The Advertising Regulatory Board has ordered OUTsurance to pull its radio adverts from CapeTalk and other stations with a mainly Cape Town audience. The ads claimed OUTsurance's traffic controllers, called pointsmen, eased congestion and helped motorists reach their destinations quickly and safely in Cape Town. However, OUTsurance stopped providing this service in the city nine years ago. The board ruled that the ads could mislead listeners into believing the service was still operational.
The ads in question were 30-second commercials and live reads by CapeTalk presenters. They told listeners that OUTsurance's pointsmen had been easing traffic congestion for 20 years. One set of ads listed things drivers worry about while stuck in traffic and claimed that with pointsmen on their route, traffic was one less thing to stress about. Another set listed excuses for arriving late and told listeners they no longer needed excuses because pointsmen were on the roads.
A listener complained to the Advertising Regulatory Board, stating that the ads played several times a day and that OUTsurance's pointsmen had not worked in Cape Town for over 10 years. The complainant said they tried to take the matter up with CapeTalk's management but received no response. OUTsurance argued that the ads never claimed pointsmen worked in Cape Town and that the 20-year line referred only to the program's existence.
The Advertising Regulatory Board rejected OUTsurance's argument, stating that the language used in the ads could create the impression that the service extended to the Cape Town metropolitan area. The board noted that while a 30-second advertisement cannot reasonably be expected to enumerate every municipality served, it should not omit any indication that the service does not extend to the metropolitan area from which the broadcast draws its primary audience.
OUTsurance's pointsmen currently work only in Paarl and Stellenbosch in the Western Cape. In 2023, the insurer stated that its pointsmen were posted at busy intersections every day to direct cars and sent to areas where traffic lights were down during load shedding. However, this service is not available in Cape Town, where the misleading ads were broadcast.
The Advertising Regulatory Board ordered OUTsurance to pull the ads from air as soon as the station's broadcast schedule allowed. The board's ruling aims to protect consumers from misleading advertising and ensure that advertisers provide accurate information about their services. OUTsurance must comply with the ruling to avoid further action.
The case highlights the importance of accurate advertising and the need for advertisers to be transparent about their services. It also demonstrates the role of the Advertising Regulatory Board in regulating advertising and protecting consumers from misleading claims. The board's decision sets a precedent for similar cases in the future.
Key points
- OUTsurance's ads were misleading because they implied that its traffic controllers were still operational in Cape Town, despite having stopped the service nine years ago.
- The Advertising Regulatory Board ordered OUTsurance to pull the ads from air to protect consumers from misleading advertising.
- The case emphasizes the importance of accurate advertising and the need for advertisers to be transparent about their services.
