KEY POINTS:
A 30-second advertisement for digital television service Freeview has been canned after the Advertising Standards Authority agreed with complainants who said it was misleading.
The advertisement promised "crystal clear quality for free", but complainants said viewers could only receive the Freeview signal after they had bought a set-top box.
They argued that the set-top boxes could cost up to $300, making the advertisement's claims about a "free" service misleading.
In its submission defending the commercial, Auckland advertising agency TBWA\Whybin said Freeview was free-to-air as there was no monthly subscription fee.
"We are very sorry that the complainants have taken our commercial in the wrong light. It was never our intention to mislead the public," the submission continued.
A majority of the ASA's Complaints Board agreed the advertisement made an exaggerated claim, which omitted reference to an essential purchase, and was thereby misleading to the consumer.
Steve Browning, general manager of Freeview, told the Herald the company would appeal the ASA's decision.
"It's very important to us that we can continue to advertise [Freeview] as a free-to-air-service," he said.
"It goes right to the core of our name."
Browning said consumer research indicated the majority of people were aware they needed to buy a set-top box in order to receive Freeview and the company never intended to mislead consumers.
