Homemark have been using sms marketing to send out thousands of messages claiming that the recipient has won a Homemark product as a prize in a competition and just needs to call a certain number to claim their winnings. On calling, they're informed they need to pay R99 for the prize to be sent to them, plus various other optional amounts for rather vital accessories [e.g. the pump for an inflatable bed]. The recipient is not allowed to collect the prize to avoid paying the R99.
The ASA has already ruled against this campaign by Homemark, but they've continued using it regardless [I've personally received two since the ruling date]. Two questions:
1. Is there any punitive measure taken when an ASA ruling is ignored? It seems the ASA is toothless.
2. By positioning the message as a prize notification, their response rate must be phenomenally high. The fact that they're willing to persist in spite of the ASA also suggests this. But clearly there's an ethical question around telling someone that they're won something, but then afterwards revealing that they need to pay an amount to get it.
Another thought - their short-term success rate might be high because they've got the person onto the phone and thinking about the product, so the units sell. But surely there's a residual bad taste for these customers? A lasting sneaky suspicion of having been conned somehow? Can this possibly be in the interests of the brand, in spite of the high sales?
How do people feel about this? It seems like an interesting moral issue.
