Advertising that is not clear, let alone intentionally deceptive, hurts responsible businesses and their customers. The BBB has always encouraged companies to make advertising claims that are accurate, complete, and clear. At the same time, it is important that consumers pay attention to advertising. If something is not clear, ask questions.
To keep a level playing field, the BBB offers businesses and consumers advice on five commonly used advertising clauses that can be misleading when not used properly.
“Free”
The word “free” may be used in advertising whenever the advertiser is offering an unconditional gift. If the shopper has to purchase an item in order to receive the free gift, the advertiser must clearly and conspicuously disclose the conditions. Also, an advertiser may not increase the price of the purchased item, nor decrease quantity or quality in conjunction with the free offer.
“Save up to…”
Price reduction claims that cover a range of products or services should state both the minimum and maximum savings without a misleading emphasis on the maximum savings. Also, the number of items available at the maximum savings should typically comprise 10 percent of the items being sold unless local or state law requires otherwise.
“Lowest price in town…,” “Our prices can’t be beat…,” etc.
Prices for products and services fluctuate regularly and it can be extremely difficult for an advertiser to claim with certainty that their prices are lower than all of their competitors.
“Best,” “Most,” “Tops,” and other superlative claims.
Obvious use of puffery, such as an advertiser stating they think they offer the best customer service in town, may not be subject to truth-in-advertising standards. However, advertising is all about trust from the consumers perspective and businesses should be vigilant against making subjective superlative claims that are misleading.
“Factory direct,” “Wholesale prices,” “Direct from the maker,” etc.
Claims such as these imply significant savings from the actual price being offered by retailers. These claims should not be made unless the implied savings can be substantiated. Furthermore, claims such as “factory to you” or “factory direct” should not be used unless the advertiser actually manufactures the merchandise or owns the factory where the advertised products are made. Similarly, an advertiser cannot falsely claim to be a wholesaler, nor can an advertiser claim to offer “wholesale prices” or items “at cost” unless the items are being sold at the same price as would be purchased by a retailer for resale.
*Use of Asterisks
Asterisks can be used in advertising if they offer additional information about a word or term that is not inherently deceptive. However, an asterisk or similar reference symbol cannot be used as a means to contradict or substantially change the meaning of some other part of an advertising statement. If the claim results in a consumer ending up with an inaccurate understanding, asterisks are insufficient for correcting the misinformation.
To see the BBB Code of Advertising visit: http://www.bbb.org/us/code-of-advertising/. Business owners and consumers can file a complaint regarding questionable advertising claims at www.bbb.org.
