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The Straight Poop About Online Product Reviews

A friend is constantly annoyed by seeing help wanted postings on Craigslist where business people are looking for common folks to write and post favorable reviews about their products and services in return for compensation.

Since so many shoppers read and rely on product reviews written by actual purchasers when deciding whether to buy a particular product, no wonder sellers are eager to display positive reviews. The problem, of course, is that the reader cannot tell whether the review is genuine, fake, or possibly tainted because the reviewer has been paid for his or her comments.

Enter the Federal Trade Commission.

Under their revised testimonial guidelines, even bloggers are required to disclose in their reviews if they have been compensated for their review or received the product free that they are reviewing:

“When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed.” — 16 CFR 255.5

Now how often have you seen a blogger make such a disclosure?

Enter MrConsumer.

bidetLast week, I received an email from the company that sells the bidet that I recently purchased from Amazon. (This bidet is an attachment you install on an existing toilet to rinse your heinie with a narrow jet of water.) They asked if I would write an “honest review” of the product and post it on Amazon. (Seriously, I was NOT asked to write a positive review, but rather an honest one.) In return, they would send me a second bidet free.

Since I was intending to write a review anyway (I love the product), this was the prompt I needed to actually do it. And of course, who wouldn’t want another bidet for nothing?

I wrote the review “So Long Toilet Paper”, and included the following disclosure that I dare to say no other poster has ever included in their review:

*MOUSE PRINT:

“NOTE: As required by Federal Trade Commission guidelines, I am disclosing that I was promised compensation for posting an honest review. And the review is just that — my honest opinion — something I would have written exactly as you see it irrespective of any future compensation that I might receive.”

Upon hitting the submit button, Amazon flashed up a notice that it may be up to 48 hours before the review is posted because they have to examine it first. Well, I said to myself, they will never approve this. Funny thing, later that night, they did.

I then notified the bidet company of its posting. Well, I said to myself, they will never send me the free bidet. Funny thing, almost immediately, they thanked me for my “wonderful review.”

I guess no one reads anything thoroughly anymore. In any event, at least shoppers who read the review will be put on notice, as required, that I was promised compensation in return for the review.

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$500 Off Watches and Sunglasses?

Red Star US Airways’ inflight magazine had an unusual advertisement offering a free $500 prepaid giftcard good toward the purchase of watches and sunglasses. MrConsumer thought that they must sell really expensive products to be offering $500 off for nothing.

It turns out that some fine print on the back of the card explains their little trick:

*MOUSE PRINT:

With your PREPAID gift card code, you’ll receive $500 of suggested retail and sale price products! You pay only a 9% Service Fee for your selections. Service Fee includes: First Class delivery, customer service, order processing, labor, materials, goods, profit, marketing, free exchange & full refund programs. Fee is based on suggested retail price of the product and is separate from your Gift Card. Some products carry a minimum Service Fee.

In other words, it says they will charge you a fee to cover the cost of the watch or sunglasses.

On their website, there were a number of watches like this:

watch

The fine print next to the watch explains some unusual terms like “proposed price”, indicating that they plan in the future to sell this watch for $90. Sure. And the sale price is now $54.00. Sure. (You don’t even pay the sale price because you have a giftcard, remember, but the giftcard does not apply to the service fee.) You only pay a $12.90 “service fee.”

Poking around online, MrConsumer found some similar watches of the same (not so) famous brand, “Passion Time”, selling for not $90, not $54, not even $12.90.

watch

So basically, all this stuff about giftcards, and $90 prices, and $54 prices seems like nothing more than smoke and mirrors for a company selling cheap watches.

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Verizon’s “Share Everything” Plan: You’ll Pay Less or More

Last week, Verizon Wireless announced a new “Share Everything” plan, that radically changes how cell services are sold. Starting June 28, if you upgrade your phone and pay a subsidized/discounted price for it, this plan may affect you. You can also voluntarily switch to this plan.

On the positive side, Share Everything lets a family share one pot of data each month the same way they currently share a bucket of minutes. Currently each family plan member has to buy a $30 data pack for their smartphone. Also on the positive side, it appears that most people on unlimited calling plans will save money under the new scheme.

On the negative side, those folks who are looking to reduce their plan minutes for calling may be forced into unlimited calling plans for which they have no use. And they may pay more. People with multiple devices, even individuals, will be charged a fee for each device that can tap into their one pot of data.

*MOUSE PRINT:

To see how this compares with what customers are currently paying, we looked at two (of many) scenarios.

Example 1: One person with one smartphone currently with an unlimited calling plan, 1000 text messages, and 2-gigs of data.

That person pays a total of $109.99 currently (unlimited calling ($69.99), 1000 texts ($10), and 2-gigs of data ($30). Under the Share Everything plan, he or she would pay $100 (smartphone ($40) + 2-gigs of data ($60) + “free unlimited calls and texts”). That is a $10 savings a month. If that person also had a tablet, currently that would add $30 a month to their bill for an additional 2-gigs. Under the new plan, that tablet would only cost $10 extra, but not come with any additional data. If the customer wanted a total of 4-gigs of data to be shared by the smartphone and the tablet, that adds another $10. So this customer in total would save $20 a month compared to the current system.

Example 2: Three people on a family plan with two smartphones and one basic phone, sharing 700 minutes of calling, unlimited texts, and two of them having 2-gigs of data each.

That family currently pays: $169.97 (700 calling minutes ($69.98) + third phone ($9.99) + unlimited texts ($30) + 2-gigs per smartphone ($60) ). Under the new system, they would pay a total of $180.00 ( 2 smartphones ($80) + 1 basic phone ($30) + 4-gigs data to share ($70).

The bottom line is that everyone on Verizon will have to do the math to see if it is best to stick with their current plan or switch to Share Everything.

Note: MrConsumer is a member of Verizon’s Consumer Advisory Board.