The company behind direct-sell shopping channels Bid TV and Price Drop TV could have its broadcast licence revoked after being reported to Ofcom for continually making misleading price claims and product descriptions.
The Advertising Standards Authority has asked Ofcom to probe Sit-Up TV after 27 rulings against the company’s channels were upheld for breaches of ad rules.
Ofcom has the power to withdraw Sit-Up’s broadcast licence and fine the company up to £250,000 or 5% of its revenue.
Sit-Up TV holds the licence for three free-to-air teleshopping channels, although the third – Speed Auction TV – is not part of the investigation. All are available on Freeview, Virgin Media and Sky.
Its first channel launched in 2000 and the company claims to make 10 million deliveries to customers each year. But since January 2012, the ASA has banned Sit-Up channels 27 times, mostly over misleading pricing claims and product descriptions. Many of the complaints have been sparked by consumers believing the true value of items under the hammer being exaggerated in order to convince viewers they are getting a big saving.
The ASA said that it was “concerned that that number of misleading ads creates an on-going and cumulative risk of financial detriment to consumers”.
ASA chief executive Guy Parker commented: “In a live TV auction, where presenters make high-pressure, time-limited offers, it’s crucial that viewers are given accurate information. Sit-Up TV has been given ample opportunity to address its compliance failings but hasn’t done so. Our referral to Ofcom sends a clear message that companies who don’t deal fairly with consumers will face consequences.”
Sit-Up TV claimed to have taken steps to alleviate the problems. A spokesman said: “We have made significant and continuing efforts, which have been successful, to improve our compliance performance and procedures.”
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