The complainants complained that a product called an Electro Smart apparatus had been misrepresented in an insert shown on Carte Blanche. They complained that Electro Smart was portrayed as a mere timer. It was also implied that it did not save electricity. A further complaint was that Carte Blanche failed to properly deal with a 1986 SABS report which found a similar product to be effective in saving electricity. The complainants also objected to the statement that certain of their contracts were void as they failed to comply with the National Credit Act. The BCCSA found that Carte Blanche breached clause 28(3) of the Code of Conduct for Subscription Broadcasting. Carte Blanche (1) failed to fairly present an opposing expert view in respect of the description of Electro Smart as a mere timer; (2) failed to adequately refer to a 1986 SABS positive finding on a similar apparatus; and (3) failed to make the legal opinion broadcast that the contracts were null and void in terms of the National Credit Act available to the complainant so as to obtain their view, which is that the contracts did not fall under the National Credit Act. As a sanction M-Net was required to broadcast the decision of the BCCSA Tribunal during the first five minutes of Carte Blanche.
On appeal it was found that a balanced and fair presentation of the viewpoints of opposing parties was not broadcast by the Appellant and the overwhelming impression was created by the producer that the device in question was a scam and a rip off. It was found that certain of the evidence in favour of the Respondents that was in the possession of the Appellants was ignored by the Appellants to the detriment of the Respondents. The appeal was not upheld but the sanction imposed by the Tribunal, at the request of the Respondents, was amended and changed to a reprimand.