Essentials of Business Communication 10th Edition by Dana Loewy,Mary Ellen Guffey

Exercise 8

In promoting products and writing sales messages, be careful about the words you choose and the claims you make. How far can you go in praising and selling your product?
• Puffery. In a sales message, you can write, Hey, we've got something fantastic! It's the very best product on the market! Called "puffery," such promotional claims are not taken literally by reasonable consumers. However, consider the case of Dannon Yogurt, which settled a lawsuit for $45 million over allegedly deceptive claims that its products were "clinically proven" to relieve irregularity and helped people avoid catching colds or the flu. The Federal Trade Commission charged that Dannon's claims were false and its advertising deceptive because it lacked proof.
• Proving your claims. If you write that three out of four dentists recommend your toothpaste, you had better have competent and reliable scientific evidence to support the claim. Such a claim goes beyond puffery and requires proof. According to a government report, as many as 20 percent of dietary supplements in the United States featured labels that made illegal claims to cure or treat diseases such as cancer and AIDS. The $20 billion supplement industry is frequently in the sights of investigators and subject to litigation for misleading claims. Actress and Dancing With the Stars celebrity Kirstie Alley, whose struggle with weight loss is amply documented, was sued for allegedly making false statements over the Organic Liaison weight-loss program she touts. In a litigious society, marketers who exaggerate are often taken to court.
• Celebrities. The unauthorized use of a celebrity's name, likeness, or nickname is not permitted in sales messages. Hollywood stars George Clooney and Julia Roberts joined forces to sue two audiovisual companies for misusing their names and images in selling projectors and entertainment systems. Hilary Swank filed a lawsuit claiming unauthorized use of her film Million Dollar Baby in ads. Similarly, the White House does not approve the use of the president's name and likeness for commercial purposes. Weatherproof Garment Company was asked to remove a billboard in Times Square that showed Barack Obama wearing one of its coats above the caption "A Leader in Style."
• Misleading statements. You cannot tell people that they are winners or finalists in a sweepstake unless they actually are. American Family Publishers was found guilty of sending letters tricking people into buying magazine subscription in the belief that they had won $1.1 million. Similarly, it is deceptive to invite unsuspecting consumers to cash a check that will then hook them into entering a legal contract or a subscription. Finally, companies may not misrepresent the nature, characteristics, qualities, or geographic origin of goods or services they are promoting.
• Paying for favorable online reviews. The Federal Trade Commission mandates full disclosure when a merchant and a promoter have a financial relationship. Legacy Learning Systems paid $250,000 to settle charges that it hired reviewers to recommend its videos on the Web.36 Amazon and other online retailers have policies against buying positive reviews. Nonetheless, experts estimate that about one third of all Internet consumer reviews are fake.
Career Application. Bring to class at least three promotional e-mails, sales letters, social media posts, or advertisements that may represent issues described here. What examples of puffery can you identify? Are claims substantiated by reliable evidence? What proof is offered? Do any of your examples include names, images, or nicknames of celebrities? How likely is it that the celebrity authorized this use? Have you ever received unwanted merchandise as part of a sales campaign? What were you expected to do with it?