Wellco: Antenna Firm pays FTC charges that misled shoppers in regards to the performance of their merchandise
The Federal Trade Commission announced that it had reached an agreement with a television antenna company and its CEO, dispelling claims that they made false claims that the company’s products would allow users to cancel their cable service, and everyone receive their favorite channels for free. As part of the settlement, Wellco, Inc. and its CEO agreed on a $ 31 million judgment that the FTC wanted to suspend due to its inability to pay that amount – as long as the defendants paid $ 650,000.
As part of the announcement, Daniel Kaufman, acting director of the FTC’s Bureau of Consumer Protection said, “The defendants used every trick in the book to sell their antennas and amplifiers to people, including older adults, who wanted to save money on cable and satellite television channels. The People should be able to trust company claims and not discover they have been told lies after buying. “
Wellco sells indoor television antennas (sometimes called “mud flaps” antennas) and signal amplifiers under the brand names TV Scout, SkyWire, SkyLink and Tilt TV. According to the FTC’s complaint, Wellco has made a number of false claims about its antennas, including that users can no longer pay for cable or satellite television and still receive all of their favorite channels. A significant segment of users will receive more than a hundred premium channels in HD, the company’s antennas allow consumers to receive more channels than most other TV antennas on the market, and Wellco’s antennas are the number 1 HDTV antennas in the USA.
The FTC also alleged that Wellco used bogus consumer endorsements (which were only taken from competitor advertisements) in its advertising. In addition, the FTC alleged that the company also used websites that broadcast objective news reports and that fake news reporters conducted independent tests to prove the effectiveness of the antennas.
This enforcement measure is full of good guidelines for marketers looking to avoid problems with their own advertising. With the first day of spring only a few days away, here are some key tips if you plan on cleaning your own spring advertising:
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