Misleading advertising? Ster-Kinekor's Morvies Club under scrutiny

The Advertising Regulatory Board (ARB) reviewed a complaint from a movie lover about Ster-Kinekor’s Morvies Club advertisement, which he claimed promised "bottomless movie tickets per month."

However, he noted that IMAX and Cinema Prestige formats, including 2D and 3D films, were excluded. The complainant alleged that the advertisement, displayed on the app and in theatre lobbies, was misleading.

According to the complaint, apart from not disclosing that IMAX and Cinema Prestige formats are excluded, the booking interface does not clearly distinguish between included and excluded formats until late in the process.

It was also said that a three-month minimum subscription commitment (price lock) was not disclosed in the advertisement. Ster-Kinekor, in response, submitted that all its marketing campaigns, including those related to its subscription club, are always accompanied by a clear “T&C’s” disclaimer.

It further states that, due to spatial limitations in certain formats such as on social media and posters, they direct customers to their website where the full terms and conditions are accessible.

Screenshots of the relevant terms and conditions from its website, dealing with the Morvies Club exclusion and the price lock terms, were included in the response to the ARB. The advertiser advised that, while the complainant’s cancellation fell within the three-month lock period, his subscription was cancelled as an exception.

The ARB’s directorate, in dealing with the complaint, pointed to its code of advertising practice, which prohibits advertisements that contain material which may be misleading regarding the advertised product.

The directorate visited the advertiser’s website and found that while Ster-Kinekor’s various terms and conditions, including for its subscription club, do appear at the bottom of the webpage (as a permanent footer), there is nothing in the advertised offer itself to alert consumers that material terms apply to this offer.

The directorate said the claim "bottomless movie tickets per month” is qualified only by the words “up to five movies a day, every day”. It says this creates a reasonable expectation that all movie formats are included.

The exclusion of IMAX and Cinema Prestige, particularly given that these formats include 2D and 3D options, is material and should have been disclosed, the directorate said. It added that, while it does accept that advertising does have spatial limitations, a simple indication that the claims are qualified, either through the words “T&C’s” or an asterisk next to the claim, would avoid any misunderstandings and would draw customers’ attention that qualifications are applicable.

Accordingly, the directorate found that the key omissions by the advertiser contravened its code. It instructed the advertiser to amend the advertisement so that it does not create the impression that the “Morvies Club” benefits apply without restrictions.