...To aid South Plains businesses in adhering to truth in advertising
When advertising works as it should, consumers purchase products and services, companies profit, and an important phase of the American free enterprise system is carried out. But some companies are not aware of just how important accurate, truthful advertising is to their firms and to business. If facts are stretched or the truth bent, the public will lose trust in business and the economic system will break down.
The Better Business Bureau of the South Plains, Inc. (BBB) and the Lubbock Advertising Federation (LAF) want to help business strengthen consumer trust in advertising. And, they want to help advertisers prevent problems with regulatory agencies (the District Attorney, Attorney General and the Federal Trade Commission).
To help advertisers get and keep customer confidence, and to help them prevent legal problems, the BBB developed these guidelines -- they are time-tested and many evolved from FTC rulings. They are all clear-cut, simply stated, and practical: THEY WORK.
Use of these guidelines is not a guarantee a company will be successful. But, they will promote accuracy, fairness, and consumer trust.
These basic advertising standards have been prepared to provide guidance for advertisers, advertising agencies, and advertising media.
The BBB uses the following principles, which are condensed from a Supreme Court decision, in the evaluation of advertising:
Advertising as a whole must not create a misleading impression even though every statement separately considered is literally truthful. Advertising must be written for the probable effect it produces on ordinary trusting minds, as well as for those intellectually capable of penetrating analysis.
Advertising must not obscure or conceal material facts. Advertising must not be artfully contrived to distract and divert the reader's attention from the true nature of terms and conditions of an offer. Advertising must be free of fraudulent traps and stratagems which induce action which would not result from a forthright disclosure of the true nature of an offer.
Also, from the BBB viewpoint:
* Misrepresentation may be not only by direct statement, but by commission of or failure to state a material fact. * No advertiser should make any statement or claim in advertising unless he has proof of such claim. * The burden of proof of advertised statements and claims rests on the advertiser.
1. COMPARISON WITH AN ADVERTISER'S OWN IMMEDIATELY PRECEDING SELLING PRICE
When an advertiser's own immediately preceding selling price is used as the basis of a savings claim, the advertiser should be certain that the price is the actual price at which he has been offering the item for sale on a regular basis for reasonably substantial period of time.
Descriptive terminology often used by advertisers includes:" regularly," "was," "formerly," and "original" (if the original price is not also the last previous price, that fact should be disclosed by stating the last previous price, and revealing that there have been intermediate markdowns).
Advertiser's own immediately preceding selling price claim would be fictitious if the former price: is artificial or inflated (i.e., established for the purpose of enabling the subsequent offer of a larger reduction); is an "asking" price, without making disclosure of that fact; is not the advertiser's own immediately preceding selling price, without making disclosure of the fact; was not maintained for a reasonable period of time (i.e.; item was placed for sale, then immediately reduced).
An advertiser should not use a price comparison for one-of-a-kind merchandise. However, if an advertiser has actually offered a one-of-a-kind item for sale (for a reasonably substantial period of time, and in the recent, regular course of his business) one-of-a-kind items may be advertised, such as: "Former asking price $300, now $260."
2. COMPARISON WITH PRICES CHARGED BY OTHERS FOR THE SAME MERCHANDISE
When an advertiser claims he is selling the same article of merchandise (identical brand and quality) below the price others are charging, he should be certain that the price on which he bases his savings claim does not exceed the trade area price. For example, if the trade area price of Brand X ballpoint pen is $4.50, an advertiser could accurately advertise:
"Brand X ballpoint pen, priced elsewhere at $4.50, our price $3.38." Trade area price is defined as the current price at which a specific article of merchandise is selling in the trade area in principal retail outlets, the sales volume of which collectively constitutes a substantial (that is not isolated or insignificant) number of sales.
The trade area encompassed by these Guidelines is composed of 18 counties of the South Plains: Bailey, Borden, Cochran, Crosby, Dawson, Dickens, Floyd, Gaines, Garza, Hale, Hockley, Kent, Lamb, Lubbock, Lynn, Motley, Terry and Yoakum.
3. COMPARISON OF "SPECIAL PURCHASE" MERCHANDISE WITH ADVERTISER'S OWN SELLING PRICE FOR SIMILAR MERCHANDISE
When as advertiser makes a special purchase of merchandise which has not previously been offered for sale by the advertiser, he may make comparison with his own selling price for similar merchandise (identical brand and quality, but possibly a different style number) which he has been offering for sale in the recent, regular course of business.
"our price for similar sheets $5.50, special $4.49."
4. COMPARISON WITH NON-IDENTICAL SERVICE
Comparison indicating a service should not be made between two items if the price of one includes services such as delivery and installation while the price of the other does not includes identical services.
5. COMPARISON WITH NON-IDENTICAL MERCHANDISE
Comparison should not be made between the selling prices of non-identical merchandise.
6. COMPARISONS WITH "LIST," "CATALOG," "SUGGESTED" AND "PRE-TICKETED" PRICES
Comparisons with "list," "catalog," "suggested," and "pre-ticketed" prices for an item should not be made if such prices exceed the advertiser's immediately preceding selling price or the trade area price.
7. DISCLOSURE OF COMPARISON BASIS
If prices, other than the selling price, are used in an advertisement, the basis or source of such prices should be clearly disclosed.
"$100, now $89.95," would be incorrect
Likewise, any claim of savings, such as "$100 off" or "save 25%" should not be used unless qualified with a statement describing the basis of the savings.
8. COMPARISON OF NEW AND USED MERCHANDISE
The price at which the advertiser has been offering used merchandise during the recent course of business should be the basis of any savings claim made for used merchandise.
The price of used merchandise should not be compared to the price of new merchandise.
9. "SALE", "SPECIALS"
The unqualified term "sale" may be used in advertising only if there is a significant reduction from the advertiser's usual and customary price of the merchandise offered and the sale is for a limited period of time. If the sale exceeds thirty days the advertiser should be prepared to substantiate that the offering is indeed a valid reduction and has not become his regular price.
10. "UP TO" AND SIMILAR EXPRESSIONS
Savings or price reduction claims covering a group of items with a range of savings shall state both the minimum and maximum savings. The number of items available at the maximum savings shall comprise at least 10% of all items in the offering.
11. "FREE" MAY BE USED IN ADVERTISING IF:
1. The product or service is an unconditional gift, and
2. All conditions, obligations, or other perquisites to the receipt and retention of the "free" article of merchandise or service offered are clearly and conspicuously set forth at the outset so as to leave no reasonable probability that the terms of the offer will be misunderstood.
In those cases where merchandise is required to be purchased in order to obtain a "free" article or service. the ordinary and usual price of the article should not be increased; the quality of the article of merchandise should not be reduced; the quality or size of the article of merchandise should not be reduced
The offer of the "free" article should not be made on a continuing basis.
Equipment, accessories or other merchandise should be described as "free" if advertised products can be purchased at a discount or lesser price without such articles.
If the selling price of a product has been increased in order to cover part or all of the cost of items being offered with the purchase of a product, the item or items should be advertised as being "included with the purchase," not as being "free."
An asterisk ( * ) or other symbol used next to the word "free" to indicate a footnoted qualifier is not considered compliance.
12. "WHOLESALE," "WHOLESALER," "WHOLESALE PRICES"
The terms "wholesale," "wholesaler," "wholesale prices," and others of similar import have been the subject of great abuse in advertising. Such terms should not be used unless the implied savings can be substantiated and meet all of the below requirements:
1. The terms "wholesaler," "wholesale outlet," and the like shall not be used unless the advertiser actually owns and operates or directly and absolutely controls a wholesale or distribution facility which sells products to retailers for resale.
2. The terms "wholesale price." "wholesale," and the like shall not be used unless they are the current prices which retailers usually customarily pay when they buy such merchandise for resale.
"Cost" is defined as the price the vendor pays to get the merchandise in stock, plus transportation, minus any known reimbursements, such as discounts, factory rebates, incentives, etc.
Where such discounts, rebates, incentives, etc. are anticipated but not known at the time of publication, a conspicuous disclosure of the fact should be made.
For example: "Notice--Our cost includes factory hold back and not a set factory cost price to us. Cost may also not reflect the ultimate cost of the merchandise in view of the possibility of future rebates, allowances, discounts and incentive awards from the manufacturer."
Any advertiser who utilizes a "cost" offer or statement should be able to substantiate both his definition of "cost" and the actual cost amount to the BBB on request.
14. "ONE-CENT" SALES
Advertisement of "one cent" sales generally offer one specified article for 1 cent provided two articles are purchased. To be bona fide offer:
1. The price of the merchandise required to be purchased and any other terms and conditions imposed in order to obtain the advertised article at 1 cent should be conspicuously disclosed in immediate conjunction with the offer.
2. Any price quoted for the article offered for 1 cent should be the advertiser's usual and customary retail price for the same article or the usual and customary retail price for the merchandise in the trade area.
3. Such sale must be for a limited time only. If continued indefinitely, they are not sales, but regular prices.
15. "PRICE" AND "50% OFF" SALES
If a "price" or "50% off" saving is claimed:
1. The terms or conditions of the sale should be disclosed in clear and concise manner;
2. The represented saving should be a reduction from the advertiser's usual and customary selling price for the article during the recent, regular course of business;
3. The price charged for any additional merchandise that is required for the savings should not be a fictitious price or a price inflated to created the illusion of a savings.
In cases where the merchandise offered has not been previously offered by the advertiser, the savings claim should be based on the usual and customary trade area price.
Such sales are for a limited time only. If continued indefinitely, they are regular, not sale prices.
16. "FACTORY-TO-YOU" PRICES
Unless all merchandise is actually manufactured by the advertiser in plants owned and operated (or directly and absolutely controlled) by the advertiser, statements such as:
"Factory to you"
"Manufacturer to consumer"
"Direct to you"
"Direct from maker"
are considered misleading and should not be used.
17. "NEW" AND "USED" ITEMS
Used, second-hand, returned or repossessed merchandise should be clearly and prominently described as such.
Whenever an advertiser is offering both "new" and "used" items for sale in a single advertisement, full disclosure should be made, including which items are new and which items are used or second-hand. A single statement in the advertisement that the items being offered for sale are new, used, repossessed, etc. is not acceptable.
18. PRODUCT REPRESENTATION
Advertisers should not advertise a product in any manner which has the capacity to mislead or deceive purchasers, or prospective purchasers, with respect to its utility, composition, construction, durability, design, quality, quantity, or number of pieces, models, origin, manufacture, grade or in any material respect.
19. MISREPRESENTATION AS TO CHARACTER OF BUSINESS
1. Advertisers should not represent, directly or by implication, in advertising, that they produce, manufacture, own or control a factory, when such is not the fact, or in any other manner misrepresent the character, extent or type of the business. That is, any advertiser should not claim that his firm is a factory, factory outlet, mill, wholesaler, or manufacturer, when, in fact, it is not.
2. The term "direct," when used to describe a method of buying or savings (such as "direct price," "we buy direct," "we buy direct and pass the savings to you," "buy like retailers do," and "selling direct to the public") should not be used, unless all of the following conditions are met:
* the merchandise has, in fact, been purchased direct from a factory, manufacturer or mill;
* the manufacturer or mill customarily sells merchandise differently than on a direct basis, (e.g., from manufacturer, factory, or mill to wholesaler to retailer);
* as a result of buying direct from a manufacturer, factory, or mill, the advertiser is offering an item of merchandise for sale at a price lower than other dealers selling the identical merchandise.
3. It is an unfair trade practice for a retailer to place a product in a dwelling and advertise it in a manner which might lead consumers to believe the products are being offered for sale by a non-retailer or individual. Such advertising, including classified newspaper advertising, should contain the name of the merchant or the term, "dealer". If an advertiser's business name does not clearly indicate the nature of his business, additional disclosure, such as use of the term "dealer" should be used to further protect the public from being mislead.
20. PRICE PREDICTIONS
Advertising of a price prediction in which a future selling price is stated (either as a percentage or in dollars) should not be used unless:
the time of the price prediction is stated;
the advertiser's selling price will, in fact, increase to the predicted price;
the predicted price is maintained for a reasonable period of time.
21. TIME-LIMITED SALES
Time-limited sales should be observed. "One day sale," "one week sale," " one month sale," etc., means that merchandise is either removed from the sales floor or reverts to a higher price on the day following the sale.
22. QUANTITIES OF ADVERTISED MERCHANDISE
1. An advertiser should advertise a sale item with full intent to meet reasonable and anticipated demands for it unless the advertisement discloses that the supply is limited or is available only at certain locations of the company.
"six only at each store"
"at mall store only"
2. When only one item is for sale, this fact shall be clearly disclosed.
23. CLAIMS OF LOWEST PRICE
Claims of "lowest price" based on prices charged by others should not be used in advertising.
24. UNDERSELLING CLAIMS
General underselling claims should not be used in advertising.
" our prices are guaranteed lower than elsewhere"
"we guarantee to sell for less"
"highest trade-in allowances"
"we will not be undersold."
Claims which merely imply that the advertiser always undersells competitors should not be used in advertising. Advertisers who make such claims seek to transfer the responsibility of proving the falsity of the implied claim to the consumer, whereas the responsibility for proving its worth should rest with the advertiser.
"never knowingly undersold"
"we meet all advertised prices"
"money refunded if you duplicate our value"
25. SUPERLATIVE CLAIMS-PUFFERY
Superlative statements, like other representations, are objective (factual) or subjective (puffery):
1. Objective claims relate to tangible qualities and performance values of a product or service which can be measured against accepted standards or tests. As statements of fact, such claims can be proved or disproved.
2. Subjective claims are expressions of opinion or personal evaluation of the intangible qualities of a product or service (e.g., taste, beauty, aroma, style). In general, they can be neither proved nor disproved.
The advertiser carries the burden of proof of any advertised statement or claims. The advertiser must be prepared to substantiate any claims or offers made.
26. "SECOND," "IRREGULAR," "IMPERFECT"
Consumers have a right to believe that advertised merchandise is first-quality merchandise unless there is a disclosure to the contrary. If merchandise is defective or rejected by the manufacturer because it falls below the specifications for his first quality or line, or if it is below such specifications for any reason, it should be advertised "second," "irregular," or "imperfect."
Terms other than "second," "irregular," or "imperfect" should be avoided in describing merchandise which fails to meet specifications of first-quality merchandise in consumer advertising.
No comparative price should be quoted in connection with an article offered for sale which is a second, imperfect or irregular, unless it is accompanied by a clear and conspicuous disclosure that such comparative prices refer to the price of the article "if perfect."
Merchandise should not be described as "discontinued" unless the manufacturer or the advertiser offering it for sale will discontinue offering it entirely after clearance of his existing inventory.
Any advertisement of "discontinued" should state whether it is the manufacturer or the advertiser who is discontinuing the item or product.
28. TRADE-IN ALLOWANCES
If trade-in allowance offers are used, they should be used in good faith, and should approximate the commercial worth to a dealer of the article traded in.
The offering of a fixed and arbitrary trade-in allowance regardless of the size, type, age, condition, or value of the article traded in, for the purpose of disguising the true retail price, or creating the false impression that a reduced price or a special price is obtainable only by such trade-in is unfair and misleading.
Unless otherwise clearly disclosed, trade-in allowances should represent an amount deducted from the advertiser's bona fide current selling price for the advertised article without a trade-in.
Trade-in allowance offers should not be used to disguise bona fide price reductions.
29. SERVICES-INSTALLATION, DELIVERY, IN-CARTON PRICES
Unless otherwise stated, advertised merchandise such as major appliances, furniture, etc., will be interpreted as meaning that delivery assembly, and normal installation are included for the advertised price, If such is not the case, full disclosure of any such charges should be made in a clear and concise manner. In printed media: In the advertising of a single item, this disclosure should be made immediately adjacent to any statement of terms of the offer or price in type large enough to be readily seen. When a number of items are advertised, this disclosure may be placed in a box, set in type no smaller than 8 point.
Phrases such as "in carton" used in advertising will be interpreted to mean that the customer must assemble and/or install the purchased merchandise. However, use of such items does not excuse the advertiser from disclosing that delivery and/or other services are not included, if such is the case. If there are extra charges for such service, they should be stated in a clearly understood manner.
Awards may be deceptive and misleading if:
1. The award is fictitious;
2. The donor is not qualified to make either an honest or proper selection in making the award;
3. The award is tainted by an ulterior purpose, motive, or profit of the donor.
In general, advertising which uses testimonials or endorsements is likely to mislead or confuse if:
1. It is not genuine and does not actually represent the current opinion of the endorser;
2. It is not quoted in its entirety but is "cut" for advertising purposes;
3. It contains representations or statements which would be misleading or deceptive if otherwise used in advertising;
4. It creates implications or inferences in the reader's, listener's or viewer's mind which are likely to deceive;
5. The endorser is not competent or sufficiently qualified to express an opinion concerning the quality of the product being advertised, or the rules likely to be achieved by its use;
6. The endorser is not actually a user of the product being advertised;
7. Whenever the endorser is described as "famous" or "well-known" such representations are not properly limited to the field or activity in which the endorser enjoys such reputation;
8. It is not clearly stated that the endorser, associated with some well-known an d highly regarded institution, is speaking only in his personal capacity and not only behalf of such institution, if such be the fact;
9. Broad claims are made as to endorsement or approval by indefinitely large or vague groups, such as "the doctors of America";
When consumer endorsements are used, advertisers must be able to show that the average person can expect comparable performance, disclose what performance can generally be expected or disclose that the endorsement has limited applicability.
Ads featuring what are represented as "actual consumers" must either use actual consumers or carry a disclosure stating that actors are appearing.
Endorsements must contain only claims that could be substantiated if the advertiser made them directly.
In those cases where the endorser has some connection with the advertiser, disclosure must be made of that fact.
Disparagement has long been held to be an unfair practice and may constitute false and deceptive advertising.
Advertising should not refer to competition by name or refer to competitor's conduct, performance ability, financial condition, quality or type of product built and sold, credit terms policies, service or in any other material respect.
33. BAIT ADVERTISING
A "bait" offer is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell. Its purpose is to "switch" consumers from the advertised or "bait" product or service in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. An advertiser should have a sufficient quantity of offered products to meet reasonable anticipated demands, unless the representation discloses the number of products available. If terms are available only at certain branches, their specific locations should be disclosed.
The actual sale of products or services does not, by itself, disprove the existence of a "bait" offer since this may be an attempt to create an aura of legitimacy. A key factor in determining whether or not the scheme is "bait" is a comparison of the number of times a product or service is offered to the number of sales and deliveries or installations of the product or service.
The same standards of accuracy should be applied to the use of illustrations as to any other form of advertising.
1. When an illustration is used, unless otherwise indicated, it should be a true representation of article advertised as to size, quantity, design, substance, price, and in all other particulars, so that it may be easily identified. If an inexact illustration is used, the term "similar to illustration" should clearly and conspicuously appear adjacent to the terms advertised.
2. If a price is quoted in an advertisement in connection with an illustrated mode, it should be for the model featured.
3. If the advertised price does not apply to all pieces illustrated, then the advertiser should clearly disclose specifically what items are being advertised, and/or what items are not being advertised.
Commonly known and used terms in advertising should not be abbreviated if the abbreviation has tendency to mislead the general public.
The abbreviation NFC, meaning "Not First Class," should not be used to describe an item of merchandise that is second or irregular.
36. ASTERISKS ( * )
An asterisk should not be used in advertising under the following circumstances:
1. In connection with words or claims which are themselves deceptive or ambiguous;
2. With the word "free";
3. In or with any headline or copy if the pertinent footnote tends to qualify the original claim or offer.
An asterisk may properly be used to indicate trademark proprietorship or similar rights.
There are Federal laws regulating the advertising of credit terms, finance charges, etc. Details, including the requirement for the advertising of credit, are available from the Better Business Bureau.
38. DISTRESS CLAIMS
Advertisers should not use fictitious distress claims such as:
"lost lease-must sell"
"creditors demand action."
39. "GOING OUT OF BUSINESS" SALES
The current Texas law (as of September 3, 2001) regarding Going Out of Business sales is:
Businesses that conduct "going out of business sales" must receive a permit. These types of sales cannot be conducted unless the business is planning on ceasing operations.
The law requires businesses that wish to go out of business and conduct a "going out of business" sale, to get a permit from the Central Appraisal District of the county in which the store is located. The store must file a sworn permit application and pay a $20 fee to receive the permit. The Chief Appraiser will then issue a non-renewable permit for the sale that is valid for 120 days.
Failure to comply with this law is a Class A misdemeanor and is punishable by a fine not to exceed $4000 and or confinement in jail for no more than a year, with each day of violation constituting a separate offense.
Persons wishing to report "going out of business" sales may call the Lubbock Central Appraisal District at 806-762-5000.
Courts have defined a lottery as a scheme wherein something of value is exacted from participants for the chance of winning a prize. Thus, the three necessary elements are: consideration, chance and prize. It should be stressed that it is necessary for all three elements to be present in a plan in order for it to be held a lottery.
A question of whether something is a lottery may present fine legal points of distinction on which advertisers and advertising agencies who prepare their copy should perhaps seek legal counsel.
There is a federal law regulating warranties. Details, including how warranties may be advertised, are available from the Better Business Bureau or perhaps the Federal Trade Commission.
42. "CENTS-OFF" SALES
The principles stated in the standard dealing with "free" should be followed in the advertising of "cents-off" sales.
43. CONTESTS AND GAMES OF CHANCE
1. If contests are used, the advertiser shall publish clear, complete and concise rules and provide competent impartial judges to determine the winners.
2. No contest, drawing or other game of chance that involves the elements of prize, chance and consideration shall be conducted since these constitute a lottery and is in violation of federal statutes.
3. The Federal Trade Commission has rendered various decisions on contests and games of chance relating to disclosure of the number of prizes to be awarded and the odds of winning each prize, and has issued a trade regulation rule for games of chance in contest conforms to FTC requirements.
44. COUPON BOOK PROMOTIONS
The BBB offers the following tips on coupon book promotions: Consumers should look through the book before purchasing to make sure that all coupons can be used to get what you feel is your money's worth. If the gift certificate book is over $25, you have three business days to cancel under the F T C Cooling Off Law. The company is not responsible, however, for refunding the entire amount of the coupon book if some of the certificates have been used during the 3Äday cancel period. And further, the company is not compelled to refund any monies after the 3Äday cooling off period.
Businesses should consider the number of books printed relating to the amount of the coupons advertised. Listing a business may not cost anything to the company advertising; however the cost of providing a 'free' meal or discount to those that respond with a coupon may outweigh the cost of a customer 'good will' (i.e., what happens to the customer's feelings about a company that does not honor the coupon?).
The term "gift" is considered given voluntarily with no obligation on the part of the receiver. It should not be stated as "gift" if there are conditions to receiving it, such as purchasing something, listening to a sales presentation, etc. Any conditions or qualifications to receiving a gift must be clearly and conspicuously stated in the advertisement. If there are conditions the term "gift" should not be used. For example: "set of steak knives given with every sales presentation".
See #11- "FREE"
46. USE OF THE BETTER BUSINESS BUREAU NAME
The BBB does not and will not endorse, either by implication or otherwise, any company's product or service. Nor does the BBB allow any firm to use the registered BBB Torch logo or BBB name in advertising or sales promotions, unless the following applies to the advertiser:
1. Accredited Business, in good standing of the Better Business Bureau of the South Plains; and
2. Signed a name and logo agreement with the BBB in the Membership Identification Program called MIP
Companies that advertise acreditation in; affiliation with; or uses the logo or verbiage in any fashion other than the criteria above, will be considered to be falsely advertising such affiliation.
For an accredited business to identify itself as an accredited business with the BBB in its offline advertising, the business must meet several criteria, including:
Having been in business for at least one year;
Have a satisfactory record with the BBB;
Agree to participate in and comply with a meaningful dispute resolution process when unresolved customer complaints are brought to the Bureau's attention; and
Agree to advertise their BBB membership ONLY in the BBB's service area which encompasses eighteen counties including Bailey, Borden, Cochran, Crosby, Dawson, Dickens, Floyd, Gaines, Garza, Hale, Hockley, Kent Lamb, Lubbock, Lynn, Motley, Terry & Yoakum Counties of the South Plains of West Texas.
For an accredited business to identify itself as a BBB accredited business in its online advertising, the business must be a participant in the MIP and have indicated a wish to participate in the BBB's online reliability program called BBBOnLine which identifies Bureau members online. These participants agree to, among other things, a Code of Online Business Practices (the basic principles of which are Truth, Disclosure, Security, Customer Satisfaction & Protecting Children); participate in and comply with a meaningful dispute resolution process; and display the online logo subject to approval by the BBB.
47. TIE-INS WITH CHARITABLE ORGANIZATIONS
Advertisers who make claims that a portion of the proceeds of a sale will benefit a specific non-profit organization, should disclose the specific amount or percentage of the selling price that will benefit the charity. For example: $50 for every test drive, 5 cents of every case sold, 10% of retail sale price, etc.
Charity donations that are contingent on the retailer making a profit before the charity receives any funding should be avoided. Phrases such as "a portion of the profits will be donated to charity" are misleading.
Charity tie-ins should be with legitimate non-profit organizations that are open to disclosing their financial information to the advertiser and consumer. Advertisers should not "create" a charity for the purpose of generating sales.
Local Advertising Review Program Co-Sponsored by:
Better Business Bureau
"Serving the South Plains of West Texas"
3333 66th St.
Lubbock, TX 79413
(806)763-0459 * (800)687-7890
Lubbock Advertising Federation
PO Box 93801
Lubbock, TX 79452
Copyright 2002 Better Business Bureau of the South Plains, Inc.