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Author Question: A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in ... (Read 100 times)

plus1

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on: Jun 29, 2018
A complaint concerning an allegedly misleading advertising practice by a carpet-cleaning service in the Houston area is filed with the local Better Business Bureau (BBB). Apparently, homeowners are expecting the price shown on the company's direct mailings and newspaper coupons (a price confirmed at the time the appointment is made) but are quoted a much higher fee once the crew arrives and inspects the carpets. The company's ads promise
  the latest in green cleaning materials and industrial techniques, but the cleaning fluids and equipment used by the crew are also suspect. Outline the path the complaint would take if it were to eventually arrive at the FTC. Specifically, list the organizations it would pass through, and in general terms, the actions that would need to be taken by each organization for the complaint to be forwarded on to federal regulators.

Question 2

____________ is an indirect observation technique that is conducted by reviewing data provided on billing statements to uncover information about service customers.
 Fill in the blank(s) with correct word


okolip

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Reply #1 on: Jun 29, 2018
Answer to Question 1

In a situation like this, the local BBB reviews the issue, often sent in the form of a complaint by consumers or competitors. It sends the complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus. If the NAD staff cannot resolve the complaint with the advertiser, in this case the carpet-cleaning service, it is passed along to the National Advertising Review Board (NARB). Its review panel hears the advertiser's case, reviews other evidence, and deliberates. It may dismiss the case, or it may convince the cleaning service to change the wording
in its advertising. If it does neither, it will then publicly identify the case, the advertiser, and its findings, and then forward the complaint to the FTC.

Answer to Question 2

Receipt Analysis


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plus1

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Reply #2 on: Jun 29, 2018
Thank you :)


okolip

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Reply #3 on: Jun 29, 2018
Happy to help you


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