Last week, the FTC and NY State office of Attorney General reached a settlement agreement with the Allstar Products Group to resolve a compliance inquiry.
In an effort to enhance the consumer ordering and customer service experience, the company has agreed to provide multiple opportunities for customers to confirm their orders before placing them and to clarify ordering and return procedures.
Will this settlement serve as a Direct Response wake-up call?
In conjunction with the settlement, Allstar issued a press release indicating that they were “pleased to have resolved this matter, and we’re proud that it resulted in positive change for our company. One of our goals has always been to provide a positive purchasing experience for our customers. While we have always believed our processes complied with the law, we are proud to have successfully worked with the FTC and the NY AG to improve them and set new standards for transparency.”
It is clear that the settlement provides important guidance on how companies in the direct response industry should deal with the disclosure of offer details to consumers. I encourage you to closely review this guidance moving forward to improve the customer experience. The good news is that Allstar has taken these issues seriously and proactively implemented changes, setting a new benchmark for the company.
In the end, higher standards of transparency benefit all participants in the marketplace—DRTV marketers and consumers alike.
To stay on top of the issues that could face your business, check out the upcoming Government Affairs Fly-In this May in Washington, D.C.:
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