The UK advertising watchdog ASA today published its ruling on a complaint by The Transparency Task Force against CurrencyWave.
The ad in question appeared on a website for CurrencyWave, www.currencywave.com, a foreign currency payments service, seen on 7 March 2024.
The home page featured headline text which stated, “CURRENCYWAVE SMARTER GLOBAL PAYMENTS. Further text stated, “Transparent pricing, secure transactions” and included two buttons labelled “CURRENCYWAVE FOR BUSINESS” and “CURRENCYWAVE FOR INDIVIDUALS”.
It also included an image of an electronic tablet with text which stated, “Cost Comparison Sending a USD 75,000 payment: Total cost […]” and displayed the rates of the advertiser and four other providers. Text stated, “The above costs were calculated using online exchange rates obtained on 25 October 2022 for sending an international currency transfer of $75,000 by SWIFT priority payment”.
Underneath, text stated, “Powered by: Currencycloud A Visa Solution” and featured the Currencycloud logo. Further text stated, “[…] CurrencyWave removes the complexity and high cost of receiving, holding and sending payments in multiple currencies and serves a growing market of businesses involved in global trade”.
The page included an animated video and a voice-over stated, “CurrencyWave gives you direct online access to the wholesale currency market, allowing you to bypass expensive and outdated banking services […] We can negotiate substantially better exchange rates for you […] Your payments will be sent through a fully FCA Authorised platform […] So if you want to navigate currency markets more efficiently, and save money, make CurrencyWave your international payment partner.”
The video included on-screen text which stated, “FCA Authorised”. Further text below stated, “FCA REGULATED E-MONEY PARTNER”.
Small text at the bottom of the page stated, “For clients based in the United Kingdom and rest of the world, payment services for CurrencyWave are provided by The Currency Cloud Limited”.
The Transparency Task Force challenged whether the ad misleadingly implied that CurrencyWave:
- provided the payment services, because they understood they were carried out by CurrencyCloud; and
- were regulated by the Financial Conduct Authority (FCA).
- They also challenged whether the cost comparison information was misleading and could be substantiated.
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Upheld
The ASA acknowledged that the ad included the wording “Powered by: Currencycloud A Visa Solution” near the top of the home page. However, the Authority considered “powered by” was ambiguous and did not explain the nature of the relationship between CurrencyWave and CurrencyCloud.
There were also references to CurrencyWave having an “FCA E-Money Partner”, which appeared under the heading “Use CurrencyWave With Confidence”. The ASA did not consider that claim was sufficient to make clear that another company was responsible for handling the payments or that consumers would have understood that to mean that CurrencyCloud was the company that was conducting the payment services. The ASA considered that was information that should have been included upfront.
The ad included text in the footer that stated, “payment services for CurrencyWave are provided by The Currency Cloud Limited”. The ASA considered that wording appeared in very small text and at the bottom of the page, and therefore it was likely to be overlooked. Notwithstanding that, even if some consumers had seen it, it was insufficient to override the impression that the foreign exchange payment services were carried out by CurrencyWave.
Because the ad gave the impression that the foreign exchange payment services and financial transactions were provided by CurrencyWave when that was not the case, the ASA concluded that the ad was misleading and breached the Code.
On this point the ad breached CAP Code (Edition 12) rules 3.1, 3.3 (Misleading advertising), 3.9 and 3.10 (Qualifications).
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Upheld
The video did not mention CurrencyCloud and the ASA considered in that context, the claims referencing FCA authorisation and regulation would be understood by consumers to refer to CurrencyWave as being FCA regulated.
However, the ASA understood that CurrencyCloud was FCA authorised, but CurrencyWave was not. At the bottom of the webpage text stated, “The Currency Cloud Limited is authorised by the Financial Conduct Authority”.
As referenced above, that wording appeared in very small text, positioned at the bottom of the page, and therefore the ASA considered it was likely to be overlooked. Notwithstanding that, even if some consumers had seen it, it was insufficient to override the impression that CurrencyWave was FCA authorised.
Because the ad implied that CurrencyWave was authorised by the FCA when that was not the case,the ASA considered the claims and impression of the ad was likely to mislead.
On this point the ad breached CAP Code (Edition 12) rules 3.1, 3.3 (Misleading advertising), 3.9, 3.10 (Qualifications) and 3.50 (Endorsement and testimonials).
3. Upheld
The ad featured a chart comparing the cost of sending $75,000 with CurrencyWave and four other companies and included the amount that was saved if they used CurrencyWave over those other providers. Text stated that this information was obtained from exchange rates obtained on 25 October 2022.
The ASA noted CurrencyWave’s point that exchange rates were dynamic and subject to continuous change. The ASA therefore considered that using exchange rate data taken more than 12 months prior to when the ad was seen could not give a reliable or accurate representation of the rates consumers could expect to receive from CurrencyWave or from the other companies.
The information explaining the basis of the cost comparison was in small text underneath larger, more prominent text. Notwithstanding that, even if that information had been more prominently stated any pricing claims that were based on that data would be misleading.
The ASA also considered that for comparisons to be accurate, monitoring of competitor exchange rates would need to be updated much more frequently; the ASA had not been provided with any evidence that this was being done.
The ASA therefore concluded that the cost comparison information was likely to mislead and breached the Code.
On this point the ad breached CAP Code (Edition 12) rules 3.1, 3.3, (Misleading advertising) and 3.33 (Comparisons).
The ASA ruled that the ad must not appear again in the form complained about. The Authority told CurrencyWave Ltd to ensure they did not imply that they conducted foreign exchange payments and financial transactions if that was not the case. The ASA also told them not to claim or imply they were FCA authorised if they were not, and to ensure that any future price comparisons were accurate, including by using up to date exchange rates.
