© 2011 itsa Ltd on behalf of the Trading Standards Institute.
Logos denoting membership of or approval by an organisation may be legitimately used by businesses. However, their misuse, deliberate or otherwise, can result in a commercial advantage, enabling business to be acquired unfairly, and may constitute a breach of the law.
Legislation specifically bans a trader from displaying any form of trust mark, quality mark or equivalent, if he is not authorised to do so. It is also a breach of the Regulations to provide false or deceptive information.
In the guide
Which businesses use logos?
What do logos convey to customers?
How are logos used?
The legislation
Specific precautions for business
Oral statements
What are the consequences of contravention?
Which businesses use logos?
Many sectors of commerce and trade promote their activities by using logos. Examples exist of logos used by the building industry, motoring organisations, professions, retail trade federations, finance and insurance services, tourism, and catering industries.
What do logos convey to customers?
Any business using a logo representing membership or approval encourages a potential customer to assume a benefit arising from one or more of the following:
- approval of a standard of service
- training or qualification of company personnel
- compliance with rules or codes of conduct
- existence of complaints/arbitration procedures
- commitments to be 'fair traders' or approved by well-known organisations such as councils, governments etc
How are logos used?
Logos are used in a variety of different ways including:
- display on company premises, hoarding, banners, vehicles and clothing
- company letterheads and other stationery
- trade and consumer brochures and leaflets
- advertisements published in newspapers and on television, telephone and trade directories
The legislation
If invalid at the time, the use of a logo in any of the above circumstances would breach the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). See our leaflet 'A guide to the Consumer Protection from Unfair Trading Regulations 2008' for further information on these Regulations.
The CPRs specifically ban a trader from displaying any form of trust mark, quality mark or equivalent if they are not authorised to do so. They also ban any form of claim that a trader, or their service, has been approved, authorised or endorsed by a public or private body when it hasn't (thus, written claims that are untrue are also prohibited, as well as the use of logos). They also ban a trader from claiming to be a signatory to a code of conduct if the trader is not a member/signatory.
It is also a breach of the regulations generally to provide false or deceptive information that leads consumers to enter into contracts they would not otherwise have entered into (for example, a consumer contracting with a trader only because he saw the logo of a trade association and therefore thought they would have additional protection if something went wrong).
Particular care should be taken in the use of the CORGI logo. The approved gas engineer registration scheme, previously operated by CORGI, was replaced in 2009 by the Gas Safe Register (operated by Capita). The Gas Safe Register is now the only gas engineer registration scheme approved by HSE under the Gas Safety (Installation and Use) Regulations 1998. Under these Regulations, all gas engineers wanting to lawfully undertake domestic and certain other gas work in Great Britain must be registered with this scheme. Although CORGI continues as an organisation, on no account should it be used to imply current registration.
You should also be aware that if you advertise to other businesses then the Business Protection from Misleading Marketing Regulations 2008 make it an offence to deliberately mislead other traders. There are also rules in these regulations regarding comparator advertising. See our leaflet 'A guide to the Business Protection from Misleading Marketing Regulations'.
If you are not sure if any of your advertising or marketing material breaches the above regulations then you should see advice from your local trading standards service. Ideally this should be done before publication.
Specific precautions for business
When applying for membership or approval of an organisation, traders are advised that they should not start to use any logo until authorised to do so by the organisation. Care should be taken when membership or approval of a business ceases, arising in particular from:
- any lapse of membership
- notification or cancellation by an organisation for any reason, such as a failure to meet standards or other requirements
Businesses should be particularly careful when:
- using stationery, publications and premises, etc
- providing advertising agencies with copy, or authorising them to use it
This is to ensure that no invalid logos are displayed.
Oral statements
Statements do not have to be in writing in order to breach the law. Any false or deceptive statements concerning the membership or approval of a business made by traders or their staff would breach the Consumer Protection from Unfair Trading Regulations 2008.
What are the consequences of contravention?
It is the responsibility of the business to ensure that no invalid claims of membership or approval are made by or on its behalf, including by advertising agencies. Contravention is a breach of the Consumer Protection from Unfair Trading Regulations 2008 and could result in prosecution or action under the Enterprise Act 2002.
Please note
This leaflet is not an authoritative interpretation of the law and is intended only for guidance. Any legislation referred to, while still current, may have been amended from the form in which it was originally enacted. Please contact us for further information.
Relevant legislation
Gas Safety (Installation and Use) Regulations 1998
Enterprise Act 2002
Business Protection from Misleading Marketing Regulations 2008
Consumer Protection from Unfair Trading Regulations 2008
Last reviewed/updated: October 2012
© 2013 itsa Ltd on behalf of the Trading Standards Institute.
