Octopus Vitality advert banned for deceptive worth claims

A web-based advert for Octopus Vitality has been eliminated by regulators over issues it was deceptive shoppers in regards to the worth of its providers.

The advert in query, first seen through Fb in September 2024, included textual content studying “installs from £500″ and “Warmth Pump & Set up From As Little As £500”.

The Promoting Requirements Authority (ASA) obtained complaints, together with from the Vitality and Utilities Alliance, which challenged whether or not this declare could possibly be substantiated and if the advert omitted necessary pricing data.

Octopus Vitality’s pricing mannequin by its personal admission is “complicated”, pulling in knowledge from many sources reminiscent of a property’s Vitality Efficiency Certificates (EPC), property sort, complete flooring space, and property options; power consumption and patterns primarily based on earlier house surveys and installations.

The ASA concluded that the declare can be acceptable if a major proportion of shoppers might buy a warmth pump and have it put in by Octopus for £500.

Nonetheless, after wanting into gross sales knowledge across the time the advert appeared, solely 5.8% of warmth pump gross sales met the pricing standards.

“Within the previous months for which Octopus Vitality held knowledge, lower than 5.8% of gross sales made had been at or beneath the claimed worth,” the ASA added.

Octopus argued it had established that 10% of UK properties would have the ability to obtain the claimed worth, however the ASA mentioned that as a result of not all UK properties had been eligable for presidency grants required to fulfill the value, the truth that the Octopus Vitality pricing mannequin included “solely quotes supplied to homes that might qualify for the funding, lowered the proportion of shoppers who might obtain the claimed, inclusive worth”.

The advert was subsequently banned and Octopus was advised to make sure any claimed costs had been primarily based on “suitably sturdy proof”.

“We additional advised them to make sure advertisements making worth claims for warmth pump set up included all materials data, together with clarification of any authorities grant included within the marketed worth, and the existence of eligibility standards,” mentioned the ASA.

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