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Internet Corp. Listing Service: $35 Invoice*

Internet Corp. bill largeDomain names come up for renewal every year, and if you own one or more of them, you might receive what looks like a renewal notice via snail mail like the one on the right.

As it turns out, the notice is not quite what it appears.

*MOUSE PRINT: In all caps, “This is a solicitation for the order of goods or services, or both, and not a bill, invoice, or statement of account due. You are under no obligation to make any payments on account of this offer unless you accept this offer.” [From mailing dated May 31, 2006]

The mailing is actually trying to sell you a $35 service to submit your domain to various search engines, and it is apparently sent to domain owners at about the time their domain is up for renewal. The service does not include domain renewal however.

The disclosure is in the middle of the document in type similar to other type being used on it.  The question is, does it overcome the general impression created by the mailing that it is a bill?

The U.S. Postal Inspection Service is looking into companies that use similar tactics.  See story.

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Office Depot Rewards: Exciting News for Members*

Office Depot AdvantageMrConsumer always likes getting good news in the mail. This letter just arrived from Office Depot’s reward program announcing “Exciting news for Advantage members”.  The envelope goes on to say that rewards are now unlimited (previously there was a $50 cap per quarter). Inside, members learn the bad news.

*MOUSE PRINT: “Earn 5% back when you spend $200 or more on qualified purchases during the reward period.” [Direct mail piece, May 27, 2006.]

Office Depot’s original program paid back up to 10% when you spent $200 to $500 a quarter. It was by far the most generous reward program among the big three office supply superstores. Now instead of getting $20 back for a $200 purchase, you will only get $10 back.

While removing the cap on rewards benefits large purchasers, there is no getting around the fact that the reward has been halved (for those purchasing just over $200, $300, $400, or $500 per quarter).

The above description is not meant as a complete analysis of the pros and cons of the Office Depot reward program.

 

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HP Ink Cartridges: 35 Times More Reliable*

HP ink cartridgesComputer printer companies practically give away their printers because they know they will make the real money by selling high-priced replacement ink cartridges.They are not fond of no-name companies that sell refilled cartridges at much lower prices. One way to get consumers to buy the name brand is to tout its superiority. HP claims in this ad that its cartridges are “35 times more reliable than bargain ink cartridges.*”

*MOUSE PRINT: “Based on a 2005 Inkjet Cartridge Reliability Comparison Study by QualityLogic, Inc. and commissioned by HP. Testing performed on HP 45, HP 56, HP 57 , and HP 78 Inkjet print cartridges compared to leading remanufacturer brands.” [Boston Globe Magazine, May 22, 2006]

The footnote goes on to refer the reader to the full details of the study , and other information. They tested 50 of their own cartridges, and 30 of each of 13 other refilled brands. The results: 2% of the HP cartridges had a problem, while 70.3% of the other brands failed in some respect. Presumably this is how HP came up with the claim that they are 35 times more reliable.

Trouble is, HP is using failure rates to mathematically support their reliability claim. More appropriately, if they wish to make claims about reliability, they should be looking at the reliability rate of their cartridges compared to the reliability rate of competitors. Flipping their test statistics, HP cartridges were reliable 98% of the time, while competitors’ cartridges were reliable 29.7% of the time. HP could and probably should have said their new cartridges have over three times the reliability of refilled cartridges. Still, that is a genuine advantage to boast about, but it is not the claimed 35 times advantage over the competition.

 

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