GetChip - false advertising?

DireEmblem

Is this false advertising from Chip - Chances of winning a prize in Chip account is 1 in 6056, for every £10.

Chances of winning on premium bonds are 1 in 24,473 for every £1, so 1 in 2,447.3 for every £10 using their own stats.

Hence you do not have better odds of winning with Chip.

https://getchip.uk/savings-accounts/prize-savings-account

Linton

It is not false advertising because it says nothing about the cost of the "tickets".  It merely says that 1 Chip ticket is much more likely to win a prize than 1 premium bond, which is true.  It is not at all useful though as not only does it fail to mention the costs it says nothing about the prizes either. 

DireEmblem

Yes

Thanks Linton agree it’s a useless comparison.  On a 1 ticket to 1 ticket basis you are more likely to win, but you need to compare like for like so statistically you are not 4x more likely to win.  The cost of 1 chip ticket = 10 premium bond entries.  Buying the same value of either you are not more likely to win and this is where the 4x I see is wrong.

flaneurs_lobster

No

I put £100 in the Chip Prize Savings Account on a whim when I was loading up the 3% account last month. 

I'm ashamed to say that I cannot now remember (or find in the app) any details of the prizes, odds or, indeed, anything else other than the fact I won nada this month.


EDIT: I now read on their website that the draw results are notified on the 7th of the succeeding month. I fully expect to be quids-in by tomorrow.

Linton

DireEmblem said:

Thanks Linton agree it’s a useless comparison.  On a 1 ticket to 1 ticket basis you are more likely to win, but you need to compare like for like so statistically you are not 4x more likely to win.  The cost of 1 chip ticket = 10 premium bond entries.

Yes, to make a fair comparison you need to know the cost of the tickets and the value of the prizes.   But as you say, a statement that 1 Chip ticket is more likely to win than 1 PB ticket is true.   Misleading certainly, but not a lie.

grumbler

Yes

They do compare the chances for the same cost of a ticket - £10.

However, IMHO, the comparison makes no sense without comparing the winnings.

If so, yes, it's false advertising by my standards, but, possibly not by the standards of our spineless ASA.

razord

No

flaneurs_lobster said:

I put £100 in the Chip Prize Savings Account on a whim when I was loading up the 3% account last month. 

I'm ashamed to say that I cannot now remember (or find in the app) any details of the prizes, odds or, indeed, anything else other than the fact I won nada this month.

The text is very clear, "with each entry".

It's like a lottery scratch card costing £2.50 being 4x more likely to win as a £1 one... that's not false advertising is it?

grumbler

Yes

flaneurs_lobster said:

Whether the "value" of this "investment" is greater is a completely different question. 

Value of the prize?

And if it's wrong, then why, e.g., shops were forced to display prices per kg/L/... together with the price per item?

As I said, the rules are imposed by regulators, and I don't expect much from ASA.

flaneurs_lobster

No

grumbler said:

flaneurs_lobster said:

Whether the "value" of this "investment" is greater is a completely different question. 

Value of the prize?

And if it's wrong, then why, e.g., shops were forced to display prices per kg/L/... together with the price per item?

As I said, the rules are imposed by regulators, and I don't expect much from ASA.

They are making no claims as to the value of any prize, how can it therefore be a false claim? 

Unit pricing is a completely different matter. That would only be relevant if we were discussing the cost of buying the same thing and how it was priced.

eskbanker

grumbler said:

They do compare the chances for the same cost of a ticket - £10.

flaneurs_lobster said:

It is what it is, your chance of winning a prize for a £10 stake is greater with Chip than with Premium Bonds.

No, they're comparing a £10 Chip entry with a £1 premium bond - if the comparison was based on a like-for-like £10 stake, then the odds would favour PBs....

grumbler

Yes

flaneurs_lobster said:

grumbler said:

flaneurs_lobster said:

Whether the "value" of this "investment" is greater is a completely different question. 

Value of the prize?

And if it's wrong, then why, e.g., shops were forced to display prices per kg/L/... together with the price per item?

As I said, the rules are imposed by regulators, and I don't expect much from ASA.

Unit pricing is a completely different matter. That would only be relevant if we were discussing the cost of buying the same thing and how it was priced.

It's different only because it's some different regulation and, possibly, some different regulator.

Essentially, say, buying a 10% chance of winning £1 (once or every month) isn't different from buying a kilo of sugar.