Two Oregon Companies Settle with FTC Over Deceptive Advertising

by Danielle Kane | Feb 14, 2020 2:41:05 PM

Two Oregon-based
advertising companies have agreed to settle Federal Trade Commission charges
that they deceptively pitched and charged small business owners for misrepresented
advertising opportunities.

The announcement, made on February 11, names Production
Media Company and the Ferraro Corp, as the two companies that were selling
“exclusive” advertising placements to business owners, knowingly misleading
them about where the ads would be printed and distributed.

Better
Business Bureau Northwest + Pacific recognizes this as what’s commonly referred
to as advertising fraud or an advertising scheme. During the calls to business
owners, the defendants told them that for a small fee, they could advertise to
hundreds if not thousands of prospective customers, making big promises about
where the ads would appear in the community. In ad schemes such as this, BBB
Northwest sees complaints alleging the advertisements never appear at all,
appear in in far less places than promised, and/or sellers mispresented type,
exclusivity or placement of ads.

In this
particular FTC case, complaints further allege that if and when their ads were
placed, they were not exclusive, often sharing space with competitors. Often
times, the business owners had to file a complaint with BBB in order for one of
the companies to take action and place the ad. Business owners who did not want
to wait any longer struggled to get refunds, as both Production Media Company
and Ferraro Corp typically refused to issue refunds.

BBB Northwest
is here to support small business owners. We urge business owners to follow these tips if they’re being contacted about an
advertising opportunity:

Do Not
Commit Right Away
:
Reputable businesses should not pressure you into an agreement during your
first conversation. Never jump into an agreement or contract with a stranger
who calls you out of the blue.

Research
the Company
: What can
you find about the business online? Have you checked bbb.org to see if other business owners have
complained? Does the business have a physical location you can visit? Make sure
you hammer down some of these basics, as well as contact information from the
person calling you, to verify legitimacy.

Double Check Terms and Conditions: Always get everything in writing, and always read the fine print. In any advertisement agreement, the expectations should be clearly defined, which includes placement, timeline, price and any stipulating conditions. If the company can’t answer your questions directly, consider calling the deal off.

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