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by Aaron Reese

10/22/09

Kansas City, MO - Advertising provides businesses a unique ingredient of successful business models, an ingredient on which all future transactions hinge. It provides customers that invaluable first impression of a business, and gives the public their first look at a product. Businesses want to make good first impressions, of course. They take special care to lay out their ads with language and graphics that specifically appeal to consumers who would most benefit from their products or services. Unfortunately, in an overzealous effort to stay competitive, some businesses create ads that strain the bounds of fairness.

Colossal businesses have their own marketing and advertising directors, if not whole marketing teams and divisions. Without these advantages, small business owners often must rely on themselves to create advertising that not only makes a good first impression, but also abides by local and federal laws. It can frustrate the most competent business owners to create advertising that shows off the benefits a product while consciously maintaining fairness. Even some of the most experienced marketing teams in the world lose track of the difference between appealing and misrepresentative. To help businesses successfully navigate their way around treacherous advertising pitfalls, the BBB has compiled some tips that should make the process less strenuous and more rewarding.

First and foremost, advertising needs to be honest. The last thing a business owner wants is for consumers to believe he is disingenuous. This may seem like the easiest guideline to follow, but a glance in the local newspaper reveals enough misleading ads to suggest otherwise. Dishonest claims frequently have a kernel of truth that the advertiser believes is enough to make the whole ad truthful. When reviewing an ad for veracity, the advertiser must ask himself if a reasonable consumer will think it is fair. If the answer is, “it’s not that bad,” it is best not to run the advertisement as is. The ad needs further revision.

Similarly, an ad can be deceptive even if everything in it is true. Both the Federal Trade Commission and state Attorneys General act upon the policy “even if everything in the advertisement is true, the advertisement as a whole can be deceptive.” The policy is in place because a series of images and words might be innocent when considered separately, but when combined they form a misleading concept. This occurs when advertisers leave out important information that considerably modifies the meaning of the advertisement. When struggling to cram a tiny advertising space with relevant information, an advertiser’s first instinct is to cut what does not dazzle consumers. This can lead to the excision of pertinent information resulting in an advertisement that conveys an inaccurate depiction of products or services. Because the definition of “pertinent” is different for each person, the advertiser must do his best to consider the reaction of the “typical” consumer.

Typical consumers are reasonable individuals capable of interpreting sales promotions and discount ads. If an ad gives information (or leaves it out) in a way that confuses reasonable consumers, an advertiser may face legal consequences. Evaluating the reasonable consumer’s reaction may be the most difficult part of advertising. The writer of the ad knows the message he is trying to convey, which obscures his ability to see other possible interpretations. This situation can usually be avoided by showing the ad to a few friends or associates before it is published. Some businesses go as far as hiring advertising attorneys to point out possible inaccuracies or deceptive language. It is also an option to run it through the Better Business Bureau’s Ad-Review process before publication.

Accounting for “typicality” does not end with the consumer’s reaction. It also applies to results given by products and services. An advertisement should show consumers what they can typically expect. If the best results from a product or service are achieved only one out a hundred times, the best results should not be advertised without a clear explanation of general results.

A rather innocent advertising problem comes when the advertiser forgets about an advertisement. Companies forget to change ads and end up advertising products or services they no longer offer. Promotions will end and advertising will still display unavailable products and inaccurate prices because no one thought to update the ads. It is a good idea for business owners to set aside five or ten minutes a week to ensure their published material is up to date. When placing an ad in a yearly or extended period publication, advertisers should be sure that the ad remains as consistent as possible until the next installment of the publication—barring unforeseen changes, of course. In other words, it is a bad idea to advertise a three-month sale in a year long ad.

Testimonials may cause more trouble than they are worth, so advertisers need to be careful when using them. It is natural to assume one can use a quote from a satisfied customer. In most cases, this is true. However, advertisers need to be aware of a few things before they post reviews from elated customers. Endorsements and testimonials should represent the typical experience of customers. That does not mean that every person should be as pleased with the product as those giving testimonials. It means that consumers should expect the results that made the endorser so pleased.

If an advertisement uses expert testimony attesting to the benefits of a product, the expert must be qualified in the field about which he is speaking and represent the general opinion of those in his field. It works the same way with studies or polls. If an advertiser uses an obscure poll to prove a point, when all other polls contradict it, the advertisement is unsubstantiated.

These tips are far from comprehensive, but will help small businesses avoid common complaints and possible government involvement. If a business owner is unsure whether something in his advertising is misleading, he can always check the various consumer protection agency websites or call the Better Business Bureau for more information.