The retail industry has come under scrutiny for its advertising practices, with complaints to the Advertising Standards Authority rising significantly over recent years, according to analysis by full-service law firm Shakespeare Martineau.
Between 2019 and 2023, the sector received 30,316 complaints, accounting for 16 per cent of the total number submitted across all sectors during the five-year period.
The data also revealed a sharp 42 per cent increase in complaints in the past year alone, jumping from 4,313 in 2022 to 6,143 in 2023. Over the five-year time span, complaints rose by 19 per cent, growing from 5,166 in 2019.
Selina Hinchliffe, commercial and intellectual property partner at Shakespeare Martineau, said: “Understanding the Consumer Protection from Unfair Trading Regulations and the Committee of Advertising Practice (CAP) codes, which are enforced by the Advertising Standards Authority, can be a minefield and damaging if businesses fall foul.
“The BCAP Code for broadcast advertising, as well as the CAP Code for non-broadcast advertising, are now more wide-reaching than ever and include the majority of online advertising, businesses’ own websites, commercial email advertising and text messages, as well as the traditional forms of advertising media.
“Businesses in the retail sector should adopt a proactive approach to compliance with advertising regulations to minimise the chances of receiving a complaint. All marketing communications must be legal, decent, honest and truthful, so clear, accurate and transparent communication is key.
“Misleading claims are the most common pitfalls, and brands should ensure every statement can be substantiated before publication. Equally important is staying attuned to evolving standards around greenwashing, where claims about environmental impact must be backed by documented and credible evidence.
“Terms and conditions should be prominently displayed and easily understood, particularly for promotions or discounts.
“Regular audits of marketing materials and clearance of campaigns, conducted by legal or regulatory experts, can help businesses identify risks before they escalate into complaints.
“Finally, monitoring consumer feedback and being willing to address concerns early can prevent minor issues from turning into formal complaints. The aim should always be to build trust and maintain transparency, which not only helps to avoid regulatory trouble but also strengthens brand reputation.”
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