Recently, a mailer was sent out that advertised a FREE service valued at over $800. A consumer called and asked how it could be free. The answer… “It wasn't.” Sometimes, consumers get so caught up in the excitement of a valuable product or service being offered at a free or reduced rate that they forget to ask this very important question. Of course, the advertisement says “free” so how could it not be, right?
Technically, businesses should not use the word at random, unless you truly mean it. There are exceptions though. Frequently in advertisements, businesses will promote something as being “free,” but then in order to get the product or service, there are accompanying fees. This practice is not uncommon and is used in various industries.
It is not acceptable to mask or to try and hide costs with small print or confusing verbiage. The BBB Code of Advertising specifically says that if a “free” offer is contingent upon another purchase, this fact must be stated “clearly and conspicuously together with the offer.” The use of an asterisk next to the word “free” referencing a footnote is not an acceptable practice.Do you offer anything for free? How do you advertise it?
Small business owners often have to add the title of Advertising and Marketing Director to their long list of duties and may not be aware of the various laws regarding common advertising claims. Creating an effective advertising strategy isn't just about where and when ads are placed, but also what claims are being made.
The following are six examples of commonly used phrases and tactics in advertising that are often 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. Additionally, free offers should not be advertised when the item to be sold is customarily a negotiated-priced item such as an automobile or home.
“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 comprise typically 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 their competitors. Such claims should be avoided unless the advertiser can provide substantiation.
“Best,” “Most,” “Tops,” and other superlative claims.
Superlative claims can be objective, based on fact, or subjective, based on opinion. Objective claims relate to tangible qualities and performance which can be measured against accepted standards. When making objective claims, an advertiser must be able to substantiate all 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 consumer’s 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 the statement. The information referenced by the asterisk should also be clearly and prominently disclosed.
If you have a website for your local business and would like to attract more customers to your store front or if you sell a service to local people in surrounding towns and would like to get more leads, adding your business to Google Maps is a cost effective way to get these customers and leads. - If you haven't already claimed your local Google Places/Map listing, do that now. Just do a search on Google for "Google Business Directory" or click this link: www.google.com/placesforbusiness/ and list your business.
- You want to find all the searches that result in Google showing their local business directory. Google's local listings don't appear for all searches, so you need to do some research to find out which keywords or phrase make them show up. Example: If your a plumber try a search for plumber, or plumbers. If there isn't a local result for that, try adding your town like: "Boston Plumbers" or Plumbers in Boston MA". Find all the keyword phrases that produce a Google Maps result for your industry, include other town names in your service area.
- Create one page for each phrase or keyword that Google shows their local directory listings for on your website. The best way to do this is to incorporate a blog on your website. If you do not have a blog, this is an easy addition. Write one new blog post a week about the keywords and phrases you found trigger the local maps listings. You could write a post about a job you did in that town, include reviews and testimonials from people you serviced in the town, include pictures of the job, whether or not you pulled a permit, what traffic was like in the area, etc. Make sure each page is about the single phrase or keyword. It should be the first words in the title of the page, include it in the "alt" text of an image on the page, and you page content should be somehow relevant to the phrase.
PRO TIP* Start by writing about towns that are recession proof, neighborhoods where the median income is above average, and where you aren't likely to have many DIY types.
A Google places listing is free, advertising does not get any more cost effective than that. Free is Good! showing up for searches by locals in your home town will certainly get you some leads every year. But, showing up in 10-20 local towns will get you enough work to stay busy every week.
Michael Kern is the Founder of Inform Local, a BBB Accredited Business since 2012.
