Fast fashion retailer Nasty Gal recently fell foul of the Advertising Standards Authority (ASA) for the way it conducted a promotional competition on its Instagram account, with the advert banned from appearing again.
The ruling was sparked by a complaint alleging that the fashion brand failed to properly announce the winner of a $1,000 cash giveaway – raising questions about transparency in promotional marketing.
The controversy centres on a competition advertised as part of Nasty Gal’s 12 Days of Christmas Giveaways, which invited participants to follow the brand, like the post and tag their friends to enter.
According to Nasty Gal, the winner was announced directly in the comments section of the original post.
However, the complainant argued that without a formal announcement, it was difficult for followers to verify the result, particularly since many had inquired about the outcome in the comments.
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Although Nasty Gal provided evidence of communication with the winner shortly after the competition’s conclusion, the ASA ruled that simply responding to a comment within a post containing thousands of interactions was not an adequate method of disclosure.
The ASA emphasised the importance of clarity and accessibility in announcing winners, stating that promotional marketing must include clear information indicating that a valid award has been made.
The regulator further noted that the Instagram algorithm does not guarantee that comments will be prioritised in a way that ensures all entrants will see announcements, thus failing to meet the requirements outlined in the CAP Code.
This ruling serves as a reminder for brands engaging in social media promotions – clear communication is essential to maintain trust and compliance.
In light of this ruling, the ASA has prohibited Nasty Gal from executing future promotions in the same manner. It also highlights a growing demand for transparency in social media marketing, as consumers increasingly seek assurance that promotional practices are fair and clearly communicated.
