It seems natural that businesses, fearing the negative effects of a recession, attempt to gain a greater share of discerning consumers through aggressive advertising. However, the BBB still requests that businesses make a concerted effort to stay honest with their marketplace offers.
As the BBB continues to request consistent advertising substantiation, it remains apparent that pricing claims continue to be the most prominent advertising tool in the marketplace fight for consumer dollars.
The following is a sampling of results of recent ad review cases that have been closed in our area:
Best Prices Storable Foods
Challenged: Best Prices
In August, the BBB challenged a Dallas-based storable-food retailer with a name that implies it sells its merchandise at the lowest price.
The BBB Code of Advertising states that, “despite an advertiser's best efforts to ascertain competitive prices, the rapidity with which prices fluctuate and the difficulty of determining prices of all sellers at all times preclude an absolute knowledge of the truth of generalized underselling/lowest price claims. Advertisers should have proper substantiation for all claims prior to dissemination; unverifiable underselling claims should be avoided.”
Although the term “best” is often regarded as a subjective term, previous BBB casework has determined that the specific combination of the terms “best” and “price” can lead average consumers to believe a company is offering the lowest price.
The BBB asked the company to discontinue or modify its advertising to comply with the BBB Code of Advertising.
The company has communicated that it will not discontinue or modify its advertised name.
Best Prices Storable Foods has a BBB rating of “F” for failing to cooperate with the BBB on advertising matters.
Craftmade International
Challenged: Packaging Disclosure
In July, the BBB contacted Craftmade International, a Dallas-based fan and lighting manufacturer, regarding the packaging of their porch fans.
Specifically, the BBB noted that the box in which their porch fans are sold includes pictures and language which implies that the fan blades are included. Additionally, the box did not include any language to disclose to consumers that the fan blades are sold separately.
The BBB Code of Advertising states that, “the composition and layout of advertisements should be such as to minimize the possibility of misunderstanding by the reader. For example, prices, illustrations, or descriptions should not be so placed in an advertisement as to give the impression that the price or terms of featured merchandise apply to other merchandise in the advertisement when such is not the fact.”
After several discussions with the company, Craftmade International has failed to communicate any intent to modify its advertising to adhere to the BBB’s Code of Advertising.
Craftmade International has a BBB rating of “F” for failing to cooperate with the BBB on advertising matters.
Golfsmith Golf Center
Challenged: “Lowest Prices in Dallas”
In July, the BBB contacted Golfsmith Golf Center to request that it substantiate its claim of having the “lowest prices in Dallas.”
As noted above, the BBB’s Code of Advertising states that, “advertisers should have proper substantiation for all claims prior to dissemination; unverifiable underselling claims should be avoided.”
The company originally responded to our request for substantiation. However, the company has since failed to provide any information to substantiate its claim or communicate its intent to discontinue the use of the advertised claim.
Golfsmith Golf Center has a BBB rating of “F” for failing to cooperate with the BBB on advertising matters.
Lewisville Mitsubishi
Challenged: “Free Tires for Life”
In August, the BBB contacted Lewisville Mitsubishi to request that it discontinue or modify its “free tires for life” offer.
According to the BBB’s Code of Advertising, “in a negotiated sale no "free" offer of another product or service should be made where the product or service to be purchased usually is sold at a price arrived at through bargaining, rather than at a regular price.”
Regarding this case, it is important to note that vehicles are usually sold at a negotiated price.
The company responded to the BBB’s request, and agreed to discontinue the “free tires for life” offer.
Although the company cooperated with the BBB’s Advertising Review Program, Lewisville Mitsubishi has a BBB rating of “D-” for failing to respond to a complaint filed with the BBB.
-- By David Beasley, Director of Ad Review
To fulfill the original mission of the BBB, the BBB in Dallas conducts a local advertising review program. This program works with business to achieve the highest ethical advertising standards through self-regulation.
Your BBB consistently seeks and challenges advertising that appears deceptive or suggests unethical business practices. The BBB Code of Advertising, as a subset of the Code of Business Practices, outlines basic principles and specific guides for truth and accuracy in advertising. When an ad is challenged, the BBB asks the advertiser to substantiate, modify, or discontinue the advertised claims. If an advertiser is unable to substantiate the claims or declines to discontinue claims not in adherence to the BBB Code of Advertising, then that information is included in the Bureau’s report on the business.
See the BBB Code of Advertising at www.bbb.org/us/code-of-advertising/.
To learn more about local advertising review, including how to file a complaint, click here.