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Comcast’s 2-Year “Guaranteed Rate” Increases

There is a change in the way “triple plays” for TV, Internet, and phone service are being marketed by major cable companies. Advertised promotions used to be limited to six months or a year at the most. Now many of them are for two years. This can be good or bad, depending on the details (which of course are not always immediately obvious).

Comcast/Xfinity is currently running a TV commercial touting a “guaranteed rate” (in large type) of $99 a month. The announcer even says:

“We’ll guarantee your rate for two years.”

One might come away with the impression that the $99 rate is guaranteed for two years, but that is not so.

*MOUSE PRINT:

In surprisingly large type, but much smaller than the $99 rate, Comcast discloses that the rate  jumps up $16 a month in the second year. Does that disclosure really overcome the other representations in the ad about the $99 price and the oral promise guaranteeing the rate — not “rates” — for two years?

It is unclear whether one would be allowed to cancel the deal after the first year, or if the customer is bound to a two year contract (and possible early termination fees).

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Sears Makes Good Despite the Fine Print (Part 2)

When last we left this saga, MrConsumer had ordered a Sears gas range based on a picture on their website. The stove that was delivered, however, was not like the picture in several respects, including coming with glossy instead of matte finish grates. Executives at Sears, once contacted, bent over backwards to right the situation by agreeing to replace the stove with the pictured model at no extra cost.

For a period of five days, however, MrConsumer had two new Sears ranges in his kitchen because of coordination problems between the delivery and installation departments at Sears. Worse, the replacement stove also came with glossy grates.

This discrepancy was predictable because of mouse print on the Sears Parts Direct website which indicated the part number for the grates on both the original range and the replacement one were the same.

Undaunted, and with a little research by MrConsumer, the correct part number for the matte grates was discovered, and the folks at Sears headquarters ordered a set of matte finish grates. What arrived? Two sets! Why? Another error on their parts site made it appear the grates were being sold individually rather than in sets.

From the start, the Sears executive who wanted to right the situation and the person at “executive resolutions” who did the heavy lifting to make it happen, were determined to see this through to a successful conclusion. The correction cost Sears, in retail dollars, over $700 (higher priced replacement stove, delivery, installation, removal, and grates cost). That is an amazing amount of money to spend to satisfy one customer… and this customer is very grateful to them for the effort. Old fashioned customer service, at least in this instance, is a live and well and living at Sears.

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(Not so) Free Chips Ahoy Cookies

Nabisco took out a full page in a recent Sunday coupon insert promoting a free package of Chips Ahoy cookies. What they were asking people to do was to visit their Facebook page, and there they could download a coupon for a free package of cookies.

That is not such an unusual offer. Last year, TGI Friday gave away free hamburgers if you became a fan of theirs on Facebook.

What’s different about this offer is buried in the fine print, and not even in that section of red words at the bottom of the ad.

*MOUSE PRINT:

So the offer is not really what the headline promises, nor even what the coupon at the bottom of the ad suggests in the larger print. The offer is really:

1. Buy a gallon of milk.
2. Buy a package of Nabisco cookies.
3. Become a fan of our cookies on Facebook.
4. Then and only then, get a free package of cookies.

The Federal Trade Commission’s guidelines on the use of the word “free” say:

“When making “Free” or similar offers all the terms, conditions and obligations upon which receipt and retention of the “Free” item are contingent should be set forth clearly and conspicuously at the outset of the offer so as to leave no reasonable probability that the terms of the offer might be misunderstood. Stated differently, all of the terms, conditions and obligations should appear in close conjunction with the offer of “Free” merchandise or service. For example, disclosure of the terms of the offer set forth in a footnote of an advertisement to which reference is made by an asterisk or other symbol placed next to the offer, is not regarded as making disclosure at the outset. ”

Will advertisers EVER learn to play it straight (and follow the rules) and not lead consumers to believe they are offering something for free with no additional purchase necessary, when in fact there are many strings?

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