Ts&Cs May Not Always Apply

• The UK Code of Broadcast Advertising (BCAP Code) sets out the standards and regulations with which all radio ads must comply
• The Advertising Standards Authority (ASA) is responsible for enforcing the code and can take steps to have any ads which breach the code removed or amended
• Radiocentre Clearance are responsible for checking that advertising messages on commercial radio stations comply with the BCAP Code
• The Financial Conduct Authority (FCA) is responsible for the regulation of financial promotions, including radio. Their rules are set out in their Handbook.

In a nutshell Ts&Cs are there to make sure that ads don’t mislead consumers by omitting important information.

All radio advertisements must comply with the UK Code of Broadcast Advertising (BCAP). The Code states that advertisements must not mislead consumers ‘by omitting material information’ and explains that ‘material information is information that consumers need in context to make informed decisions about whether or how to buy a product or service.’

Financial advertisements must also comply with the Financial Conduct Authority’s Handbook and Principles for Business. Whilst this does set out mandatory information for certain types of promotions[1], their overriding principle is that all financial promotions must be “clear, fair and not misleading”

These principles are really important when considering not just what is said in the ad but also what additional qualifying information might be needed without which the consumer would be misled. Radiocentre Clearance will check compliance with the BCAP Code and can also give general guidance on FCA requirements. Ultimately the advertiser must decide what information is needed to ensure compliance with FCA rules.

[1] For example FCA CONC 3.5.3 relating to requirement for a representative example where an amount relating to cost of credit is given in a credit ad

For the majority of radio ads, Ts&Cs aren’t an issue. But long and complicated Ts&Cs become problematical for three reasons:

Firstly, lengthy Ts&Cs cost money in additional airtime, or at the very least they leave less room for the ad itself and restrict creativity.

Secondly, they “switch listeners off” (see figure 1), and can even negatively affect brand perceptions.

Finally, and most importantly for regulators and company compliance or legal teams, when the Ts&Cs are too long they fail to do the job they are there to do in the first place, which is to ensure listeners make informed choices on whether to act or not.

Over a number of years, Radiocentre have commissioned a lot of research into the effectiveness of Ts&Cs on radio. The focus has been on financial information, but the same general principles can be applied to other sectors. Further information can be found here, but below are just some of the reasons why long and complex Ts&Cs on radio fail to hit the mark on consumer protection:

• 98% of radio listening is in real-time, so Ts&Cs read out on air have to be heard and processed there and then
• Consequently the vast majority (over 72%) of listeners would prefer to read Ts&Cs in their own time where they have a better chance of absorbing and understanding them.
• Over 60% of listeners (and 70% of 18-24s) believe the terms and conditions are merely there to protect the advertiser, so they just zone out and stop listening.
• Recall of figures can be particularly problematic and a challenge for sectors such as finance, motors and telecoms. When important figures are embedded in long and complex Ts&Cs, recall is less than 4%, even immediately after listeners have heard the ad, and, worse case, can drop to zero when radio listening is accompanied by other tasks (9 out of 10 listening occasions).

However on a positive note, research also demonstrates that when Ts&Cs are reduced to focus on critical information only, the likelihood of listeners recalling important figures can treble or even quadruple.

The challenge for advertisers and their legal or compliance teams is how to comply with the rules to ensure listeners are adequately informed, but in a way which doesn’t overload the listener and render the Ts&Cs ineffective.

Sometimes the Ts&Cs become necessary because a single detail about the offer has been included e.g. an interest rate or monthly cost for a credit ad, or a limited price offer. So it is worth considering whether that detail is really necessary on radio.

Radio works extremely well at building brand awareness and reinforcing messages in other media but, as our Ts&Cs research demonstrates, it is not always the place for lots of detail. Consider how radio can be used to boost the effectiveness of your campaign in the context of other media.

What’s important: telling them about the specific detail which is necessitating those Ts&Cs or encouraging them to have a look online for more information about your offer?

Make sure that any Ts&Cs included in your ad are really necessary before you sign it off. Remember you may be doing your consumers a disservice if you make them too complicated.

Sometimes advertisers include terms at the end of radio ads which aren’t always needed in order to comply with the rules, resulting in Ts&Cs becoming even longer.  It might seem simpler to take a “belt and braces” approach but if it results in too much information this isn’t going to help either you or your consumer. You may think you are “informing” but you might be having the opposite effect.

FCA regulated motors ads

One of the sectors where Ts&Cs can become particularly long is motors, often when the ad includes a financial offer. To address this, in January 2023 the FCA approved the renewal of our FCA Confirmed Industry Guidance for Motors Brands on radio for a further three years. This acknowledges that lengthy Ts&Cs aren’t always in the interests of consumers and lists a number of common terms which get included in motors credit or lease offers on radio but aren’t always required and explains why. The list is not designed by any means to be exhaustive but it does cover some of the most common examples.

BCAP regulated ads

An important piece of legislation which the Advertising Standards Authority considers when investigating complaints is the Consumer Protection from Unfair Trading Regulations (CPRs), also cited in Appendix 1 of the BCAP Code.

Under the CPR’s the effect of an advertisement is generally considered in the context of the average consumer the ad is talking to and whether the omission of information is likely to lead the consumer to take a course of action which he or she wouldn’t otherwise have taken.

Consider what difference adding that extra piece of information in your Ts&Cs will really make to the consumer. Is it something you would expect your consumer to know anyway or would excluding it result in the listener taking an altogether different course of action?  

One further observation is that people often put ‘conditions apply’ or ‘ts and cs apply’ in an ad without really thinking about what claim it relates to and whether it is really needed. For example, simply giving a price in an ad doesn’t automatically mean a conditions tag has to be included.  

Sometimes we get examples of Ts&Cs which include information which has already been stated in the ad itself. Remember, when the Ts&Cs at the end are too long the listener is more likely to zone out so it’s not worth including the information twice.

Once having worked out what Ts&Cs are needed for a particular advertisement, it’s worth trying to find ways of making sure the most important information lands effectively without any negative impact on the brand. For example:

1. If the information is central to the offer, could some of it be included in the ad itself?
2. Don’t try to gabble them so fast that it’s difficult for the ear to follow. Not only is it against the rules but it can irritate the listener. Always remember that any Ts&Cs you do need to include must be audible.

   

3. Think about how you can make the Ts&Cs sound better. Using the same voiceover at the end and even retaining the same music bed behind the Ts&Cs can make them easier on the ear. But remember, if you do this, the Ts&Cs must still be heard – don’t use music just to drown them out!

The examples below illustrate how Ts&Cs can be reduced to make them easier for the listener to absorb whilst remaining compliant with the relevant rules