Advertisements from two whisky cask investment companies, Whisky Investment Partners and London Cask Company, have been banned by the UK’s advertising watchdog due to their misleading claims regarding financial returns.
The Advertising Standards Authority (ASA) initiated investigations into both companies following consumer complaints. Concerns were raised about the accuracy and substantiation of the investment return claims made in the adverts, as well as the adequacy of information provided about the associated investment risks.
The ASA upheld complaints against various forms of advertising by the companies. For Whisky Investment Partners, the watchdog scrutinized an online display ad, the company’s website, and two paid-for Facebook posts from the year 2022. Similarly, complaints were upheld against London Cask Company for their two national newspaper ads, website content, and a paid-for Google ad, all dating back to 2022.
One of the key concerns raised by the ASA was whether the companies’ advertisements sufficiently disclosed applicable fees and any associated conditions tied to their services.
An online display ad from Whisky Investment Partners, displayed on May 24, 2022, prominently featured the text “cask investment get returns up to 12% per annum.” The ad led users to a specific page on the company’s website, where further information was provided.
On this landing page, a headline declared “What is the best performing asset class of 2020? Whisky.” Beneath the headline, smaller text indicated, “We help investors get involved in a billion-pound market that has shown average returns of 8-12%* over the last couple of decades.” A button to download a free guide accompanied this information.
The ASA’s actions reflect its commitment to ensuring transparency and accuracy in advertising, particularly in the realm of financial investments, to safeguard consumers’ interests.
