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Walmart Touts Free Layaways But Quietly Adds Cancellation Fee

Retailers are making a big push to promote early holiday shopping. Kmart began TV advertising last week, and Toys-R-US just announced modified store policies. And Walmart started promoting its holiday layaway plan:

Walmart layaways

“This time it’s free,” the ad boasts. This refers to the fact that last year Walmart charged a $5 fee to initiate a layaway, but they reimbursed that fee to shoppers at the end by giving them a $5 gift card.

What Walmart doesn’t tout is another inconspicuous change.

*MOUSE PRINT:

Walmart cancellation fee

Yep. They have introduced a $10 cancellation fee which is imposed if the consumer cancels the purchase. It is also triggered if all the payments are not made or if the item is not picked up by December 13.

No one is disputing Walmart’s right to add a cancellation fee, particularly if they have taken the shopper’s goods off the selling floor for three months. What is interesting, however, is that their marketing folks have taken a net negative change to the layaway plan (the $10 cancellation fee) and essentially no change to their start fee (since it was rebated), and turned it into a positive advertising campaign.

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Product Dilution: Breyers Lightens More Ice Cream

Last year, we reported that Breyers “cheapened” many varieties of their ice cream by reducing the amount of butterfat content to the point where the product could no longer legally be called “ice cream,” but rather had to be renamed “frozen dairy dessert.”

Some stalwart flavors, like MrConsumer’s beloved lactose-free vanilla, remained untouched until now. To MrConsumer’s horror and surprise, Breyers quietly converted that ice cream variety to “light ice cream.”

*MOUSE PRINT:

Breyers old - new front
Click to enlarge

In the new packaging, the “All Natural Ice Cream” claim is replaced with the phrase “Quality Since 1866.” Of course, it doesn’t say the same quality. And the words “ice cream” are replaced with “light ice cream.”

What exactly is “light ice cream?” According to FDA rules:

“Light” ice cream contains at least 50% less total fat or 33% fewer calories than the referenced product (the average of leading regional or national brands).

Looking at the nutrition panels of the old Breyers lactose free ice cream and the new one reveals only a minor reduction in calories.

*MOUSE PRINT:

Breyers old-new

The old “ice cream” product had 130 calories and the new “light” one has 110 calories, only 20 fewer calories. It does however have half the fat. And, the federal law says that light ice cream must have EITHER half the fat OR 33% fewer calories.

There is just one problem, though. The front of the package claims very clearly that the new light ice cream has BOTH half the fat and 1/3 fewer calories.

Breyers fat-cals

Clearly, this new lactose free light ice cream does not comply with that representation when compared to their old regular lactose free ice cream. So how do they get away with this claim?

*MOUSE PRINT:

breyer one-third fewer

Tucked away on a side panel is that tiny disclosure. They are not comparing this new light ice cream with THEIR old regular ice cream, but rather with some super premium brands like Ben & Jerry’s and Haagen Dazs as well. Those have been thrown in to up the average amount of fat and calories in “full fat” brands, and thus make Breyers’ reduction seem more impressive than it really is. (Haagen Dazs has 250 calories and 17 grams of fat per serving, while Ben & Jerry’s has 230 calories and 14 grams of fat.)

Mouse Print* asked the PR firm representing Breyers three times to explain why they cheapened some of their products, and they provided no response.

If you spot a new example of “product dilution,” please send complete before and after details to edgar [at symbol] mouseprint.org .

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Inside the NY-AG’s Lawsuit Suing Donald Trump Over “Trump University”

Last week, the New York Attorney General sued Donald Trump and others claiming a host of illegal practices engaged in by Trump University, the Donald’s real estate education program.

Among the AG’s allegations (and some things you didn’t hear in the news):

  • Students were induced to sign up for classes under the belief they would be taught Donald Trump’s personal strategies and techniques for investing in real estate. The material in the courses was never reviewed by Donald Trump and actually came from other seminars and courses about real estate. It also did not include some of the topics specifically advertised.
  • Trump’s free education seminar was really a sales pitch for a $1495 three-day course. His three-day program was itself in part an upsell sales pitch for an elite course costing up to $35,000. Trump University claimed this was a philanthropic endeavor that Trump would not profit from. In fact, they took in $40 million in sales, and Trump himself pocketed some $5 million in profits.
  • Trump University was repeatedly told by the New York State Education Department as far back as 2005 that it needed to be licensed and could not use the term “university” in its name. They didn’t change the name, however, until 2010.
  • Trump claimed in advertisements that he handpicked the instructors/mentors in the program, when he never did.
  • There were claims that the instructors were real estate experts, when some of them had just filed for real estate-related bankruptcies.
  • Students were told they would easily and quickly make back the money they spent on courses because mentors would in essence hold their hand through their first transaction. Mentors, however, disappeared after the course was over in some cases and students were left with significant credit card debt for the classes.
  • After the lawsuit was filed, Donald Trump defended the educational program saying that students filled out an evaluation and 98% said they were satisfied. What Trump didn’t say, and what the NY-AG alleges in his complaint, is that students filled out the non-anonymous evaluations before the course was over, were pressured to give the course good grades, and in some cases negative evaluations were changed to positive ones by staff.

And it goes on and on.

*MOUSE PRINT:

Here is a link to the actual complaint filed by the New York AG, with great detail about the promises made, and what was really going on behind the scenes. For example, most of the instructors/mentors were paid commissions based on the number of students they convinced to pay for the advanced seminars.

It is fascinating reading beginning to end. [Click the icon in the bottom right corner below to see the complaint full screen.]

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