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CVS: Sign Up for Offers, Get a $4 Coupon?

In the CVS drugstore circular on August 1, the company promised to give customers who signed up for their email list a $4 coupon:

The unreadable fine print in the reduced size picture above only refers to the company’s privacy policy, and that people already on their list are not eligible.

Seemed like an easy way to save $4 to Linda D., a regular Mouse Print* reader. So she signed up at their website. She  filled out her name and email address on the page that contained this description (actual size):

So far, so good. Then she got an email from CVS with her coupon:

Excuse me, $4 off a $20 purchase? Where did that come from? There was no mention whatsoever about this coupon requiring a minimum purchase in the circular. Even visiting the CVS website on the page where you fill in your name and email address, there was no disclosure right on that page either [since changed as noted below].  If you were to click to see the sample coupon, you would have seen the $20 minimum purchase requirement, but few would probably have a reason to view the sample coupon.

Most people would only find out they’ve been hoodwinked after they had given CVS their personal information.

Mouse Print* contacted the PR folks at CVS to ask if they didn’t think this promotion was deceptive, and whether they would now provide people who signed up with a no-strings-attached $4 off coupon. They responded, in part:

“On the sign-up page, a sample coupon was displayed setting forth the details of the offer.

While we feel the information was available, CVS/pharmacy appreciates customer feedback and moving forward, we have enhanced the language for this ad to indicate more clearly that this is an offer for a $4 off $20 coupon. This change has already been made online at www.cvs.com/email. We have also made this change to our circular and it will be reflected on the online circular beginning on 8/22 and due to printing lead times, the new ad will begin running in the printed circular the week of 9/5.”

So, basically CVS decided against doing the honorable thing right away — offering those who signed up based on the misleading ad a no-strings-attached $4 coupon. And notice that they made no mention of running a retraction in newspapers across the country, as might be required by various state advertising laws.

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Dish Network: #1 in Customer Satisfaction?

In several TV commercials, the President of Dish Network touts the company’s low prices and success in becoming number one in customer satisfaction. In fact, he unequivocally proclaims:

“Dish Network is ranked number one in customer satisfaction among ALL [emphasis added] cable and satellite providers.” [Commercial one, and commercial two. ]

Not so fast, Mr. Ergen. There is a nearly unreadable disclaimer on the screen.

*MOUSE PRINT:

“According to the 2010 American Customer Satisfaction Index (ACSI) survey results for the US largest cable and satellite TV providers. The claim excludes fiber optics carriers.”

If you look at the actual survey results from the University of Michigan for May 2010, you discover the true ranking of companies:

*MOUSE PRINT:

Funny thing, the real number one-rated company for customer satisfaction is Verizon FiOS and the real number two company is AT&T U-verse. In essence, Dish is saying, if you exclude the number one and number two company, we are number one! That is kind of like Alamo declaring “We are number one (if you don’t count Hertz and Avis)”.

Dish Network was invited twice by Mouse Print* to comment on its advertising practices but did not respond.

Disclosure: MrConsumer is a member of Verizon’s Consumer Advisory Board (but even if he wasn’t, Dish Network’s ads would have been subject of a Mouse Print* commentary).

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30 Day Risk Free Trials and Lowball Prices

Most of us are used to seeing infomercials where a product is offered with a free trial period. You pay the advertised price, and then if you decide you don’t like the product, you return it, and get your money back.

Now, there is a new breed of promotion,  like this PowerMeter ad. It appears you pay $9.95 for the device that measures the speed of your golf swing, and if you don’t like it, you can return it within 30 days.

If on the other hand you like it,  you might assume that you just keep it. Not so fast.

*MOUSE PRINT:

“If after 30 days you still like the Medicus Power Meter, then it’s just 4 payments of $19.95” … PowerMeter website

So the $9.95 advertised price is the price of the “risk free trial”, not the price of the item. If you keep the PowerMeter, it will cost you a total $89.75 . 

The total price of the item may come as a surprise to purchasers who assumed the price  that was advertised was in fact the price of the product. To make matters worse, most infomercials that use this new technique of advertising, don’t disclose the actual cost of the product itself in the commercial even in mouse print. 

Incidentally, if you don’t keep the product, it isn’t even clear if you get your $9.95 back because this was not a “free trial” but a “risk free trial.”

Thanks to Eric from the Montgomery County Office of Consumer Protection for this submission.

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