Present Perfect: Doing Right By Holiday Shoppers

If the word from Wall Street is any indication, consumers will be making a list and checking it twice this holiday season to find ways to stretch their gift giving budgets. But there’s good news for direct marketers. According to reports, 30 percent of holiday dollars will be spent online or through telephone or catalog sales. Savvy sellers know this is the time to brush up on the basics of complying with the law.

• Compare and contrast. Consumers on a budget will be more likely than ever to comparison shop this season. They’ll be scrutinizing what you say on your website to grab the best deal at the lowest price. The law gives you a lot of leeway in how you pitch your products – as long as what you say is true and you can back up objective claims with solid proof. Before the holiday rush, review your website to make sure your advertising claims meet that standard.
• “Three easy payments of…” Consumers on a budget appreciate the convenience of payment plans. But as recent law enforcement actions make clear, disclosing the details of the deal in fine-print footnotes doesn’t cut it. The law requires that sellers explain the financial facts in a way consumers will understand.
• Signed, sealed, and delivered. If you make claims about how fast you process orders – for example, “Delivery by December 21st” or “We ship within 24 hours” – you need more than wishful thinking to back up those promises. But what if your ads don’t say anything about delivery time? According to the FTC’s Mail Order Rule, which also applies to internet or phone orders, you must have a reasonable basis for believing you can ship within 30 days. For more on prompt delivery, read A Business Guide to the Federal Trade Commission’s Mail or Telephone Order Merchandise Rule.
• Add an extra helping of security. Many companies bring on extra help to handle the holiday rush. Especially during your busy season, maintain your usual high standards for protecting customers’ sensitive information. Limit access to account data and credit card information on a need-to-know basis. Visit www.ftc.gov/infosecurity for tips on creating a safer workplace.
• Many happy returns. Sometimes even the greatest gift may turn out to be not quite right. That’s why it’s important to disclose your return policy up front so that buyers can make an informed choice. If there are conditions or limitations on getting a refund or making an exchange, make sure they’re clear and conspicuous. As successful direct marketers know, graciously handling returns with a minimum of red tape during the holiday season wins consumer loyalty year-round.