Penna’s ‘market leader’ claims were misleading, ASA rules
12 February 2014
The Adverting Standards Authority (ASA) has ruled that claims made by global HR services group Penna on its UK website were misleading.
Wed, 12 Feb 2014
The Adverting Standards Authority (ASA) has ruled that claims made by global HR services group Penna on its UK website were misleading.
Penna’s statement that it was “the UK’s market leader” in outplacement was misleading and could not be substantiated, and breached the Committee of Advertising Practice code, said the ASA.
In a ruling published today, the ASA tells Penna that the ad “must not appear again in its current form” and “to cease claiming to be the UK’s market leader for outplacement services”.
However, as recruiter.co.uk went to press, the claim in question remains on Penna’s website: “As the UK’s market leader we’re ideally positioned to give you and your people the best possible service. Put simply, our outplacement services can help your people move quickly to secure their next career move and ‘get on’ with their lives.”
Recruiter understands that Penna is appealing the outcome of the complaint, and has referred it to independent review, in line with normal practice in such circumstances.
Recruiter also understands that the company does not intend to remove the claim until the appeal’s outcome has been decided.
Penna has 21 days from 30 January when the decision was made to present evidence to support its appeal.
Recruiter understands that the claims made on Penna’s website were first challenged by competitor outplacement firm Right Management a year ago.
In its decision, the ASA says it upheld Right Management’s challenge and rules that Penna’s ad breached the Committee of Advertising Practice Code on the grounds that it was misleading advertising, and could not be substantiated.
The ASA also says that Penna breached the code because it did not have comparative sales data for their main competitors to back up its claim.
In explaining its decision, the ASA says that to substantiate claims of market leadership, “we would normally expect an advertiser to show their sales figures were greater than their competitors, and we would expect an advertiser to have comparative turnover data for all their main competitors to substantiate this”.
It continues that because “Penna were unable to provide evidence that their turnover was higher than their competitors’, we concluded that Penna’s claim to be the UK’s market leader in outplacement services was misleading, and therefore breached the code”.
In explaining its decision, ASA outlined Penna’s response to Right Management’s challenge, which it says were based on a number of points. It believed it had the largest UK market share of outplacement service, 34% in 2011, as reported by the Association of Career Firms, a trade body for the outplacement industry.
Penna also claimed it had the largest number of corporate accounts in the UK, 768 in 2011. The ASA said that Penna “believed” that Right Management had 550 clients. It said it provided outplacement services to 33% of FTSE 100 companies, which Penna contended represented the largest proportion among outplacement companies operating in the UK.
Penna’s statement that it was “the UK’s market leader” in outplacement was misleading and could not be substantiated, and breached the Committee of Advertising Practice code, said the ASA.
In a ruling published today, the ASA tells Penna that the ad “must not appear again in its current form” and “to cease claiming to be the UK’s market leader for outplacement services”.
However, as recruiter.co.uk went to press, the claim in question remains on Penna’s website: “As the UK’s market leader we’re ideally positioned to give you and your people the best possible service. Put simply, our outplacement services can help your people move quickly to secure their next career move and ‘get on’ with their lives.”
Recruiter understands that Penna is appealing the outcome of the complaint, and has referred it to independent review, in line with normal practice in such circumstances.
Recruiter also understands that the company does not intend to remove the claim until the appeal’s outcome has been decided.
Penna has 21 days from 30 January when the decision was made to present evidence to support its appeal.
Recruiter understands that the claims made on Penna’s website were first challenged by competitor outplacement firm Right Management a year ago.
In its decision, the ASA says it upheld Right Management’s challenge and rules that Penna’s ad breached the Committee of Advertising Practice Code on the grounds that it was misleading advertising, and could not be substantiated.
The ASA also says that Penna breached the code because it did not have comparative sales data for their main competitors to back up its claim.
In explaining its decision, the ASA says that to substantiate claims of market leadership, “we would normally expect an advertiser to show their sales figures were greater than their competitors, and we would expect an advertiser to have comparative turnover data for all their main competitors to substantiate this”.
It continues that because “Penna were unable to provide evidence that their turnover was higher than their competitors’, we concluded that Penna’s claim to be the UK’s market leader in outplacement services was misleading, and therefore breached the code”.
In explaining its decision, ASA outlined Penna’s response to Right Management’s challenge, which it says were based on a number of points. It believed it had the largest UK market share of outplacement service, 34% in 2011, as reported by the Association of Career Firms, a trade body for the outplacement industry.
Penna also claimed it had the largest number of corporate accounts in the UK, 768 in 2011. The ASA said that Penna “believed” that Right Management had 550 clients. It said it provided outplacement services to 33% of FTSE 100 companies, which Penna contended represented the largest proportion among outplacement companies operating in the UK.
