How Auctionworld.tv & Chase-it.tv were forced off air.

 

Shopping service Auction world.tv & its sister station Chase-it.tv were removed from the Sky Platform at 28E during late 2004 for shoddy business practises. A record fine led to the administrators being called in, and eventual closure.

 

This is how the story unfolded: (news reports from various sources)

21st June 2004:

Teleshopping channel Auctionworld has run into serious trouble with media regulator Ofcom after notching up more than 120 complaints for poor customer service.
Ofcom said it was seriously concerned about Auctionworld after the channel was found guilty of repeatedly failing to deliver customer orders on time and failing to make sufficient arrangements to handle customer enquiries.

"Auctionworld has a history of compliance failures in terms of late or non-delivery of products and poor customer service. Ofcom continues to remain seriously concerned and will carefully monitor the licensee's compliance over the coming months," the regulator said in its latest advertising complaints bulletin.

The station said it had deliberately extended the delivery time on some products and had broadcast the changes on-screen, but admitted that it had failed to meet even its extended delivery deadlines for some products.

It is the second time Auctionworld has been found in breach of the advertising standards code. Last year Ofcom's predecessor, the Independent Television Commission, criticised the station for similar offences.

17th November 2004:

Media regulator Ofcom has fined shopping channel Auctionworld £450,000 after nearly 1,000 customers complained about its service.

The channel could also have its broadcasting licence revoked.The Auctionworld fine is the third biggest ever imposed on a broadcaster and the most serious penalty imposed by Ofcom since it took over regulating commercial television at the beginning of the year. Ofcom said the number of complaints was "unprecedented" and the £450,000 fine follows repeated code breaches by Auctionworld. The channel was found guilty of broadcasting "misleading and inaccurate" prices for diamonds and diamond jewellery. In one instance Auctionworld was accused of selling diamonds at up to 28 times their independent valuation, according to the regulator. Another set of loose diamonds advertised by Auctionworld with a guide price of £19,360 was independently valued at £3,580. Ofcom said such valuations were "totally unacceptable". Auctionworld was also found guilty of unacceptable delays in delivering goods and "severely inadequate" arrangements to handle customer inquiries.

The regulator said the channel's explanation of how its guide prices were set was "confusing and self-contradictory". An Ofcom spokesperson said: "This is the most serious sanction that can be imposed under the terms of the Communications Act. We have given notice to Auctionworld that Ofcom intends to revoke its licence, and it can be revoked at any time within the next six months if it fails to meet any of its obligations.Ofcom added the decision to take away the channel's licence "was not taken lightly... and was only considered after all other avenues had been exhausted and as a final resort".

Auctionworld, which launched three years ago and sells luxury goods including diamonds, plasma TVs and cameras, employs nearly 300 people. In its judgment, Ofcom said the channel's management had failed to explain why it had received so many complaints, totalling 947 over a 12-month period. The watchdog added that Auctionworld's most serious problem was its "continued and repeated failings in customer service". "After three years' broadcasting, Auctionworld is no longer a new business which could be excused by start-up problems," it said. Ofcom added that it was "surprised" that managing director Grant Lin lived and mostly worked abroad and was not able to attend the hearing into Auctionworld's breaches of its advertising standards code.

22nd November 2004:

TV regulator Ofcom has levied a huge fine of £450,000 on TV shopping channel Auctionworld after receiving hundreds of complaints about the service. The regulator slammed the company for having a "severely inadequate" standard of customer service after it continuously refused to deal with customers' goods not arriving on time. It is also accused the channel of vastly overestimating the High Street value of its goods. The only way Auctionworld can escape the revocation of its licence is by adhering to an eight-point list of requirements, including reading out a statement three times a day for 21 days saying that it has been found guilty of "extremely serious" breaches. If Auctionworld fails to meet all eight points within six months it will lose its licence immediately. Meanwhile, both Auctionworld and sister station Chase-It.tv are off air and it is not currently known when they will return.

 

24th November 2004:

Auctionworld, the troubled shopping channel, has gone into receivership just days after landing a £450,000 (E680,000) fine from Ofcom.

The channel has £14m of debts including liabilities to customers and suppliers. The channel, which employs 300 people, is still on air while the receivers seek a rescuer. But administrator Philip Long of accountants PKF was not optimistic and admitted it was unlikely creditors would be paid.

Launched in 2001 the channel has had a chequered history including several brushes with the regulator. Last week Ofcom, after multiple customer complaints, imposed the fine and told the channel to broadcast a confessional statement three times a day.

 

7th December 2004:

The UK advertising watchdog is to crack down on home shopping channels exaggerating their price cuts in the wake of the collapse of Auctionworld. The Advertising Standards Authority is to establish new rules banning channels from displaying a recommended retail price for a product if it is the only outlet selling the product.

The rules will oblige home shopping channels to provide proof of claims that a rival is selling a product at a more expensive price. Operators will also have to state that any previous price can only be shown if it has been used for 28 days in the past six months. "Clearer pricing guides will lead to fewer disappointed customers, which is good for the both the industry and consumers," said Andrew Brown of ASA.

Auctionworld went bust with debts of £14m (E20m) after Ofcom imposed a £450,000 fine for repeated breaches of the television standards advertising code.

17th December 2004

Ofcom has revoked the licence of shopping channel Auctionworld, which went into administration last month, after the communications regulator's deadline to pay a £450,000 fine passed earlier this week.
The regulator said it had no choice but to take away Auctionworld's licence, because the broadcaster had failed to implement remedies demanded by Ofcom and had "materially misled" the watchdog about its financial position - which included outstanding liabilities of £14m - and ability to pay the fine.

Ofcom added that Auctionworld's administrators had been given several opportunities to say what they were going to do about paying the £450,000 fine and complying with the remedies it was demanding. But after a final deadline passed at midday on Tuesday, the regulator decided to revoke the shopping channel's broadcasting licence.

 

These are the info cards being broadcast by the troubled channels in early December 2004:

 

Auctionworld.tv closed card

 

Chase it.tv closed down card

 

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