Advertising Scams (Part 9 – Words that Deceive, part 1)
We all recognize them: the sensationalized words that advertisers use to attract our attention. Remember, they have to get you to look at their product before they can sell it to you. Here are a few favorites along with their true meaning:
New! - (First warning – the exclamation mark is your first indication that they are trying to trick you.) – Does “new” mean better? Many recently released products are subject to recall or upgrades. Ask yourself: What about this is “new”? Is it a totally new product? Is this an old product with some new added?
It is frequently the second choice. In such cases it may be a new package (whoopee) or it may contain a new ingredient. There probably is no explanation on the package to explain why they had to change the contents – so research it first. The new ingredient may simply be a new preservative, a substitution, or some over-the-counter additive that may sound good but in reality does little or nothing. Accompanying “New!” is usually a higher price.
Better – (or Improved) - The first thing I wonder is why were they selling an inferior product to begin with. Is it “better” because it contains something “new” or because they changed the taste? Reread “New!” and you’ve just about covered this topic as well.
Guaranteed – (or Warranted) – In most cases this phrase is useless. The product itself may be guaranteed to work if you use it exactly as described, in a specific environment, at a certain time of the day, or when your in-laws are visiting. Never will the terms of this promise be spelled out on a package, and rarely in an advertisement. The Web site may have the details, but it will take you 10 minutes searching the site to find it and three hours of reading to understand it.
Guarantees always contain exceptions. There are always time limits (1 year, 3 months, 10 days, until you open the box) and usage limits (Pronghorn toothpaste is guaranteed to prevent cavities if you use it four times a day, with a Pronghorn Superior Toothbrush, along with daily flossing, with Pronghorn Super-Glide Floss. You must also prove that you visit a Pronghorn pre-approved dentist for cleaning at least once a month.).
Even if you meet all the requirements, what sort of satisfaction will they provide? They may only replace a certain part or it may have to be brought or mailed in to a certified repair store (at your cost usually). They may repair it or substitute another repaired product – rarely will a company give you a completely new product to replace a malfunctioning one.
Some guarantees are “money back if not completely satisfied.” In most cases you have to pay shipping and possibly a restocking fee, which, together, may come to more than you originally paid.
Better Than – My dog’s better than your dog. Our car has a larger glove compartment… get better mileage than…. And has a lower price than… If a product’s only quality is that it has some feature that is better than other products, look at those other products. Very few things have only one or two features. Car ads tout a couple of great items, yet they contain thousands. Just because a few are better may not mean it’s a better product.
Doctor Approved – (or Clinically Proven) – Almost every company that sells medical or medically related products have physicians on staff. They can easily get their company doctor to approve the product. They can even get 9 out of 10 of their company doctors to approve (and the 10th will be fired).
Similarly, such companies pay to have their products tested. They might even hire a dozen or more independent labs. Their ads, though will only describe the results of those that have good things to say about the product.
Imagine, FDA approved drugs have an amazing testing program, yet hundreds of them are recalled each year. Over-the-counter, homeopathic, and “natural” remedies have no such legal obligation. They frequently set up their own testing labs, give them fancy names, and then say how good the product is. (Also see “Listen to What Our Users Have to Say “ which will be in next week’s blog).
Sale – Do not be fooled into thinking that everything you see in a sales advertisement is ”on sale.” A recent examination of a supermarket weekly ad showed that 23% of the products had reduced prices while 8% of the items shown were price increases (compared with the previous week). Buy-One-Get-One ads may also be deceptive, with the store selling the product at higher than normal prices or at “list price,” which is usually more than you’d normally pay.
Starting at only… – (and For As Low As…) – A sure bet that what you want will be considerably higher. This is especially true with cruise, airline, and hotel prices. The one-week cruise for $699 may be for one room, located on the inside, lowest level, next to the laundry room. Also watch for vacation prices that are per-person, rather than per-room. Two people will pay twice the price.
Save up to – This is the same at the previous one. The ad may say you can save up to a huge amount, but then again you might not. This is especially true in auto ads that use the undefined terms “for qualified buyers.”
For Only – You have no idea what the value of this product is, so when you are quoted “only” $24,000 for a bathroom makeover or $43,000 for a time share, what do you have to compare it with. Become an expert before you shop. In fact, print out sales ads from the Internet and take them with you.
We once visited a time-share that wanted to sell us a week “for only $29,000.” The pitch ended when I showed them that there were more than a dozen of their units currently selling on the Internet for under $10,000.
Continued next week.
Monday, September 28, 2009
Wednesday, September 9, 2009
Consumer Safety & Awareness Part 34
Advertising Scams
(Part 8 – Deception Through Subtraction)
This is the last in our series "Deception by..." Next week we will be taking a brief vacation. Join us on September 28 for some new thoughts about consumer awareness.
Keep the box size the same, or increase it, and reduce the contents. Pay more, get less. We can take ice cream as an example. The companies cite rising sugar and milk costs as the cause of the price increases in 2006. Typically, in New York’s Mid-Hudson region, a 64-ounce container of brand name ice cream was retailing at $1.99 and occasionally going on sale for as low as $1.49. That year there was a reduction in container size to 56 ounces accompanied with a price rise to $2.99. Interpreting that, we go from 3 cents an ounce to 5.3 cents per ounce, a 60% increase almost overnight.
Forward to 2009 and milk and sugar prices are within 5% of their pre-price increase. Transportation costs have been reduced. Wages have gone up an average of under 4%, yet we now find that brand name ice cream is selling for $4.99 and the container holds 48 ounces. Per ounce that’s 10.4 cents, more than 3 times the cost it was three years ago. Expenses have, perhaps, risen 10% during that time.
How do companies justify that?
In a recent news article, dairy farmers are complaining that they are receiving less than 50% of last year’s prices for raw milk. Processed milk has come down considerably recently, possibly by as much as 25%. Yogurt and cottage cheese have also seen a slight price drop. But other dairy products have seen price increases. Cheese is up almost 25%. Bakeries are charging more citing increase milk costs. (Eggs are currently selling at the lowest in several years. Sugar and flour wholesale prices are down as well.)
Yet store brand ice cream, store brand cheese, yogurt, sour cream, and other dairy products have seen drastic price reductions. Bakery products continue to increase in price. If you ask why – you get the standard reply: “Cost of ingredients have increased.”
Bananas? There was a blight in the Cavendish bananas that we typically see in the stores. It’s one of hundreds of types of bananas, the one that we’re used to eating. Prices increased dramatically between 2006 and 2008 as a result of shortages and the cost of research to improve the crop. This has paid off, as the 2009 harvest is bountiful. WalMart has reduced prices from a high of 69-cents to 42-cents. Several box stores are down below that. Yet supermarkets, now that people are used to 69-cents, have generally refused to lower their prices.
Public congratulations must go to cereal companies. Their prices, which rose in 2005-6 due to the amount of corn diverted to ethanol, stabilized once the price of ingredients did. Recently we have seen sale prices reflecting levels not seen in over ten years. Post and Kellogg cereal, same size boxes (and occasionally promotional bonuses) can be seen for under $2.00, less than half the 2007 price.
A few weeks ago we compared advertising to magician tricks – now you see it, now you pay twice the price. Deception through subtraction applies to advertising pictures as well. Have you ever compared a store’s ad picture to the real thing? They show huge English muffins holding overflowing egg-and-cheese sandwiches. In actuality, they usually picture the pre-cooked items. Once prepared and handed to you, they may be half the size.
Last winter a national chicken restaurant was advertising 12 pieces for $9.99 (with all the trimmings), 83-cents per piece. Now they have a great deal for you – 16 pieces for only $19.95. That’s a price increase of 42 cents per piece of chicken, a 50% increase. A slightly larger quantity for a considerably larger price.
(Part 8 – Deception Through Subtraction)
This is the last in our series "Deception by..." Next week we will be taking a brief vacation. Join us on September 28 for some new thoughts about consumer awareness.
Keep the box size the same, or increase it, and reduce the contents. Pay more, get less. We can take ice cream as an example. The companies cite rising sugar and milk costs as the cause of the price increases in 2006. Typically, in New York’s Mid-Hudson region, a 64-ounce container of brand name ice cream was retailing at $1.99 and occasionally going on sale for as low as $1.49. That year there was a reduction in container size to 56 ounces accompanied with a price rise to $2.99. Interpreting that, we go from 3 cents an ounce to 5.3 cents per ounce, a 60% increase almost overnight.
Forward to 2009 and milk and sugar prices are within 5% of their pre-price increase. Transportation costs have been reduced. Wages have gone up an average of under 4%, yet we now find that brand name ice cream is selling for $4.99 and the container holds 48 ounces. Per ounce that’s 10.4 cents, more than 3 times the cost it was three years ago. Expenses have, perhaps, risen 10% during that time.
How do companies justify that?
In a recent news article, dairy farmers are complaining that they are receiving less than 50% of last year’s prices for raw milk. Processed milk has come down considerably recently, possibly by as much as 25%. Yogurt and cottage cheese have also seen a slight price drop. But other dairy products have seen price increases. Cheese is up almost 25%. Bakeries are charging more citing increase milk costs. (Eggs are currently selling at the lowest in several years. Sugar and flour wholesale prices are down as well.)
Yet store brand ice cream, store brand cheese, yogurt, sour cream, and other dairy products have seen drastic price reductions. Bakery products continue to increase in price. If you ask why – you get the standard reply: “Cost of ingredients have increased.”
Bananas? There was a blight in the Cavendish bananas that we typically see in the stores. It’s one of hundreds of types of bananas, the one that we’re used to eating. Prices increased dramatically between 2006 and 2008 as a result of shortages and the cost of research to improve the crop. This has paid off, as the 2009 harvest is bountiful. WalMart has reduced prices from a high of 69-cents to 42-cents. Several box stores are down below that. Yet supermarkets, now that people are used to 69-cents, have generally refused to lower their prices.
Public congratulations must go to cereal companies. Their prices, which rose in 2005-6 due to the amount of corn diverted to ethanol, stabilized once the price of ingredients did. Recently we have seen sale prices reflecting levels not seen in over ten years. Post and Kellogg cereal, same size boxes (and occasionally promotional bonuses) can be seen for under $2.00, less than half the 2007 price.
A few weeks ago we compared advertising to magician tricks – now you see it, now you pay twice the price. Deception through subtraction applies to advertising pictures as well. Have you ever compared a store’s ad picture to the real thing? They show huge English muffins holding overflowing egg-and-cheese sandwiches. In actuality, they usually picture the pre-cooked items. Once prepared and handed to you, they may be half the size.
Last winter a national chicken restaurant was advertising 12 pieces for $9.99 (with all the trimmings), 83-cents per piece. Now they have a great deal for you – 16 pieces for only $19.95. That’s a price increase of 42 cents per piece of chicken, a 50% increase. A slightly larger quantity for a considerably larger price.
Tuesday, September 1, 2009
Consumer Safety & Awareness Part 33
Advertising Scams
(Part 7 – Deception Through Addition)
Billy Mays was a super salesman. His products may have caused some of us to blink twice, and his $19.95 prices rarely varied. Whenever you saw him you’d wait for the punch line, “But wait, if you buy now….” He’d throw in a second item, or sometimes something totally unrelated. But Mr. Mays was always honest about the price. You saw the cost of shipping and handling right in his advertisement and the free items never created additional costs.
Mays and his partner, Anthony Sullivan, have had many imitators, and some of them practice deceptive advertising. They are easy to spot if you are paying attention. One item for the set price (usually $19.95, far below the value they say it’s worth) and lots of added bonuses. The catch comes at the end, and rapidly, “for additional shipping and handling.”
Thus the product, at perhaps $19.95 and $6.50 S & H, may be something you want, and the extras may be nice, but there may be three added items, each worth a few dollars, and each with an additional $6.50 S & H. There have been several of these deals where the total cost is over $50. While you can return the items and get your original $19.95 back, you cannot get the S & H refunded and you have to pay return costs (and possibly a restocking fee).
Another deception through addition practice, one that works so well that we’ve seen more than 100 companies use it, is to offer a product for free, with a small S & H charge. They only accept credit card purchases. In the small print, possibly not even in the original ad, but included in the documentation you get with the product, you have become enrolled in their “purchase club,” and will continue getting the product until you cancel it.
ProActiv, a skin care product, offers their product on television, in newspaper and magazine ads, and through web sites. You purchase their main product, get free bonuses, and you believe that’s the end of it. What you may not see is their small print, usually two to five levels down on pages you may never consider visiting. What you eventually find is:
“When you order our 3-Step System, alone or with additional products, you're automatically enrolled in the Proactiv® Solution Clear Skin Club: your passport to a variety of exclusive benefits designed specially to give you a clear advantage over acne.”
And…
“There's no minimum number of kits to buy, and you can cancel at any time.
· Never worry about running out or forgetting to reorder
· Every 60 days, receive a 2-month supply of your Proactiv Solution kit (less your free bonuses). Your credit card will be billed, plus shipping and handling, for each 60-day supply.”
Perhaps you did not expect to get another shipment, ever. But if you do not cancel prior to the second shipment going out, you’re stuck with it. ProActive may be an honest company with a good product. We do not make such judgment calls. What we do not like is their sales technique.
Yet it works so well that it has been imitated by companies that are very deceptive, yet stay within the law. Enzyte, “the number one selling supplement for natural male enhancement,” offers a free 30-day supply with $5.95 S & H. Only if you look closely you will find…
“*With your trial order today, you are enrolling in our free ViaLife Rewards Program. Approximately 1 week before your current cycles run out we will begin shipping you regular bi-monthly 60 day cycles and your credit card will be charged $79.90. Membership includes guaranteed free shipping plus special offers on other Vianda brands.”
Notice the asterisk? That tiny * will be very easy to overlook in their huge ad.
Before making any purchase from a television, print, or web advertisement, do your research.
(Part 7 – Deception Through Addition)
Billy Mays was a super salesman. His products may have caused some of us to blink twice, and his $19.95 prices rarely varied. Whenever you saw him you’d wait for the punch line, “But wait, if you buy now….” He’d throw in a second item, or sometimes something totally unrelated. But Mr. Mays was always honest about the price. You saw the cost of shipping and handling right in his advertisement and the free items never created additional costs.
Mays and his partner, Anthony Sullivan, have had many imitators, and some of them practice deceptive advertising. They are easy to spot if you are paying attention. One item for the set price (usually $19.95, far below the value they say it’s worth) and lots of added bonuses. The catch comes at the end, and rapidly, “for additional shipping and handling.”
Thus the product, at perhaps $19.95 and $6.50 S & H, may be something you want, and the extras may be nice, but there may be three added items, each worth a few dollars, and each with an additional $6.50 S & H. There have been several of these deals where the total cost is over $50. While you can return the items and get your original $19.95 back, you cannot get the S & H refunded and you have to pay return costs (and possibly a restocking fee).
Another deception through addition practice, one that works so well that we’ve seen more than 100 companies use it, is to offer a product for free, with a small S & H charge. They only accept credit card purchases. In the small print, possibly not even in the original ad, but included in the documentation you get with the product, you have become enrolled in their “purchase club,” and will continue getting the product until you cancel it.
ProActiv, a skin care product, offers their product on television, in newspaper and magazine ads, and through web sites. You purchase their main product, get free bonuses, and you believe that’s the end of it. What you may not see is their small print, usually two to five levels down on pages you may never consider visiting. What you eventually find is:
“When you order our 3-Step System, alone or with additional products, you're automatically enrolled in the Proactiv® Solution Clear Skin Club: your passport to a variety of exclusive benefits designed specially to give you a clear advantage over acne.”
And…
“There's no minimum number of kits to buy, and you can cancel at any time.
· Never worry about running out or forgetting to reorder
· Every 60 days, receive a 2-month supply of your Proactiv Solution kit (less your free bonuses). Your credit card will be billed, plus shipping and handling, for each 60-day supply.”
Perhaps you did not expect to get another shipment, ever. But if you do not cancel prior to the second shipment going out, you’re stuck with it. ProActive may be an honest company with a good product. We do not make such judgment calls. What we do not like is their sales technique.
Yet it works so well that it has been imitated by companies that are very deceptive, yet stay within the law. Enzyte, “the number one selling supplement for natural male enhancement,” offers a free 30-day supply with $5.95 S & H. Only if you look closely you will find…
“*With your trial order today, you are enrolling in our free ViaLife Rewards Program. Approximately 1 week before your current cycles run out we will begin shipping you regular bi-monthly 60 day cycles and your credit card will be charged $79.90. Membership includes guaranteed free shipping plus special offers on other Vianda brands.”
Notice the asterisk? That tiny * will be very easy to overlook in their huge ad.
Before making any purchase from a television, print, or web advertisement, do your research.
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