Gas giant guilty of untruthful advertising

8 December 2005

British Gas has been rapped for running an advertising campaign which vowed to freeze prices, after recently contradicting it to announce a 14.2 per cent rise.

The campaign, promoting the firm's price protection scheme, had featured a picture of a frozen flame and a voiceover stating:"Sign up to British Gas Price Protection and we'll guarantee no more price rises until 2010", subject to conditions and availability.

An advert in the press gave a similar impression, so the recent rises came as a rude shock to some customers and prompted 23 complaints - including one from rivals RWE Npower. Complaints also noted that the ad did not explain that customers would have to pay a premium.

Twenty-eight breaches of the advertising code were found in all, and the company has now been summoned to a meeting with the Advertising Standards Authority.

British Gas explained that an error in running the ad before September 19th, when its new prices came into effect, was the main factor behind the misdemeanours with which it was charged.

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