The regulator published rulings against Vintage Associates Fine Wine Merchants, Vinverum, Cult & Boutique, and Cult Wines today (13 November).
The ASA scrutinised social media adverts from the four companies and, in total, found six ads to be in breach of CAP Code rules around misleading advertising, qualification and financial products.
A paid-for Facebook ad, published by Simply Invest UK for Vinverum, stated: “Transform Your Portfolio with Fine Wine Investment”. A caption on the post stated: “Delve into the world of fine wine investment with our exclusive guide. Inside, discover: The lucrative advantages of fine wine investment. Expert strategies for crafting a tailored wine portfolio. Proven tips for maximising returns on your fine wine collection. And valuable insights to refine your investment approach. Act now – download your free guide.”
The ASA found that the claim “proven tips for maximising returns on your fine wine collection” was misleading.
In another ad, Cult & Boutique said fine wine had “delivered an annualized return of 13.6% over the last 15 years”. But the company failed to back this up with sufficient evidence when requested.
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Wine investment company Vintage Associates claimed returns of “Up to 600% in the last 20 years” in a Facebook advert. After an in-depth investigation, the ASA concluded that this claim “had not been substantiated and was misleading.”
Two paid-for Google ads for Cult Wines stated that “the wine market has outperformed the FTSE 100” and “Wine has a track record of returns and resilience in an unstable market”.
The ASA said the ads were misleading because they failed to illustrate the risks of the investments, did not make clear that past performance was not representative and did not necessarily give a guide for the future.
Wine investment in the UK is not currently regulated or subject to protection by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS). The ASA said wine investment companies needed to make this information clear in their advertising.
