Decision of the Complaints Committee 01469-16 Greenwood v Daily Mirror
Summary of complaint
1. Talisha Greenwood
complained to the Independent Press Standards Organisation, on behalf of Wynn
XS Ltd, that the Daily Mirror breached Clause 1 (Accuracy) and Clause 10
(Clandestine devices and subterfuge) of the Editors’ Code of Practice in an
article headlined “Secret tricks of wine cold callers”, published on 10 March
2016. It was published online on 9 March 2016 with the headline “The secret
tricks of wine cold callers revealed – and how boss bottled it when
confronted”.
2. The newspaper
had arranged for a staff journalist to apply for a job and “go undercover” at
Wynn XS, and the resulting article reported that the company “uses cold callers
to persuade people to take their savings out of the safety of a bank account or
pension and pump the money into fine wines”. It reported the sales techniques
used by the company’s employees, and said that the brokers discourage people
from seeking independent financial advice before investing.
3. The complainant
said that the journalist’s taking a job at the company, using a false identity,
was a breach of Clause 10. She also raised a number of other concerns about the
accuracy of the article: she said that the CEO of the company had not told the
journalist that in order to get people to invest money they “hypnotise them”;
that the CEO had not said that four people were “earning more than the CEO of
British Gas”; that senior sellers do not lie about having worked at Goldman
Sachs; that a senior broker had not said “it’s a hard life this brokering lark,
you chat to people and earn a f*** ton of money”; and that Wynn XS is not an
investment company but a sales company and therefore is not subject to
regulation by the Financial Conduct Authority (FCA). She also expressed concern
that the article had been illustrated by a photograph of the CEO which was nine
years old and had no connection to his current business. She provided an
alternative photograph for the newspaper to use online.
4. The newspaper
said that the investigation was justified in the public interest. Before the
journalist applied for the job the justification was considered internally by
the Editor of the column, the Associate Editor and the legal department. It was
then considered again prior to publication of the article. The newspaper said
that it would not have been possible to confirm that the company was actively
encouraging its sales staff to lie about themselves and put pressure on
potential customers without applying for a job there: they had not been
contacted by any “whistle blower”, and the company would not have openly
admitted that staff were working from a script. The journalist had applied for
and been offered two jobs as part of the investigation; both companies had been
featured in the article.
5. The newspaper
had considered that it was likely that Wynn XS was a “boiler room”, selling
over-priced investments to the public. The newspaper said that there were many
examples of people expressing concern about Wynn XS and Prime Trading 5 (the
company’s previous name) online, and a number of factors were considered:
“boiler rooms” often sell fine wines, as in this case; it appeared that the job
would involve cold-calling, which is typical of “boiler rooms”; the promised
earnings were largely based on commission and were extremely high; Prime
Trading 5 had been exposed for over-valuing wine and high-pressure sales
techniques; and despite the fact that the company website says it has been
active since 2006 it had in fact been dormant until a few years ago.
6. The newspaper
said that the journalist had been told in her job interview that some people in
the company “earn more than the CEO of British Gas”. Immediately after the
interview finished the journalist had written notes of it on her mobile telephone
and had then emailed the notes to herself. The interview was at 12.20pm and the
email was sent at 12.53pm; the newspaper provided a copy of the email. During
sales training the journalist had taken longhand notes, which included the
phrase “we hypnotise them”. It said that the comment about making a “f*** ton
of money” was attributed to the “blonde closer” in the journalist’s notes.
During training a 17-year-old employee had made a presentation about a sales
pitch he had been asked to learn in order to “close” deals. In the pitch to
potential investors he said that he had been married for 5 years, had a son
named Theodore, and had worked for Goldman Sachs for 11 years. The journalist
had also overheard this same line used by salespeople in the company over the
course of the day she had worked there. The newspaper said that the scripts
used by Wynn XS (copies of which the newspaper provided to IPSO) make it very
clear that it considers itself an investment company. The scripts ask at what
level people would feel comfortable investing, describe the process as “you buy
wine, hold then you sell at a profit, it’s that simple”, and tell customers
that they could conservatively make a 15% yearly return. The newspaper changed
the photograph which accompanied the online article to the one provided by the
complainant.
Relevant Code provisions
7. Clause 1
(Accuracy)
i) The press must take care not to publish inaccurate,
misleading or distorted information or images, including headlines not supported
by the text.
ii) A significant inaccuracy, misleading statement or
distortion must be corrected, promptly and with due prominence, and – where
appropriate – an apology published.
Clause 10 (Clandestine devices and subterfuge)
i) The press must not seek to obtain or publish material
acquired by using hidden cameras or clandestine listening devices; or by
intercepting private or mobile telephone calls, messages or emails; or by the
unauthorised removal of documents of photographs; or by accessing
digitally-held information without consent.
ii) Engaging in misrepresentation or subterfuge, including
by agents or intermediaries, can generally be justified only in the public
interest and then only when the material cannot be obtained by other means.
The public interest
1. The public
interest includes, but is not confined to:
i) Detecting or exposing crime, or the threat of crime, or
serious impropriety.
ii) Protecting public health or safety.
iii) Protecting the public from being misled by an action or
statement or an individual or organisation.
iv) Disclosing a person or organisation’s failure or likely
failure to comply with any obligation to which they are subject.
v) Disclosing a miscarriage of justice.
vi) Raising or contributing to a matter of public debate,
including serious cases of impropriety, unethical conduct or incompetence
concerning the public.
vii) Disclosing concealment, or likely concealment, or any
of the above.
4. Editors invoking
the public interest will need to demonstrate that they reasonably believed
publication – or journalistic activity taken with a view to publication – would
both serve, and be proportionate to, the public interest and explain how they
reached that decision at the time.
Findings of the Committee
8. The newspaper had
shown that - in advance of beginning its investigation - it had evidence of
concern that Wynn XS was trading in a way which would not generally be
considered acceptable. There was a clear public interest in investigating
whether the company was using dishonest tactics to encourage customers to
“invest” in wine. The newspaper would not have been able to establish the
veracity of the claims on the internet about the company’s sales tactics
without using subterfuge and misrepresentation, and the grounds for
investigation were established at senior editorial level in advance. The
investigation was justified in the public interest, and did not breach Clause
10.
9. The investigation
had uncovered sales practices at Wynn XS Ltd which would generally be
considered unethical. It was not disputed that sales staff were trained to
claim to customers that “small fortunes are always being made overnight within
this market”, and discouraged them from consulting with spouses or financial
advisers before investing. The publication of the information which the
newspaper had obtained using subterfuge and misrepresentation was justified in
the public interest; there was no breach of Clause 10.
10. The newspaper had provided contemporaneous notes of the
disputed quotations; there was no failure to take care over the accuracy of the
story. On the basis of those notes; the fact that it was not disputed that new
recruits are told that they can earn a lot of money at Wynn XS; and the nature
of the sales tactics revealed by the investigation, the Committee did not
establish that the quotations constituted significant inaccuracies which would
require correction under the terms of Clause 1 (ii).
11. Wynn XS sells people wine and tells them they could see
a sizeable financial return on their purchase. It was not inaccurate for the
article to describe Wynn XS as an “investment company”, and the newspaper had
been entitled to note that no recourse to the FCA was available. Further, the
use of an old photograph of the CEO to illustrate the article did not give a
significantly inaccurate or misleading impression of the nature of the company
that he now runs. There was no breach of Clause 1 on these points.
Conclusions
12. The complaint was not upheld.
Remedial Action Required
N/A
Date complaint received: 02/03/2016
Date decision issued: 18/04/2016