ASA Slaps Whisky Cask Investment With Enforcement Notice
The UK Advertising Standards Authority (ASA) has sent a non-compliance Enforcement Notice to the Whisky Cask Investment industry. The decision came after the ASA found too many deceptive ads being emitted from the sector.
According to a report published in The Mirror, many whisky cask investment companies were breaking advertising rules. The companies ran advertisements that failed to comply with standard requirements laid down by the governing bodies. Some of which were in clear violation of customer rights or even bordered on fraudulent practices.
Whisky Cask Investment Enforcement Notice
The ASA pointed out that several companies were investigated and warned of their shortcomings. The majority of these companies failed to adhere to the following rules clearly stipulated in the Enforcement Notice.
• Adverts for cask whisky must make clear that investments can go down as well as up.
• They must not state or imply that results can be guaranteed.
• Profit claims must be supported by documentary evidence.
• The risks must be made clear.
• Adverts must warn that whisky investment is unregulated.
• Fees and other costs must be stated.
In addition, some companies have even been subpeoaned and are in jeopardy of being closed down. One such company is Whisky Advisors Limited. The outfit presents itself as an expert in locating rare whiskies at the best prices. even though several warning signals were visible on the website such as spelling errors, investors dove in to avail of bargains.
The company is now under investigation following a closure petition filed by the High Court. The hearing is scheduled for December 6, 2023, According to The Mirror, the company’s Director Krzysztof Maruszewski was not responsive to its request for comments.
The whisky cask investment has been around since the early 1900s when the US Senate allowed its usage as a form of investment. However, the modern landscape has become an unregulated venture with little or no guarantees for investors.
