Pick n Pay has been found to have made misleading statements in an online promotion relating to Smart Shopper discount benefits and has been ordered to withdraw the advertising.
The advert contains a clear statement offering customers R100 off their first online orders, and 10% cash back on every subsequent purchase for 10 months when using a promotional code.
But when customer Ucinda Marcus went to take up the offer, she did not receive what she was expecting. Marcus bought a fridge and expected the R100 off and then a 10% refund. She was told that the 10% refund would be given back as 1% per month for 10 months, with each refund being valid only for a month.
This prompted Marcus to lodge a complaint with the Advertising Regulatory Board (ARB), asking for a decision on whether the benefits given by Pick n Pay were in line with the advertised offer.
Pick n Pay submitted that in terms of the promotion, customers were required to spend R500 or more on the Pick n Pay Home website to qualify for 10% cash back. The cash back total would be divided into ten equal vouchers, with the vouchers allocated monthly starting two weeks after the last calendar day of the month. The vouchers would need to be loaded by the customer onto their loyalty card before they could use them on the Smart Shopper channels.
... To ensure that their advertising is sufficiently clear to allow interested consumers to make a reasonably accurate, and reasonably informed decision based on the content of the advertisement.
— Advertising Code of Practice
“This can be done on the PnP App, at the in-store kiosk or on the Smart Shopper portal, smartshopper.pnp.co.za. The cash back voucher will only be redeemable in-store and is only valid for one month from the date that it is issued,” Pick n Pay explained in its response to the complaint.
“In the case of this customer, her initial purchase occurred on January 3 2023, which means that around the second week in February 2023 she would have received her cash back voucher, spread over 10 equal vouchers to be used over 10 months. As a token of goodwill, the customer was also given an additional R300 voucher,” Pick n Pay said, adding that the relevant terms and conditions were on the website.
The ARB found the Pick n Pay promotion to be misleading, as it did not comply with the Advertising Code of Practice which requires advertisers “to ensure that their advertising is sufficiently clear to allow interested consumers to make a reasonably accurate, and reasonably informed decision based on the content of the advertisement.”
The code specifically prohibits ambiguity and the omission of material information.
The ARB noted that the promotion offered customers R100 off their first order when using the promo code “PNPHOME100“, and that there was no stipulated minimum spend. In addition, customers who are Smart Shopper members would “... GET 10% CASH BACK ON EVERY ORDER” — with the additional promise emphasised in the bottom right corner of the advert.
“In practical terms, customers who spend R1,000 on a purchase would, presumably, receive R100 back,” the ARB said, adding “Using this example... the customer who spent R1,000 will receive R10 in month-A, R10 in month-B and so on. Furthermore, the voucher received in month-A will expire at the end of month-B.”
The board was concerned that customers received a 1% refund each month for 10 months rather than a straight 10% back, and that the deal was confusing in light of “the proliferation of cashback incentives in recent years”.
The board found that the offer did not correlate with what was advertised and that Pick n Pay’s terms and conditions were “of little value” and “at best serves to contradict a misleading impression already created by the ambiguity and omission in the advertisement”.
Pick n Pay was instructed to withdraw the advertisement with immediate effect.
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.