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- The ARB found an ad by rain misleading for stating that customers can access 5G home wifi and free monthly calls and data for two phones for R1.
- The mobile communications company failed to disclose that, after paying the R1 joining fee, customers would need to pay a R599 monthly subscription fee.
- While the T&C clarified everything, the ARB said the advert was misleading because it did not mention the monthly subscription fee from the onset.
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Mobile communications company rain found itself on the wrong side of South Africa's ad regulator after one of its adverts stated that customers could access 5G home wifi and free monthly calls and data for two phones for R1.
After clicking on the advert, one complaint found that the fee to access all the products included is, in fact, R599, with the joining fee being R1.
The complainant, who took to the Advertising Regulatory Board (ARB), argued that this would likely mislead customers, especially since rain only advertised the joining fee and not the product's monthly fee.
Rain's response
In its defence, rain said customers interested in the promotion (which has since expired) would have to pay a joining fee of R1. After joining, the customer would then be charged a monthly fee of R599, which they must pay on a date suitable to them monthly.
According to the mobile communications company, a customer would pay an upfront, pro-rated amount for the first month as the joining fee.
The difference with the R1 deal is that, while the promotion was still running, customers would only pay an upfront fee of R1 (provided they took it during the promo period) instead of R559, as with other products.
Following the R1 joining fee, customers then start paying the standard subscription price of R599 from their second month of using the rainOne product.
ARB Ruling
According to the ad watchdog, "advertisements should not contain any statement or visual presentation which, directly or by implication, omission, ambiguity, inaccuracy, exaggerated claim or otherwise, is likely to mislead the consumer".
In the case of the rain advert, the telecommunications company only stated that customers can "join now for just R1" with "unlimited 5G home wifi + free monthly calls and data for 2 phones" appearing just below that.
Although rain states that the ad must be read with the terms and conditions, it must acknowledge that a misleading impression cannot be later clarified in the terms and conditions.
"While the directorate agrees that it may be unreasonable for customers to expect to pay R1 and have unlimited access to the product forever, the directorate is of the view that the wording in the advertisement is nonetheless misleading."
The ad watchdog said:
With services, such as wifi, it is common practice for South Africans to pay for services, like an installation fee, but not a joining fee. Therefore, rain cannot automatically assume that South African customers are used to this. The company should have indicated that a subscription fee follows the joining fee, argued the directorate.
While the terms and conditions clarify everything, the directorate notes that the advert was misleading.
Additionally, using the word "joining", but failing to mention that there was also a monthly subscription fee created further confusion.
For this reason, the ARB found the advert to be misleading and, although the promotion was long over, the ad watchdog urged the public not to accept advertising from rain, which stated "join now for just R1", without further clarity.
