Infomercials -- November 1992
What looks like a TV show and sounds like a TV show -- but isn't? It's probably a new type of advertisement called an infomercial.
Seen increasingly on cable and independent television stations, many of these commercials have the look, feel, and duration of real TV programs, often imitating the format of genuine talk shows or investigative consumer news programs. The product being sold is often discussed as part of the program and touted by paid "experts," "moderators," or "reporters." These "shows" may last 15 minutes or longer and may even be interrupted by realistic-looking "advertisements" for the product with ordering information. Consumers may find it difficult to tell the difference between an infomercial and an independent TV program, where the content of the show and the advertisements are separately developed and paid for.
As part of its job monitoring national advertising, the Federal Trade Commission (FTC) investigates infomercials that do not disclose their true advertising nature. The FTC has charged a company with misrepresenting that it was a TV consumer news program.
How to Spot an Infomercial
There is nothing illegal about advertisers paying for infomercials to sell products. But, it is important to remember that product claims made on such programs are those of the advertiser. They are not an objective or independent evaluation of the product. Here are some tips on how to spot a paid advertisement.
Look for commercials similar to the program content. Infomercials promote products or services in "commercial breaks" that relate to issues discussed on the rest of the show. For example, a "program" about credit problems may discuss services that promise to repair a consumer's low credit rating or a program about sunglasses may sell sunglasses. Ordering information, such as a toll-free number or a mail address, usually is shown during the "program." Sometimes this is done as a "program" interruption. As a general rule, you should assume that any "program" which provides ordering information for a specific product or contains commercial interruptions to promote products related to the "program's" content is a paid advertisement.
Check for sponsor identification. The Federal Communications Commission requires television stations to disclose who is paying for an infomercial -- at the beginning or end of the show. Look for that identification to determine whether the program's sponsor has a financial interest in the products discussed.
Know that many infomercials advertise health or financial products. Health and financial products are two big areas where some advertisers feel consumers may spend their dollars for promising, but sometimes less than tried and true, products and services. So, infomercials devoted to weight loss, skin care, "get rich quick," and similar schemes are popular with sponsors. These ads often promise great results with little effort or risk.
Be wary of programs where one product is selected as being better than others. Many legitimate television shows discuss and evaluate products and services. Sometimes, however, this format is used in infomercials that simulate the appearance of impartial evaluations of advertised items. For example, a "talk show" moderator may ask for an "expert" opinion or celebrity testimonials, or the advertised product may be selected as the "best" during an "investigative" segment. All of these techniques are just part of an overall sales pitch. If the product is treated in this manner and the show provides information about how to order it, you probably are watching a paid advertisement.
How to Protect Yourself If You Buy Something
If you decide to purchase a product advertised on an infomercial, you have certain protections under the law if you make your purchase by credit card or if you make your order or payment by mail.
Charging by Credit Card: Disputing Errors
If you charge an item on a credit card by either telephone or mail, the Fair Credit Billing Act may offer you some added protection. For example, if you disagree with a charge on your monthly credit card bill (such as a wrong amount), send the credit card issuer a letter right away using the special "billing error address" given on your monthly statement or credit card contract. Include your name and account number; the date, type, and dollar amount of the charge you question; and why you think there was a mistake. The credit card company must respond to your letter -- either correcting the mistake or explaining why the bill is believed to be correct.
Charging by Credit Card: Disputing Quality
If you purchase a product with a credit card and later have problems with the quality of the item, the Fair Credit Billing Act allows you to withhold payment of the disputed amount from the credit card issuer. First, however, you must make a good faith effort to resolve the matter with the seller. In most cases, you must have bought the item in your home state or within 100 miles of your current billing address, and the amount charged must be more than $50. Unfortunately, this may not be the case with most sales from infomercials.
Ordering or Paying by Mail
If you use the mail, rather than the telephone, to order or pay for a product, you have rights under the Mail Order Rule. Companies must ship your order within the time promised. If no time period is stated, the company must ship your order within 30 days after receiving it. If there is a delay, the company must send you a notice, giving you the option of agreeing to the delay or canceling the order and getting a refund.
For More Information
If you have further questions about this issue or feel that an infomercial you have seen has not been properly identified, write to: Correspondence Branch, Federal Trade Commission, Washington, D.C. 20580. The information you provide may indicate a pattern of possible law violations requiring action by the Commission. For single free copies of the FTC brochures, Shopping by Phone and Mail and Fair Credit Billing, write: Public Reference, Federal Trade Commission, Washington, D.C. 20580.
FTC CONSUMER & SMALL BUSINESS ADVISORY - PUBLIC DOCUMENT
|
