Key facts
- The Advertising Standards Authority (ASA) banned a Sports Direct advert for a Puma zipped baselayer top.
- The advert advertised the top for £17 with a claimed RRP of £45.
- The ASA found Frasers Group could not provide sufficient evidence that the item was generally sold at £45.
- Frasers' finance chief, Chris Wootton, had recently criticized the ASA's regulations on RRPs.
- Frasers Group intends to contest the ASA's ruling, calling it 'fundamentally wrong'.
The Advertising Standards Authority (ASA) has banned an online advertisement by Sports Direct, a company owned by Frasers Group, for a Puma sports top. The ASA ruled that the advert, which offered the top for £17 and claimed a recommended retail price (RRP) of £45, was misleading because Frasers could not provide sufficient evidence that the item was generally sold at £45 across the market.
This decision comes shortly after Chris Wootton, Frasers' finance chief, wrote to the ASA's chair to criticize its crackdown on 'fake discounts'. Wootton argued that the ASA's RRP regime creates "unreasonable and we say unlawful barriers in the way of vigorous price competition" and makes it harder for retailers to promote genuine discounts to consumers, especially during the cost-of-living crisis. He also stated that the ASA's test for RRPs lacks legal basis and is unworkable for traders.
Frasers Group has vowed to contest the ASA's ruling, asserting that it supplied evidence of the RRP's accuracy which the regulator allegedly ignored. The group maintains that the ASA's application of RRP regulations is detrimental to consumers seeking the best deals and is impractical for businesses. Frasers Group, founded by Mike Ashley, has a history of offering sportswear at low prices and has since expanded into luxury fashion.