Unfair Word-of-Mouth Marketing Can Put You In Jail

word-of-mouth-marketing-jailThe European Union (EU) Unfair Commercial Practices Directive (UCPD) was adopted three years ago. On May 26, 2008, the United Kingdom’s Department for Business Enterprise and Regulatory Reform (BERR) is implementing this directive through Consumer Protection from Unfair Trading Regulations.

If you’re doing word-of-mouth marketing, you should be concerned with the directive and the regulations promulgated to enforce it.

Why?

Your new duties include [Read more...]

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Samsung – Word-of-Mouth Marketing and Consumer Protection

I purchased a Samsung television several months ago that was defective because the menu screen popped on randomly and repeatedly unless the TV was turned off unplugged, and plugged back in again.You would think that Samsung would be embarrassed by having such a defect in one of its products. Nope.

samsung warranty

The warranty provided for the TV to get in-home service “where available.” Translation: Not available in the metro area where I live that has a population of 5 million. Hmmm. Just a hint of deceptive trade practices…and then it got worse.

Filling out the paperwork, scanning in the receipt and uploading it, packing the TV, and hauling it to UPS to ship (at my expense) for repairs was just the beginning.

Samsung received the TV ten days ago (per UPS tracking) but only acknowledged receipt after two lengthy phone calls that involved Press #5, Press #1 etc., being placed on hold repeatedly, and speaking to room temperature IQ drones who had memorized scripts but lacked either the authority or incentive to actually provide customer service.

Now here’s where it gets even better. Samsung provided an option where one could receive a refurbished model if it would take more than 3 business days to repair the defective TV. I chose that option.

However, the last customer service drone denied the existence of the option and said that I could expect to wait another 14-21 business days calculated based on their erroneous decision to claim receipt of the TV yesterday instead of 10 days ago when they actually got it. He’s probably still trying to anatomically do to himself what I recommended in response.

What’s the important lesson in this?

Word-of-mouth marketing is a double-edged sword. While I frequently refer clients and friends to goods and services that are excellent, when a company like Samsung displays this level of arrogance/incompetence/disdain for the customer, I’ll be happy to let others know of my experience too.

samsung warranty

As for Samsung, the company is about to get an expensive lesson in both word-of-mouth marketing and consumer protection laws…one that is more entertaining than a television show. I suspect they’ll try to shoot the messenger instead of fixing their internal problems.

There are important consumer protection laws at the federal and state level that may protect you in a similar situation. And if you own a business, you should be concerned about a consumer who makes a claim under those laws. Of course, in either case, consult your attorney to discuss your specific situation. This post isn’t legal advice.

For a related overview of consumer protection and word-of-mouth marketing, please watch the following video or listen to the podcast.

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…And stay tuned.

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