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Advertising:
Are You Legal?
By Tom Egelhoff
If
the time has finally come for you to begin advertising your business
in print or other media, there are several pitfalls awaiting
you if you don't adhere to certain legal procedures.
Each year our courts seemed to be packed with frivolous law
suits. Even if it never gets to court the expenses of being prepared
can break your bank account.
If you can use an advertising agency, part of their responsibility
to you, is to make sure you don't put anything about your business
out in public that is illegal or misleading.
If you can 't afford an advertising or marketing agency, or
just want to do it yourself, here are some points to keep in
mind that will keep you off the front pages of your local paper
and out of the police reports.
- What is a Sale? From
the customer point of view, a sale is a temporary event. It has
a start date and and end date. Sales rarely last over 30 days.
Most are week-ends or even one-day sales are common.
The start and end dates must be clearly listed in the ad. If
you are having a Going Out Of Business Sale (Heaven forbid) some
states require you to register with a local consumer protection
agency, and you may be required to get a permit to have your
sale.
Note: Not a legal issue but a possible money saver --
Don't just make the last day of the month the end of the sale.
For example: July ends on a Friday. If you end your sale on July
31st, that means no sale traffic in your business on Saturday,
August 1st or Sunday, August 2nd.
Even if you extend the sale to customers physically in your business
on those days your advertising says the sale ended on Friday.
If your competitors are running a corresponding sale, the smart
ones, will end theirs on August 2nd and steal two days worth
of business from you.
- Save, Save, Save
We've all seen the ads, "Save up to 50% during our store
wide widget sale!" You cannot offer or claim to offer a
"percent off" of a product unless a "significant"
amount of the product was sold in your store at the full retail
price. Or a reasonable comparison product exists at a competitors
business and are reasonably near the retail price. You must also
show the full retail price you sold the product for originally
compared to the sale price.
- We have the lowest price - Guaranteed!
No business can legitimately claim to have the lowest prices
on all items in the store all the time. You must prominently
display the terms of your "low-price guarantee" and
how you intend to match or better competitive prices.
When I was a salesperson at Circuit City (the electronics retail
giant) we gave each customer a copy of their "low-price
guarantee" when we greeted them. If gave complete details
on how the guarantee worked. My guarantee for the books and articles
on this site is very simple if you're not satisfied after 30
days, you get your money back, no questions asked.
- T's and C's: Terms and Conditions
or Disclaimers
Before you offer a warranty or guarantee on a product or service
you carry, you must spell out completely the terms and conditions
under which you will honor that guarantee or warranty.
Any conditions for free merchandise, free services or credit
must also spell out the conditions to the customer. Car dealers
may offer a free gift for a test drive. In many cases the driver
must be 25 or older and must prove they can afford the car before
the free gift will be delivered.
- We are so much better than the competition
If you say you're better, you better be able to back it up in
writing and variable proof. We have a Harley Davidson dealer
in Belgrade, Montana, just 8 miles from Bozeman. Belgrade is
around 8,000 people.
As you drive into Belgrade there is a billboard that says, "Yellowstone
Harley-Davidson, The largest Harley-Davidson Dealer in Belgrade."
It's True. They are also the only dealer in Belgrade. Saying
you're big, wonderful or great is so generic it's seldom challenged.
It's the specific comparisons you need to watch.
If you feel your competitors are violating any of the above,
and most of you probably will, contact your local Better Business
Bureau. See if any complaints have been made against them and
what action has been taken. Add your complaint to the list and
ask them to investigate the complaint.
It's usually in their best interest to stop what they are
doing rather than face an investigation and adverse publicity.
If you are in doubt about your advertising, consult an attorney.
It's money well spent. Have him look at your yearly campaign
if you have one. Remember, honest is always the best policy.
(Return
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This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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