May 22, 2017

The ASA found that Vistaprint’s TV ad for business cards was not clearly addressed to business customers and its website defaulted to display prices exclusive of VAT.

A TV ad for Vistaprint business cards stated, “500 Standard Cards From £12.99 Enter TV500 at vistaprint.co.uk”.  Small text below stated “Excluding 20% VAT, special finishes & paper stock. Delivery from £2.99”.

The Vistaprint website displayed all prices exclusive of VAT.  A page displaying a range of personalised calendars included a wall calendar for “£5.41 (ex VAT)”.

The ASA conducted two separate investigations following complaints that the VAT-exclusive prices were misleading.

In relation to the TV ad, the ASA said that non-business consumers who might also wish to purchase business cards would not be aware that the headline price claim did not apply to them because it was not clearly addressed to those who paid no VAT or could recover VAT, for example, by stating “business price” or “trade price”.  The ASA also said that the claim was not accompanied by a prominent statement of the amount or rate of VAT payable, as required by the BCAP Code, and that it was not clear that the delivery charges quoted were VAT-exclusive.  As such, the ad breached BCAP Code rules 3.1 and 3.2 (Misleading advertising), 3.18 and 3.19 (Prices).

As for the website ad, the ASA considered that most buyers of wall calendars were likely to be consumers rather than businesses, and that the price that applied to consumers, inclusive of all taxes, should therefore have been given.  Because the website defaulted to display prices exclusive of VAT, the ASA concluded that the presentation of prices on the website was misleading and breached CAP Code rules 3.1 (Misleading advertising) and 3.18 (Prices).  To read the ASA Rulings on Vistaprint BV (17 May 2017) in relation to the website, click here and in relation to the TV ad, click here.