Why do NZ advertisers think it's ok to break the law, online?

Forums › Off topic › Why do NZ advertisers think it's ok to break the law, online?

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Ultimate Geek

#982689 9-Feb-2014 13:07

gzt:
kenkeniff:
gzt:
kenkeniff:
gzt: There's no excuse for that. You have the evidence, fill out the form:

http://www.comcom.govt.nz/the-commission/making-a-complaint/online-complaint-form/

Maybe I'll give them a call on Monday and see if they'll honour their advertised offer first, if not then I'll have something to complain about.

Then you would have two things to complain about. Might as well get the first part under way. CC will take a while to get back anyway.

I'd have to work out whether it was worthwhile though..

Telecom puts the retail price of a Samsung Galaxy S4 4G+ at $1049, so for that price I would expect a free 7" Samsung Wifi Tab.

PriceSpy tells me a S4 LTE+ ($700) plus a 7" Galaxy Tab ($242) equals only $942.00

Good point there's no price on that Telecom ad. Telecom can offer the combination to you the complainer at any price they like and still meet the offer claimed.

But yeah, the target specifically is small payment + contract. It is not just a simple 'buy' as they make out in the ad. The ad is misleading click bait.

Yeah so this actually make it kind of worse as they're duping the uninformed buyer twice; advertising a misleading deal that isn't even that good!

freitasm

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#982690 9-Feb-2014 13:08

TimA: I am sure they only generate income from clicks??
I have never clicked an ad intending to follow that with interest.

Your assumption is incorrect. Ads generate revenue in many different ways:

CPC (Cost Per Click): pays when clicked
CPA (Cost Per Action): pays when something happens (a sale, a newsletter signup, a trial download)
CPM (Cost Per Mile): pays per impression

The most common is CPM. It means an advertiser will pay for the ad when it's shown, regardless of anything else (no need to click or act on the ad).

Yes, blocking ads will reduce revenue, regardless if you clicked or not.

mattwnz

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#982692 9-Feb-2014 13:10

kenkeniff: .

Why to these companies think it's all good to put stuff online that they wouldn't dare to stick on a billboard or TV ad??

I see a lot of this type of thing too. A classic one is a nz retailer not mentioning the that price excludes gst in the ad, and you don't find that out until you click on the ad. I wonder if is due to google being offshore, as well as the adservers, so these companies think that they are not bound by the same nz advertising laws? Also with txt ads these companies don't have much room to add additional text.

I personally don't block ads, and regally click on them if they are of interest.

Coil

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#982693 9-Feb-2014 13:11

freitasm:
TimA: I am sure they only generate income from clicks??
I have never clicked an ad intending to follow that with interest.

Your assumption is incorrect. Ads generate revenue in many different ways:

CPC (Cost Per Click): pays when clicked
CPA (Cost Per Action): pays when something happens (a sale, a newsletter signup, a trial download)
CPM (Cost Per Mile): pays per impression
The most common is CPM. It means an advertiser will pay for the ad when it's shown, regardless of anything else (no need to click or act on the ad).

Yes, blocking ads will reduce revenue, regardless if you clicked or not.

Fair enough, Never looked too far into it myself to know how it is calculated.
On average what one generates the most revenue for GZ?

freitasm

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#982695 9-Feb-2014 13:12

CPM. If you use adblock consider whitelisting Geekzone or buying a $25/yr subscription.

gzt

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#982697 9-Feb-2014 13:24

kenkeniff:
gzt:
kenkeniff:
gzt:
kenkeniff:
gzt: There's no excuse for that. You have the evidence, fill out the form:

http://www.comcom.govt.nz/the-commission/making-a-complaint/online-complaint-form/

Maybe I'll give them a call on Monday and see if they'll honour their advertised offer first, if not then I'll have something to complain about.

Then you would have two things to complain about. Might as well get the first part under way. CC will take a while to get back anyway.

I'd have to work out whether it was worthwhile though..

Telecom puts the retail price of a Samsung Galaxy S4 4G+ at $1049, so for that price I would expect a free 7" Samsung Wifi Tab.

PriceSpy tells me a S4 LTE+ ($700) plus a 7" Galaxy Tab ($242) equals only $942.00

Good point there's no price on that Telecom ad. Telecom can offer the combination to you the complainer at any price they like and still meet the offer claimed.

But yeah, the target specifically is small payment + contract. It is not just a simple 'buy' as they make out in the ad. The ad is misleading click bait.

Yeah so this actually make it kind of worse as they're duping the uninformed buyer twice; advertising a misleading deal that isn't even that good!

You're right there as well. Take a screenshot of the target pages with the RRPs:

Commerce Commission: Because of this consumer perception, it may be misleading for a retailer to make a comparison with an RRP unless it is the genuine manufacturer's RRP and reflects a price at which the item is readily available in the local market or online.

Example: An appliance retailer advertised a number of sales over a period of four months. Each good advertised had a stated recommended retail price, with the retailer's "sale" price which was significantly cheaper, and the percentage saving. The recommended retail prices were not the retailer's normal selling price; in fact the sale price was the normal selling price. The company was convicted and fined.

The first step is reporting the issue to the CC - instead of making life really hard for some innocent Telecom CSR.

Personally I think you would be doing a worthwhile service raising that. Advertising like that is seriously annoying.

mattwnz

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#982698 9-Feb-2014 13:29

gzt: only $ CSR.

Personally I think you would be doing a worthwhile service raising that. Advertising like that is seriously annoying.

If they decide to honour it though and then fix the advert, there would be no need for a compliant. They however may be best to ask it to be escalated to management to discuss it. I think it is fair to at least discuss it with them first, as it may have just been an oversight.

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gzt

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#982699 9-Feb-2014 13:29

By the way those price spy prices are most likely parallel imported. You will need to look at Noel Leeming / Dick Smith / HN etc for actual retail prices.

If you're just looking for leverage to squeeze a good deal out of Telecom I think you'll find that a frustrating process. Submit it to the CC and let Telecom come back with a genuine offer that is reasonable and meets the spirit of their (awful) clickbait.

Win/Win on both counts.

jeffnz

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#982720 9-Feb-2014 14:00

I'm a bit lost here, a Telco (not a shop) advertisers a phone and free tablet based on retail price?

So you find its on a term contract, why is that a surprise they are a Telco not a retailer selling just phones and using pricespy is BS as they, as has been said, are most likely parallel impoirted so not comparing apples with apples.

What is the issue have we been so dumbed down we need everything explained to us if not we go baying for blood.

I was always tought Çaveat Emptor'(let the buyer beware) and still live by that, to those of you that don't tough luck you will hopefully learn.

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jarledb

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#982723 9-Feb-2014 14:07

TimA: People now understand why i use adblock.

So you don't really think Geekzone is worth anything, since you have not bothered to get a subscription to get rid of the ads?

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kenkeniff

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Ultimate Geek

#982726 9-Feb-2014 14:11

jeffnz: I'm a bit lost here, a Telco (not a shop) advertisers a phone and free tablet based on retail price?

So you find its on a term contract, why is that a surprise they are a Telco not a retailer selling just phones and using pricespy is BS as they, as has been said, are most likely parallel impoirted so not comparing apples with apples.

What is the issue have we been so dumbed down we need everything explained to us if not we go baying for blood.

I was always tought Çaveat Emptor'(let the buyer beware) and still live by that, to those of you that don't tough luck you will hopefully learn.

You've got your wires crossed; Pricespy has nothing to do with it besides simply comparing whether or not it would be a good deal for me if Telecom honored the advertised offer or if I could still get the comparable devices cheaper elsewhere.

Not saying telecom must match another stores prices but if I did pursue the advertised offer I would expect to get an S4 4G + 7" tab for the standard price Telecom usually retail the phone for (listed as $1049 on their website).

MikeB4

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#982728 9-Feb-2014 14:11

The advertisement clearly states terms and conditions apply, it is a condition of sale that it requires a contract, therefore I cannot agree that they are breaking laws.

Coil

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#982729 9-Feb-2014 14:12

jarledb:
TimA: People now understand why i use adblock.

So you don't really think Geekzone is worth anything, since you have not bothered to get a subscription to get rid of the ads?

Thats a very twisted way to think. Why you trying to push me into an argument intending to get a negative answer out of me?

Addition to this, Once i reach 1000 posts, I have something more invested in the site i would get a sub.

gzt

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#982732 9-Feb-2014 14:18

Well I'd hate to see something redone that's already been completed earlier in the thread.

kenkeniff

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Ultimate Geek

#982733 9-Feb-2014 14:20

KiwiNZ: The advertisement clearly states terms and conditions apply, it is a condition of sale that it requires a contract, therefore I cannot agree that they are breaking laws.

That buyer beware attitude sort of negates a few centuries worth of development as a civilised society.

Perhaps you'd be happier living in a wild west where you can trust no-one and solve all conflicts based on the size of your balls.

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