Accuracy & Clarity - who's doing who any favours

In the United States, Dell Computers is being taken to court by a class action suit for their constant disregard to being accurate and clear in their advertising as it pertains to financing and customer service availability.

Here in Canada, Dell Computers is a popular company to have complaints lodged against them with Advertising Standards Canada. And yet, in Canada, they continue to do business practically unscathed.

And The Brick. If there was ever a complete disregard for accuracy and clarity in advertising, The Brick is the granddaddy of nose-thumbing.

So if these big companies can get away with it, why should small business try to be ethical, clear and accurate in their advertising? Obviously, based on Dell and The Brick, there are business reasons to obfuscate terms and conditions, pricing and service promises - at least someone high up in these companies believes this to be true.

First, let's deal with Advertising Standards Canada. This organization is a not-for-profit group which is funded by advertisers. So basically, self-regulation. And Advertising Standards Canada has no power. They can make recommendations, but they can't really punish anyone. That is left up the Federal Ministry of Industry. And humorously enough, or maybe not so funny, is that Advertising Standards Canada relies on the consumer with the complaint to provide all advertising materials with respect to the complaint. If the advertiser doesn't co-operate and supply the suspected and accused advertising materials, then Advertising Standards Canada says they have no choice but to close the file.

Second, let's deal with the personality of many Canadians. Most people just don't find it worth their time to lodge a complaint and deal with the ensuing paperwork that complaining involves. We'd much rather just complain to our friends and family.

Of course, the key element that small business needs to pay attention to is that in the process of complaining to friends and family, the true punishment arises.

(Of course at this point The Brick has so many customers that love the special deals that the punishment doesn't affect them. But if you look at the deteriorating market share for Dell, it is finally hitting home.)

And what is this punishment, you may ask? Loss of business. Loss of credibility. Loss of any brand equity you may have had.

When one person is upset by a business' behaviour, they generally will tell at least 10 people. So at the barest bones of the matter, you have lost the trust of 11 people when one person is dissatisfied, either with your advertising, pricing or customer service.

While small businesses may, in the short term, benefit financially from questionable advertising practices, ultimately you will lose business and lose face in your community.

Be truthful. Don't get in two terrific items and then mark them down dramatically and run a sale ad for those two items. There is value in having loss-leaders, but be reasonable about what the demand will be and be prepared to meet it. If you promise great customer service, be prepared to deliver it.

Be accurate. If there are terms and conditions on a purchase price, say so in very clear, readable type. Nobody likes these kinds of surprises.

Be clear. Don't use mystery language that can be interpreted any number of ways. Tell it like it is. Your customers will appreciate it.

Make it a practice, nay, a policy to always be truthful, accurate and clear in all your dealings with your customers. While they may not verbally thank you, you won't have to guess if someone is out there telling 10 other people not do to business with you. Because, you know, those 10 other people are telling their friends and families too.