Fine Print
There was a lot of buzz last week over the FTC’s new guidelines for endorsements and testimonials. Reviews are mixed, but a big positive in the new guidelines is eliminating the “results not typical” disclaimer many businesses use.
You’ve seen the diet ads featuring a celebrity or consumer making an amazing weight loss claim and then use the disclaimer “results not typical” in fine print. It’s the kind of claim that’s been giving advertising a bad image ever since advertising began. Now, if they use such testimonials, they will have to disclose the results that consumers can reasonably expect. Wow, now they have to be real.
Don’t Use Mail-In Rebates Either
Mail-in rebates aren’t covered in the new FTC guidelines, and they shouldn’t be. They’re still deceptive. You see this big ad for a low price on something, and then find the mail-in rebate in fine print. The businesses that offer these know that a certain number of people will forget, and they make it cumbersome for customers to file for the rebate to help discourage redemption. That’s irritating and no way to build customer loyalty. Either offer a discount or don’t.
A couple of weeks ago it was time to get new cell phones for my sons. We went to the AT&T Store. The boys found the phones they wanted. The price on the sign made the phone look really affordable. The boys found the phones they wanted. The price on the sign made the phone look really affordable. Then came the fine print: with mail in rebate.
The saving grace in this situation that the sales person was kind enough to print a copy of the customer receipt and peal off the original UPC code that was required. Basically, he stapled everything together for me so all I had to do was mail it in. Outstanding service by him, but AT&T gets a doofus grade for making the price dependent on the mail-in rebate.
Make An Offer And Stand Behind It
You don’t have to make a huckster claim to get attention and cause people do want to do business with you. Make an offer that means something to the customer and back it up.
I have a client in the home improvement business. One of their manufacturers has a new product with a 15 year warranty, except it’s not a “true” 15 years. The warranty is filled with fine print. It’s really a pro-rated warranty that doesn’t sound so good when you read all the way through it. The lawyers are happy, but the customers won’t be. The thing is that it’s an excellent product. It would stand-up for the 15 years in more cases than not. They’re just running scared.
Bottom line: if you have to resort to gimmicks, you’ve got nothing. Find ways to be remarkable to your customers without hiding behind fine print. You’re bottom line will thank you and your customers will too.
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