During the next few weeks, many businesses will advertise seasonal specials and sales to attract holiday shoppers. Most ads are straightforward and provide helpful information for customers.
However, the Better Business Bureau (BBB) often receives complaints this time of year about misleading ads. BBB wants you to know how to make certain your holiday advertising meets BBB standards and keeps your customers cheerful throughout the season.
Checklist for appropriate advertising:
➊ A “sale” is defined as a significant reduction from the usual price of an item. If the sale price is offered for more than 30 days, this becomes a regular price, and the item should not be advertised as “on sale. ” There should also be a clear end date to any sale.
➋ Price reduction claims like “save up to” 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 equal at least 10 percent of the items being sold.
➌ Only advertise “free” if you plan to offer an unconditional gift. If your customers have to purchase an item in order to receive the free gift, you must clearly disclose this without using an asterisk (*) or a footnote.
➍ Avoid claims such as “lowest prices in town” and “our prices can’t be beat.” Prices for products and services fluctuate regularly, and it can be extremely difficult to claim with certainty that your prices are lower than those of all competitors. If you advertise that you will “meet all competitors’ prices,” make sure the terms and conditions are easy to follow.
➎ Use statements like “top rated” and “No. 1” only if they can be proven objectively with facts or are validated by a neutral third party. Claims based on a company’s opinion are subjective and potentially deceptive to customers.
➏ Do not advertise “wholesale” prices unless the prices your customers pay are the same prices you paid when you bought the merchandise for resale. Also, avoid using the phrase “factory direct” unless your merchandise is actually manufactured in factories you control or own.
BBB reminds business owners that while the primary responsibility for truthful advertising rests with you, BBB staff is here to help if you have questions related to your holiday ads. You may contact your BBB at 512-445-4748 or consult BBB’s Code of Advertising online at www.bbb.org/us/code-of-advertising.
BBB’s mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior. For more information, please contact Kristi Pena, BBB regional PR manager, at 361-852-4991.
