The Advertising Standards Authority (ASA) recently ruled that a claim in an email from TransferWise, an online money transfer service, breached the CAP code. The email stated, “Anyone who sends money abroad is paying huge hidden fees if they’re not on TransferWise” Eris FX Ltd, a competitor, challenged whether the claim was misleading and could be substantiated.
TransferWise attempted to justify the claim by highlighting that banks added a mark-up fee to any exchange rate they charged their customers. TransferWise stated that this fee was often undisclosed and consumers were unaware of the actual cost of any international money transfer. However, ASA concluded that consumers were unlikely to regard the mark up-fee as a fee which they had not been made aware and therefore the claim by TransferWise was ambiguous and likely to mislead.