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Is your company’s advertising overstated?
By Lauren | October 26, 2009
We’ve all seen and heard it before: “New!!” “Improved!!!” “BIGGER!!!!” “BETTER THAN EVER!!!!!” But can consumers really trust those claims? How much better does a product have to be to be legitimately called “new” or “improved”? And who decides?
The National Advertising Division of the Council of Better Business Bureaus reviews product advertising when companies get a little too enthusiastic about hawking their merchandise. The NAD occasionally examines ads on its own but, more often, serves as an independent decision-maker when competitors challenge each others’ advertising. After making almost 5,000 decisions in advertising disputes, the NAD has developed definitions for several of the more common advertising claims such as “new,” “improved,” and “on sale.” They also let companies know when they’ve gone too far in bashing their competitors’ products. When the NAD decides that an advertiser’s claim is invalid, over 95% of companies voluntarily change their ads. Those few that don’t get referred by the NAD to the Federal Trade Commission, where they can face severe penalties if the agency determines that they’ve exaggerated their advertising.
It’s great to know that that the NAD is actively monitoring what companies promise consumers. It’s also a shame that it needs to do so. To maintain consumer trust, companies should be careful not to exaggerate the benefits their products can deliver. (Overpromising is also a great way to end up in court if your product actually injures consumers.) It’s a good idea for the folks who are responsible for your company’s advertising to be familiar with NAD’s standards. But it’s an even better idea to make sure that consumers who read your ads are, if anything, pleasantly surprised when they use your products.
Topics: Business Ethics, Risk Management, business communications, corporate responsibility, customer relations, ethics |