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Default "FREE" costs $2,900,000.00! - 02-24-2008, 01:34 PM

Remember the thread where we discussed the use of the word FREE. I read this the other day...

VALUECLICK AGREED TO PAY $2.9 million to settle a Federal Trade Commission probe about lead generation, the company said Wednesday.

ValueClick also promised to adhere to guidelines regarding lead generation, which often involves luring customers to sign up for services with offers of "free" merchandise.

The company did not specify the new standards it agreed to in its settlement with the FTC. But the FTC in two previous settlements regarding lead generation required that companies advertising free products also display any purchase-required disclaimers in the same font, color and size as the word "free."

The Interactive Advertising Bureau recently unveiled its own best practices guide for online lead generation that also recommend that companies offering "free" iPods and the like also display disclaimers that purchases are required in the same font, color and size as "free."




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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 01:38 PM

I think the FTC needs to do some testing. Wouldn't $2,777,777.77 have been a more appropriate fine?

I'm just sayin...


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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 01:41 PM

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Originally Posted by Montello Marketing View Post
Wouldn't $2,777,777.77 have been a more appropriate fine?
That's funny. Yes.
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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 03:02 PM

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Originally Posted by Montello Marketing View Post
I think the FTC needs to do some testing. Wouldn't $2,777,777.77 have been a more appropriate fine?
That's what the original fine was, but when you add the $122,222.23 HANDLING charge it comes to $2.9 million.


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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 03:11 PM

But I'm sure in the end that price will be cut in half... then cut in half again... and no doubt there will be $500,000 in bonus fines that will be discounted also.

The part that bothers me most is the forced continuity! They have to pay those fines every month unless they opt out.


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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 03:22 PM

But not to worry Vin... before you even have to Opt out, the FTC's Paypal account will freeze pending investigation.


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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 03:37 PM

Whew - I guess Kennedy's off the hook then since the $19.95 for his ultimate "free gift" is for shipping and handling.

Steve



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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 03:55 PM

The FTC could have done much better with a forced continuity offer.

$2,900,000 up front then another $2,900,000 every month you use the word "free" in your advertising.

Plus shipping and handling of course!

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Andrew Cavanagh
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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 06:22 PM

The FTC doesn't have any affiliates?


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Default Re: "FREE" costs $2,900,000.00! - 02-24-2008, 06:39 PM

Quote:
Originally Posted by Ricky Breslin View Post
The FTC doesn't have any affiliates?
Indirect affiliates. They call them "lawyers."

Regards,

-Mike


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DISCLAIMER: Information posted is general in nature, should not be construed to be formal legal advice or the formation of a lawyer/client relationship. Consult an attorney to address specific legal issues.
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