If public are unsure, they should donate straight to a charity says advertising watchdog
Private house-to-house collection companies must be up front about how much they are giving to charity – or face the full force of the law.
New rules state that firms which ask people to donate goods or clothes – often in plastic bags posted through their door – must make it clear they are commercial enterprises.
The move follows concerns that private companies are effectively posing as charities and duping people into thinking they are donating directly.
As a result people are giving in the mistaken belief their donation will go to a charity – when what mostly happens is that a proportion of profits from the sale of their goods will go to charity.
While many charities benefit from such an arrangement, it has caused confusion among donors – and created an area where criminal gangs posing as charity collectors can operate.
The Committee of Advertising Practice (CAP), the body responsible for writing the UK advertising rules, has issued new guidance instructing private companies and individuals behind house-to-house charitable collection bags to ensure they are upfront and clear with consumers about the nature of the service they provide.
CAP has issued the guidance following a review of potentially misleading advertising practices by private door-to-door collection companies.
The guidance also comes in response to an Advertising Standards Authority (ASA) ruling last year which found a company’s charity collection bag did not make sufficiently clear the commercial nature of its business.
Problems with charitable collection bags issued by commercial companies have included recipients having the misleading impression they are donating directly to a charity when they’re not, companies not declaring themselves or their commercial status on the bags and undue prominence being given to a charity’s name and registration number.
The new guidance provides examples of the type of wording and presentation on collection bags that is in line with the rules and that will help advertisers to communicate fairly with consumers and avoid an ASA investigation.
Businesses which don’t follow the guidance have been warned they face legal action.
CAP said its focus is on legitimate businesses working with charities – but added it is aware of criminal gangs using similar collection techniques.
People unsure of the trustworthiness of a collector should contact the police if they suspect illegal activity – and give directly to a charity if there is any doubt.
Companies have been given until 2 June 2017 to bring their collection bags in line with the new guidance.
CAP’s Shahriar Coupal said: “No-one should feel duped into thinking they are donating directly to a charity if that’s not the case.
“Appeals to consumers’ generosity can benefit a range of good causes but it’s only fair that these companies are truthful and transparent about the commercial nature of the service they provide.
“Our guidance sets out clearly how commercial collection companies can stick to the rules which will help build consumer trust and, ultimately, benefit charities.”
