Out-Law News

Dixons to end misleading 'no interest' claims


Dixons Stores Group has undertaken to ensure that it no longer advertises its credit services as "no interest". The Office of Fair Trading stepped in after the company used advertising that breached an agreement Dixons had previously reached with the OFT.

Since 2001, eleven companies, including Dixons, have agreed with the OFT to end advertising campaigns described as misleading that claimed "interest free" credit or "0% APR" or "interest free option/choice" deals for their products.

In fact, interest was payable from the date of the agreement if a lump sum was not paid off in full by the end of the interest free period.

The OFT takes the view that such adverts break the Consumer Credit (Advertisements) Regulations of 1989, which ban any advert that states or implies that a consumer can get interest-free credit when in fact he would be liable for consumer charges.

Currys, part of the Dixons Stores Group, ran a campaign breaching that agreement. Dixons said it was a marketing error. It appears that other than naming-and-shaming, the OFT is taking no further action.

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