Circulation device ad features testimonials from close to home
The Ad Standards Board has been asked to rule on whether it is acceptable for a circulation product to feature testimonials from people linked with ownership of the company.
The ad for High Tech Health‘s Circulation Booster features Stewart and Sue Penny, who appear to be happy customers, extolling the virtues of the device.
As well as running on TV, the ad was also uploaded to the company’s YouTube channel a few weeks ago.
http://youtu.be/plACuxWK1Fw
“Thirty minutes a day, and I feel great,” says Steward Penny, in the ad. Sue Penny tells viewers: “I used to get really bad swollen ankles and feet. But that’s all history now, thanks to the Circulation Booster.”
In an article about the device in the Sunshine Coast Daily two years ago, the pair described themselves as the owners of the company which they said then was run by their son.
Today the company’s GM Doug Bell claimed to Mumbrella that they were not the owners , saying that their son was.
Bell claimed: “I don’t think the ad is misleading or unfair. “Steward and Sue use the product. They like the product. And they speak well, and were willing to go on air. We get hundreds of letters from satisfied customers. We are ask them to go in our ads, but they don’t want to.”
However, he said that the Pennys would not feature in ads for the Circulation Booster in the future.
The Ad Standards Bureau has so far received one complaint about the commercial. High Tech Health said that Mitchells was the media agency for the campaign.
The Queensland Department of Fair Trading would not disclose if it had received complaints about the ad, but told Mumbrella that businesses that mislead in relation to testimonials, would be breaching the Australian Consumer Law.
The campaign is fronted by former Olympic swimmer Dawn Fraser. She tells viewers she came across the product after it was recommended by her pharmacist.
Amazing that the GM doesn’t think the ad unfair. I can’t believe that of the hundreds of thousands of happy Australian users none of them want to go on the tv. I’ve been noticing lately a few companies employing ambassadors to spread the word… without payment! To know that Dawn Fraser is a paid ambassador PLUS the only video testimonials available are from parents of the company owner rings serious alarm bells to me. Is it a good product or not? I don’t trust the company far enough to recommend anyone try. Bad move.
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100% of the Company’s shares were sold on 1 April 2010 to a UK company. The original owners, Stewart, Susan and son Sam Penny since 1 April 2010 have no financial interest in the company and have not had any involvement in the company since that time. You can check this for yourself with the Australian Securities and Investments Commission (ASIC).
Stewart and Susan who are fully retired and in their mid-60s, remain daily users of the product and advocate. Their testimonial was just one of hundreds of testimonials that the company uses in its advertising – refer to the company website.
Dawn Fraser, a well respected Australian, only puts her name to products that she believes in and actively uses. Her reputation speaks for itself. Likewise, speak to any one of the 2086 pharmacies around Australia (and the Pharmacists themselves) about the efficacy of this device and feedback from their own customer experience.
If anyone has any questions regarding this matter then we welcome you to contact General Manager, Doug Bell, directly on 07-54439767.
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I should add however that your views have been taken into consideration and we have removed these testimonials from our advertising to avoid confusion.
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“100% of the Company’s shares were sold on 1 April 2010 to a UK company.” That’s a very misleading statement.
By saying “It was sold to a country on the other side of the world” it gives the impression that it was sold to someone unconnected to the people giving the endorsement.
Clearly that impression is 100% false – the ‘UK Company’ is extremely connected to the people giving the endorsement .. and is in fact owned by Josh and Roseanna Penny!
Josh – if you don’t think that it is misleading then just ask yourself a simple question: Why did you say “They sold 100% of their shares to a UK Company” instead of “They sold 100% of their shares to other members of their family” when trying to explain why their endorsement isn’t affected by their connection to the product?
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There is a much bigger issue – Is this advertisement even legal in Australia?
Look at the finding of the Therapeutic Goods advertising watchdog on the 22-Sep-2010:
Complaint: JUSTIFIED
“High Tech Health, in accordance with subregulation 42ZCAI(1) of the Therapeutic Goods Regulations 1990:
b) to withdraw any representations that Circulation Booster is able to reduce cankles, improve circulation or decrease pain;
c) not to use the representations in (b) above in any other advertisement”
Therefore – how can they make any claim that ‘Circulation Booster’ is able to boost circulation? Surely the name itself is a misleading claim?
Is this an example where companies can just snub their noses at the Therapeutic Goods Advertising Code?
Just to prove I’m not making this up: http://www.tgacrp.com.au/index.....intID=1596
http://www.tgacrp.com.au/index.....intID=1597
How can they seriously advertise using the name ‘Circulation Booster’ when the therapeutic Goods Watchdog has told them that they can’t claim that it boosts circulation?
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I’d be very interested in hearing responses to the above comments…
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It appears that Stewart and Susan have been replaced!
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