Big Print. Little Print. What's the Deal?
How to
Disclose the Details
Computer sellers - online and brick-and-mortar - inundate consumers with advertisements
for "free" or low-cost computers. The offers usually involve rebates of several
hundred dollars off the computer's purchase price - if the consumer commits to a
long-term contract for Internet service. Some of the offers may be good deals for
consumers, but they are likely to involve complicated transactions.
Some advertisements for "low cost" computers omit important restrictions or
conditions about the "deal," or bury them in fine print or obscure locations.
This information should be disclosed clearly and conspicuously in the advertising so that
consumers can evaluate the merits of an offer and make an informed purchasing decision.
Rebated Computers and Internet Service
Many rebate promotions use big print to tout the after-rebate price of the computer.
But often, the total price the consumer must pay up-front is buried in the fine print, if
it's included at all. Your advertisements should prominently state the before-rebate cost
of the computer, as well as the amounts of the rebates. Only then will consumers know
their actual out-of-pocket cost and have the information they need to comparison shop.
In addition, advertisers should prominently disclose whether the consumer is required
to purchase Internet service to qualify for the "low cost" deal. The ad should
state the key terms of the purchase requirements, including the cost and duration of the
consumer's commitment to the Internet service.
Rebate promotions should clearly detail any additional terms and conditions that
consumers need to know, like:
penalties or fees for canceling the Internet service contract early.
Some rebate offers require consumers to pay back all or a portion of the rebate; others
tack on an additional fee.
additional connection charges to access the Internet service. For
example, consumers should be told that to access the Internet they may have to pay long
distance phone charges, or expensive hourly surcharges for use of an 800, 888 or 877 phone
number. This charge is in addition to the basic monthly Internet service fee. Consumers
also should be told how to find out if local Internet access is available.
how long before they will receive the rebate.
Advertisers should tell consumers what components are included in the offer. For
example, if a monitor is pictured in the ad but is not part of the deal, you must state
this fact clearly and prominently. You also should include the cost of the monitor if it's
sold as an add-on.
Don't Bury the Details
Your ads should clearly and conspicuously disclose all the information about an offer
that is likely to affect a consumer's purchasing decision. Disclose the most important
information - like the terms affecting the basic cost of the offer - near the advertised
price.
Print advertisers should not attempt to hide the real cost or the critical terms or
conditions by:
- putting them in obscure locations, such as the border area on a print ad;
- burying them in numerous, densely packed lines of fine print; or
- including them in small-type footnotes.
Television advertisers should not hide key information in:
- a fast moving "crawl";
- superscripts or subscripts using small print sizes or a color that fades into the
background;
- type that disappears from the screen too fast for consumers to read and comprehend; or
- the middle of a long statement that scrolls vertically on the screen within a short
period of time.
Disclosures in Internet Advertising
Information affecting the actual cost of an offer should be disclosed close to the
advertised price - that is, on the same electronic page and next to the price. Advertisers
should not use pop-up windows or hyperlinks to other electronic pages to display key cost
information. Hyperlinks may be useful to tell consumers about less critical terms and
conditions of an offer, especially when the information may be extensive. For example, in
rebate offers that require the purchase of Internet service, the cost of the Internet
service should be disclosed on the same page as the advertised price of the computer. But
hyperlinks may be used to direct the consumer to the cancellation terms and additional
Internet connection costs of many Internet rebate offers.
When using a hyperlinked disclosure, advertisers should clearly label the hyperlink so
it shows the importance, nature and relevance of the information to which it links (for
example, "Early cancellation of Internet Service may result in substantial penalties.
Click Here."). The hyperlink should be prominent, near the claim it is qualifying,
easily noticeable, and lead directly to the qualifying information. Vague labels like
"Terms and Conditions" are not enough to direct consumers to important
restrictions or qualifications.
In addition, information that is significant to the advertised offer should not be
buried at the end of a long web page that requires consumers to scroll past unrelated
information. Consumers should not have to wander through an electronic maze to discover
important conditions or limitations of an offer.
For More Information
For more information about online disclosures, including examples, see the FTC
publication, Dot Com Disclosures: Information About Online
Advertising. It describes the information businesses need to know to ensure that their
ads comply with the law.
Your
Opportunity to Comment
The Small Business and Agriculture Regulatory Enforcement Ombudsman and 10 Regional
Fairness Boards collect comments from small businesses about federal enforcement actions.
Each year, the Ombudsman evaluates enforcement actions and rates each agency's
responsiveness to small business. To comment on FTC actions, call 1-888-734-3247.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
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