The UK's Advertising Standards Authority (ASA) ruled
against Spreadex Limited in a case brought by London Capital Group and
CMC Markets. The subject was an advertisement which London Capital Group felt
was both denigrating to their company and misleading.
The advertisement, for Spreadex-owned
ShortsAndLongs.com which ran in print media, bore the heading 'Capital
Punishment?' and a logo similar to that of Capital Spreads. The body of the
advertisement read 'Looking to escape your spreadbetting firm? Want an account
with tight spreads, fast executions and no re-quotes? How about free guaranteed
stops, which means you will never lose more than is in your account.'
According to CMC Markets, the
advertisement was misleading, implying that Capital Spreads didn't offer tight
spreads, fast executions, no re-quotes or free guaranteed stops. Since the
advertisement used the term 'capital' along with a logo similar to that of
Capital Spreads, London Capital Group claimed that the ad clearly denigrated
Capital Spreads. The ASA ruled against Spreadex Limited on both counts, and said
that the advertisement could not continue to be disseminated in its current
Spreadex claimed that the
advertisement was light-hearted and did not intend to denigrate any specific
firm, but the ASA concluded that the advertisement clearly made reference to
Capital Spreads, a competing sportsbetting firm. According to the ASA ruling,
consumers were "likely to understand the graphic as a reference to Capital
Spreads' service." This is the second time in less than half a year that
Spreadex Limited has had the ASA rule against them.