The Better Business Bureau was founded to promote public confidence in advertising. Today, the BBB works to help business maintain truthful advertising through voluntary action, primarily by promoting compliance with the BBB Code of Advertising. You can assist the BBB's work in the area of truthful advertising by contacting the BBB about advertising that you believe violates the Code of Advertising. The BBB's advertising review director will evaluate each advertising issue that you bring to the BBB's attention. When appropriate, the BBB will contact the business to request substantiation or change in the advertising. You may contact the BBB about advertising issues by sending questions or concerns to advertising@bbbkyin.org.
Advertising Questions and Answers:
Do advertising regulations and the BBB Code of Advertising permit an automobile dealer to offer "Tires for Life" with the purchase of a vehicle?
Who carries the primary responsibility for truthful and non-deceptive advertising?
The advertiser
Advertisers may offer a price reduction or saving by comparing their selling price with:
- their own former selling price,
- the current selling price of identical merchandise sold by others in the market are
- the current selling price of comparable merchandise sold by the advertiser or by others in the market area.
When can a list price be advertised as comparative to the advertised sales price?
When it is the actual selling price currently charged by the advertiser or by representative principal retailers in the market area where the claim is made.
When can the word sale be used?
“Sale" may be used in advertising only if there is a significant reduction from the advertiser's usual and customary price of the merchandise offered and the sale is for a limited period of time. The word "free" may be used in advertising whenever the advertiser is offering an unconditional gift.
What does bait and switch mean?
"Bait" is an alluring but insincere offer to sell a product or service which the advertiser does not intend to sell. Its purpose is to switch consumers from buying the advertised merchandise or service, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser.
How should used products be advertised?
Used, secondhand, etc. products previously used by a consumer should be clearly and conspicuously described as such, e.g., "used," "secondhand," "pre-owned," "repossessed," "rebuilt," "reconditioned."
If an advertiser offers a “free” gift that is conditional on the purchase of another item what must an advertiser do?
The advertiser must disclose this condition clearly and conspicuously together with the "free" offer (not by placing an asterisk or symbol next to "free" and referring to the condition(s) in a footnote). The normal price of the merchandise or service to be purchased must not have been increased nor its quantity or quality reduced. The "free" offer must be temporary; otherwise, it would become a continuous combination offer, no part of which is free.
If a "free" offer is part of a negotiated sale what must the advertiser do?
The product or service to be purchased usually is sold at a price arrived at through bargaining, rather than at a regular price; or there may be a regular price but other material factors such as quantity, quality or size are arrived at through bargaining.