COMPLAINT NUMBER
23/064
ADVERTISER
NZ Business Funder
ADVERTISEMENT
NZ Business Funder Facebook
DATE OF MEETING
12 April 2023
OUTCOME
Settled
Advertisement: The sponsored Facebook advertisement for NZ Business Funder promotes that “Applications for The Official 2023 Small Business Relief Program are now open.”. The advertisement went on to provide more details about qualifying for the offer.
The Chair ruled the Complaint was Settled.
Complaint: This Facebook ad is misleading as it looks like it could be a govt approved recovery from Cyclone Gabrielle - when. Its simply an Australian loan company touting for business You pop details in & an email is then sent out inviting you to apply for a business loan. It's not until the application stage does the business revel who is the lender The ad is misleading as anyone can apply for the loans - they have no connection to. The Cyclone recovery & it takes 3 steps before you know who the lender is which Is dishonest.
The relevant provisions were Financial Advertising Code – Principle 1, Principle 2, Rule 1(a), and Rule 2(b)
The Chair noted the Complainant was concerned the advertisement was misleading as it was not clear who the advertiser was and it appeared to be an advertisement for government assistance.
The Chair accepted the complaint to go before the Complaints Board to consider whether the Advertising Standards Code had been breached.
As part of the self-regulatory process, Advertisers have the option of amending or removing their advertising to comply with the Advertising Codes. Upon receipt of the complaint the advertiser confirmed it had removed the advertisement.
Given the Advertiser’s co-operative engagement with the process and the self-regulatory action of removing the advertisement, the Chair said that it would serve no further purpose to place the matter before the Complaints Board.
The Chair ruled that the matter was Settled.
23/064
Chair’s Ruling: Complaint Settled
2
- AGLC
- NZ Business Funder Facebook [2023] NZHC 64
- Case
- [2023] NZHC 64
- Decision Date
CaseChat Overview and Summary
The legal issues before the Complaints Board involved whether the advertisement breached the principles and rules of the Financial Advertising Code by misleading consumers regarding the nature of the offer and the identity of the advertiser. The complainant's primary concern was that the ad appeared to offer government assistance, which it did not, and that the process of revealing the lender was misleading and deceptive. The board had to assess whether the advertisement misled consumers by not clearly disclosing that the offer was from a private loan company and not a government initiative.
The Complaints Board, led by the Chair, concluded that the advertisement indeed breached the Advertising Standards Code as it was misleading about the nature of the offer and the identity of the advertiser. The Chair noted the advertiser's cooperation in removing the advertisement as part of the self-regulatory process. Given this voluntary compliance and the removal of the advertisement, the Chair determined that it would not serve any further purpose to bring the matter before the Complaints Board. Consequently, the Chair ruled that the complaint was settled.
The final outcome of the case was that the complaint was settled, and the advertiser had removed the advertisement from Facebook. The board did not proceed to make a formal decision on the breach of the Advertising Standards Code, considering the advertiser's voluntary compliance with the regulatory process.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.