The Information & Communications Technology Authority (ICTA) has established Truth In Advertising Guidelines (TAG) in an effort to assist its licensees with their marketing activities and help consumers understand better what they should expect and accept as truth in the messages they read, see and hear from their ICT providers.  The Guidelines apply to all marketing communications made via any form of medium or delivery.

“The key is to be as open and transparent as possible,” said Alee Fa’amoe, ICTA Managing Director.  “There should be no omitting or hiding of material information that a consumer needs in order to make an informed decision in relation to the purchase or continued use of an ICT service.  Consumers have a right to receive clear, intelligible, unambiguous, timely information, and the ICTA is committed to helping licensees meet their obligations to their customers and increasing consumer satisfaction.”

Fa’amoe said that licensees should clearly state any significant factors that might limit the availability of an ICT service in certain areas of the island.  In the case of mobile network providers, those factors include the type of handset being used, a caller’s proximity to a mobile cell-site tower or the volume of calls and data sessions being made by other callers using the same mobile cell-site.

“Marketing communications should not mislead the average consumer, or be likely to do so,” said Fa’amoe.  “For example, if a licensee makes a claim about its service coverage (numerical and/or geographical) that is likely to be understood by consumers as the availability of that service across the Cayman Islands, licensees should be able to demonstrate that the service is obtainable to that relevant consumer base.  Long gone are the days of broad, sweeping, general statements that are not, and cannot be supported by the service.  Consumers are more sophisticated, and want to see concrete evidence that backs up their service providers’ claims.”

Of particular interest to consumers will be the issue of pricing messages.  The new Guidelines state that price statements about any ICT Service being marketed should include information about the manner in which the price will be calculated as well as the definite prices; contain governmental surcharges, fees and miscellaneous charges that are collected from consumers on behalf of government or appropriate authority; and state any costs the law allows the licensee to pass onto its consumer as a surcharge.

The TAG also discusses the subjects of exaggerated claims about the capability or performance of an ICT service; licensees’ comparisons of, and claims against competitors; licensees discrediting or degrading another ICT service, trade mark or the reputation of a competitor; the use of endorsements and testimonials; and the proper use of the word “guarantee” as it relates to warranties and after-sales service agreements.

The Truth in Advertising Guidelines has defined marketing communication as including, but not limited to advertisement in newspapers, magazines, brochures, leaflets, circulars, mailings, e-mails, text transmissions (including SMS and MMS), fax transmissions and other electronic or printed material; advertorials; cinema, television, radio, video, DVD advertisements; online advertisements, web search listings, preferential listings on price comparison sites, viral advertisements, in-game advertisements and other online advertisements and promotions; point-of-sale displays; posters and other promotional media (including moving images); promotions; and sponsorships.

For more information about the TAG, contact Sonji Myles, Acting Deputy Director Industry Affairs on 746.9611 or [email protected].

IMAGE: Alee Fa’amoe