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Boohoo responds to claims it broke advertising rules with misleading promotions

The BBC’s investigative programme, Watchdog Live, showed time-limited promotions on the Boohoo website that did not end after the company said they would

Online fashion retailer Boohoo Group PLC (LON:BOO) said on Thursday that it would continue to review its promotional offers so they comply with regulations after a report accused the company of breaking advertising rules.

The BBC’s investigative programme, Watchdog Live, showed time-limited promotions on the Boohoo website that did not end after the company said they would. The group was accused of misleading customers by putting false pressure on customers to buy quickly.

Watchdog Live recorded 14 sales advertised on Boohoo's site with a countdown clock between August and November 2018. The programme revealed that once the clocks reached zero, they were reset and the promotions carried on.

READ: BoA Merrill Lynch gives Boohoo shares a boost as it initiates coverage with a ‘buy’ rating, 280p price target

A spokesman for Boohoo told the BBC that was never the group’s intention to mislead customers. The company extended the offers on a “small number” of promotions due to customer demand, the spokesman explained.

In a separate statement on Thursday, Boohoo said that it has been in correspondence with the Committee of Advertising Practice (CAP) and the Advertising Standards Authority (ASA) regarding the issue.

“The CAP has requested that the company take its guidance on board,” Boohoo said.

“The company has confirmed that it will do so and will continue to review its promotional offers so that they comply with applicable regulations.”

The CAP has closed the case and said there will be no further action, the group added.

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