.1 of Section II of the Code.
Although the ruling is not binding on SPAR as a non-member, it carries practical consequences. ARB members have been instructed not to accept or publish similar advertising unless it clearly states that an active SPAR mobile SIM card is required to access the free data.
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