CleverKeith said the ad only directed consumers to their website and did not give the impression they would advise consumers on how to receive a “protection payment”, and that the website footer made clear their status as a lead generation service.
ASA and industry response
But the ASA did not agree with Stillbloom's assessment.
In a statement, the watchdog said: "We considered consumers would understand from the ad that by contacting CleverKeith, via the website linked under the video, they would be able to obtain advice on how to receive a protection payment, and that the figure of £237,578 shown in the ad was indicative of the amount they could receive as a payment.
"We understood that CleverKeith, once contacted through the online form on their website, would only pass consumers’ details on to third-party insurance brokers, after which consumers would be offered a life insurance policy.
"We had not seen evidence that consumers could obtain the figure shown in the ad, and considered the claims misrepresented life insurance as a way of obtaining a large sum of money in the form of a “protection payment”.
"We also ... concluded the ad was misleading and, on that point, the ad breached CAP Code (Edition 12) rules (Misleading advertising) and (Substantiation)."
The CAP Code states that marketing communications must not falsely claim or imply that the marketer was acting for purposes outside its trade, business, craft or profession.
Under the code, marketing communications must make clear their commercial intent if that was not obvious from the context.
Industry response
In response to the ASA's ruling, Alain Desmier, managing director of Contact State, a company that seeks to promote verifiable lead generation services, said this ruling provided "clarity".
Desmier told FTAdviser: "It is welcome to see the ASA rule on an issue like this with such clarity, at long last. This is an advertising tactic that has been used by lead generators and some insurance distributors alike and the regulatory attention here means that ignorance is no longer an excuse."
He urged buyers of insurance leads to update their contracts and agreements with lead generation partners to specifically prohibit this type of language and advertising, saying this was "an ideal opportunity for all life insurance lead buyers to conduct a review".
Desmier added: "A ruling like this does significant damage to a lead generator's brand and credibility, and should be a warning to everyone involved with generating these sorts of financial promotions that the tide is turning."
In April 2020, FTAdviser raised the alarm about lead generation adverts using 'scare tactics' and misleading information across social media accounts, especially after lockdown took hold globally.
At the time, campaigners called for better lead generation verification processes to be put in place to protect the end consumer and help the insurance industry's reputation.
