The Advertising Regulatory Board (ARB) has ordered investment group 10X to withdraw an ad that "disparages" its competitors and implies that all other retirement fund CEOs lie.
According to Business Insider South Africa, in the ad 10X CEO Steven Nathan takes a lie detector test, and says: “Would the CEO in charge of your retirement fund take a test like this?”, suggesting that some fund managers might not.
Nathan says two adverts were disputed, one of them which was five years old.
Speaking on the lie detector particular ad flighted a year ago on YouTube, Nathan explains that it was meant to be a challenge to consumers to find out exactly what they are paying.
It was completely authentic. We had a proper lie detector expert but I actually didn't actually have a lie detector going at the time because I was told that you will never pass a lie detector when there is distractions around you, doesn't matter if you are telling the truth.— Steven Nathan, CEO and co-founder - 10X
It was a challenge to consumers to say, do you know the fees you are paying for your retirement funds? Because we know that on a company pension fund, your investment fees are almost never disclosed across the industry...the challenge was to say go and find out and would the CEO of your retirement fund company take a lie detector test where they would talk about fees and the lack of transparency.— Steven Nathan, CEO and co-founder - 10X
Nathan says they simply suggested that these CEOs might not agree to the test.
We saying, do people understand the fees they pay and the long term impact of fees.— Steven Nathan, CEO and co-founder - 10X
He says the advert has been withdrawn but
One of the points that they took us to task on was that it is not factual and it is not in the public interest. What we saying is factual and definitely is in the public interest, so you kind of feel that maybe you have been hard done or bullied.— Steven Nathan, CEO and co-founder - 10X
I am not an expert in the law on advertising but if I look at common sense and what goes on in the investment industry, what I have seen for 25 years, I would say that 10X is on the side of the consumer and the industry by and large is more part of the problem than the solution.— Steven Nathan, CEO and co-founder - 10X
Click on the link below to hear the full interview...