In August 2022, the Advertising Standards Authority (ASA) investigated two issues in relation to a website published by funeral plan firm Golden Leaves, both of which were upheld.
Since the website in question was published, the FCA became responsible on 29th July 2022 for all aspects of funeral plan firms’ regulated activities, including the issuing of financial promotions.
The website for Golden Leaves included a box on the homepage with the text “How can I have a green funeral?” and “Choosing an environmentally-friendly funeral not only assists your loved ones but also makes a positive statement of intent to help preserve the world in which we live.”
A page titled “Green funerals” included “Our Green Funeral Plans are kind to your family, kind to the environment.” Further down the page, the promotion stated “Our green funeral plan can include options for natural and biodegradable coffins made of sustainable materials including wood, willow, and wool. The entire carbon footprint of a funeral service may be offset by tree planting in conservation areas or by donating funds to preserve endangered rainforests around the world. Additionally, on your behalf, Golden Leaves funeral plans will even contribute to an environmental fund that combats climate change for the benefit of future generations.”
The ASA challenged whether the following claims were misleading and could be substantiated;
1. the descriptions of coffins as “eco-friendly” and “green”, and
2. the references to a “green” and “environmentally-friendly” funeral.
The complaints were upheld. The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (the CAP Code) requires that the basis of environmental claims must be clear since unqualified claims could mislead if they omit significant information. The Code also requires that absolute claims be supported by a high level of substantiation and that marketers base environmental claims on the full life cycle of the advertised product, unless the marketing communication states otherwise, and must make clear the limits of the life cycle.
Because the ASA considered that consumers would understand the terms “green” and “environmentally-friendly” in the context of the promotion to be absolute claims about the whole life cycle of the funeral and because the evidence did not support that purchasing a funeral plan from Golden Leaves would have a net neutral or positive impact on the environment, the ASA concluded that the claims had not been substantiated and were misleading.
The promotion was banned from appearing again in its current form. The ASA told Golden Leaves not to state or imply that its products had a net neutral or positive environmental benefit unless it held substantiation that demonstrated this across their whole life cycle and to ensure that the basis for the environmental claims made was made clear to consumers.
If you’d like to know more about how we can help you with your funeral plan financial promotion arrangements, or any other regulatory compliance issues, our specialist team is here to help.
Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.