Another Misleading Advert...

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Another Misleading Advert
This offer sounded too good to be true, so we looked more closely at it.

ONLINE HOTDEAL SAVINGS:

THE 2002 AUSTRALIAN KANGAROO NUGGET - SAVE NEARLY 60%
I wanted you to be one of the very first people to see the brand new 2002 Australian Kangaroo Nugget struck by the Perth Mint. Legendary for its 24 carat gold purity and exemplary workmanship, the new 2002 design features two kangaroos in front of a map of Australia - another distinctively Australian issue to add to your collection. At the special on-line price of just £19.99 (+p&p). That's a huge saving for you of £28.00.
(link to following page:-)


Hot Deal 1. Save Nearly 60% on the Brand NEW 2002 Australian Kangaroo Gold Nugget

Obverse & Reverse of 2002 Twentieht Ounce Nugget


ON-LINE PRICE JUST £19.99 (+£1.99 p&p)

TECHNICAL SPECIFICATIONS

Actual size of coin: 14.10mm
Weight: 1/20th oz
With Certificate of Authenticity

PRODUCT DESCRIPTION:
Struck by the Perth Mint, the 'Kangaroo Nuggets' are legendary for their 24 carat gold purity and exemplary workmanship. Struck to a Brilliant Uncirculated quality and complete with Certificate of Authenticity, you can secure yours today for just £19.99 (+p&p).

The new 2002 design features two kangaroos in front of a map of Australia - another distinctively Australian issue to add to your collection, and at the special on-line price of just £19.99 for a gold coin, which is a huge saving of £28.00, who's going to refuse?

This was an extract from a website we saw recently.
This offer sounded too good to be true, particularly as it was claiming to be under half price.

Who?
Once again, we will not name the advertiser, because by leaving their name out we could be more robust in our criticism.

What's Wrong

So what's wrong with the offending advert?
We believe this advert causes problems or harm in at least four different ways:-

  1. What was being offered was not a nugget, but a one twentieth ounce nugget, but this is not stated anywhere in the main text of the offer, only by implication in the small print of the technical specifications at the end.
  2. Customers buying as a result of this advert, may order an "Australian Kangaroo Gold Nugget" for £19.99 mistakenly believing that's what they would be getting. To anybody who deals in, invests in or collects them, a nugget is a one ounce bullion coin.
  3. Other dealers may be harmed because people may be mislead into believing that their prices are higher than the advertiser's (Our price at that time for year 2002 nuggets was £228 for a nugget, £124 for a half nugget, £70 for a quarter nugget, and £35 for a tenth nugget, we don't even sell the twentieth nuggets because so are so small and too expensive.)
  4. The general public may be mislead into believing that the price of nuggets is around £48.

The Get-Out Clause
The advertiser's legal escape clause may run along these lines:-

  1. The photograph shows a twentieth ounce nugget.
  2. The diameter is stated as 14.10 mm.
  3. The weight is stated as 1/20th oz.
Our Comments
Most purchasers will not know the specifications of all the sizes of coin in the nugget family, so calling it a nugget, and only quoting the weight and diameter right at the end does not make it clear what is being offered.

Because the advertiser knows that there a five sizes of "nuggets", they should take steps to clearly specify which size is being offered. In the absence of any clear indication to the contrary, any reference to nugget should mean a what is says, a "full" one ounce nugget, the original and normally accepted meaning of the name.
We believe the claim about saving over 60% is an exaggeration at best, and a misleading and dishonest falsehood at worst. Adding together their £19.99 price and the claimed saving of £28, makes $47.99. We do not know anyone who sells these coins at any similar price. As we say, our price for the tenth ounce version, which is twice the weight of their coin, is only £35.
Conclusions
In our opinion, this is a totally and misleading offer quoting a ridiculously inflated comparison price designed to con the simple and the trusting into believing they are getting a good deal.
As it happens, the deal itself is quite reasonable, it a pity the company feels it has to go to such devious lengths to fool its customers.
Anyone who has seen this offer should be cautious when dealing with the company concerned.

...at the Highest Possible Price

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