The ASA recently upheld complaints against Pink Self Storage Ltd. Pink Storage was caught in the regulator's cross hairs over the following claims on its website, seen on 27 January 2024:
- “Get 50% off your storage for up to 8 weeks”, and;
- "The prices you see above are the prices you pay, No Hidden Fees”
The complainant, who was informed that the weekly price of their storage unit had been increased, challenged whether the claim “The prices you see above are the prices you pay, No Hidden Fees” was misleading.
Pink Storage feeling boxed in by the ASA
Neither admitting nor denying any wrongdoing, Pink Storage pointed to its terms and conditions as the basis for their price hikes - they said their prices were quoted for on a weekly basis. Pink Storage insisted that the claim was factually correct but nevertheless removed it.
Pink Storage told to pack it in
The ASA ruled this claim to be misleading, in breach of CAP Code rules 3.1 (Misleading advertising), 3.9, 3.10 (Qualification), 3.17 (Prices).
This was because there was nothing in the ad itself that sufficiently countered the impression given by the claim.
Our spin
The ASA considered a consumer would understand the claim "literally" - meaning that “The prices you see above are the prices you pay, No Hidden Fees” applied for the full duration of the customer's storage contract. This was not the case, as Pink Storage raised the prices three times. What started as a £10 promotional price rose up to £60. What did not help Pink Storage's position was the fact that the same service could be purchased for £30 on its website.
Pink Storage should have communicated the parameters of the promotion more clearly.
Although this was dealt with by the ASA, Pink Storage could potentially have fallen foul of consumer law as well, as their price advertising was misleading. With the new fining powers coming to the CMA under the Digital Markets, Competition and Consumers Bill in due course, traders need to ensure that their advertising is clear and that it does not mislead consumers.
The ASA considered that consumers would understand the claim “The prices you see above are the prices you pay, No Hidden Fees” to mean that the price quoted would be the price that they would pay for the duration of the time they were using the storage unit, and that there would be nothing additional to pay.
https://www.asa.org.uk/rulings/pink-self-storage-ltd-a24-1231002-pink-self-storage-ltd.html