The UK’s Advertising Standards Authority is investigating e-bike company Forest over potentially misleading claims about free service access.
- Forest, based in London, allegedly misled consumers by suggesting free daily access to their e-bikes, excluding necessary unlock fees.
- The investigation highlights the deceptive nature of Forest’s promotional strategy, which suggests the first 10 minutes of use each day are free.
- Forest maintains that fees are communicated to users upon signing up and through its app despite the investigation.
- The company, originally Human Forest, claims its offer supports its zero-emissions mission but faces criticism over hidden costs.
The Advertising Standards Authority (ASA) has opened an inquiry into the practices of the e-bike rental company Forest, following complaints regarding its promotional tactics. The controversy centers around Forest’s assertion that users can access its e-bikes for free for 10 minutes each day. Despite this claim, customers must still pay an initial unlock fee and a flat service fee of £1.90, raising concerns over consumer deception.
Forest, which was rebranded from Human Forest, emerged as a cost-effective alternative to established rental services such as Lime. While the company promotes sustainability through its zero-emissions fleet in London, this investigation casts doubt over its commercial strategies. The ASA’s probe followed reports by London Centric, a media source that brought these allegations to light.
A spokesperson from Forest defended the company’s pricing transparency, emphasizing that costs related to the ‘pay as you go’ model are clearly presented during user registration and within its application. However, the promotional materials on the bikes themselves – featuring slogans like ’10 minutes free daily’ – do not immediately clarify the associated start-up fees.
To attract a broader customer base, Forest offers bundle packages beginning at £3 for 30 minutes, valid across multiple rides within a 24-hour period. These bundles purportedly avoid the extra charges of unlock and daily service fees, according to Forest representatives.
Forest’s co-founder and CEO, Agustin Guilisasti, has publicly reiterated the company’s commitment to affordable, sustainable transport solutions for Londoners. Despite the backlash, Guilisasti argues that the e-bike initiative supports a larger mission of accessible zero-emission travel, aligning with the company’s longstanding goals.
Founded during the e-bike trend surge in 2020, Forest has secured significant investment, raising over £20 million. The firm surpassed one million registered users by the time of its September announcement, although it acknowledged sacrificing £11 million to maintain its free 10-minute ride offer.
Beyond pricing issues, the rise of e-bike rentals in London has led to urban challenges, such as the clutter caused by discarded bikes. While this issue poses potential dangers, especially for individuals with disabilities, efforts are underway to improve infrastructure, supported by significant investments from competitors like Lime.
The investigation into Forest by the ASA underscores the complexities in balancing promotional promises with transparent consumer practices.
