Archive for the ‘hall of shame’ Category

Hall of Shame: Countrywide Home Loans

Friday, January 16th, 2009

Countrywide Home Loans - Foreclosure sign

Marketing is about persuasion, so occasionally marketers stretch the truth.

But how bad is a company when it mocks it’s own advertising in a court of law?

Pretty bad.

Countrywide Home Loans is no stranger to litigation and is considered by some to be among those lenders most responsible for the mortgage crisis.

Maybe it should come as no surprise when then they call their own advertising “mere commercial puffery.”

Loan modifications have been marketed throughout the industry as homeowners sold irresponsible adjustable rate mortgages scramble to find a way to avoid foreclosure and pay their ballooning mortgage payments. Countrywide’s current modification offers say “We can help you,” while they pursue foreclosures against customers seeking just that.

From MSNBC.com:

Saying the modification offers are “only Countrywide’s vague advertisements,” attorneys for the lender are asking the court to throw out a lawsuit alleging breach of good faith, fraud, negligence and misrepresentation, which was filed on behalf of a family that was refused a loan modification by the California-based company.

For that, Countrywide Home Loans, you deserve a spot in the Responsible Marketing Hall of Shame.

What do you think of Countrywide’s marketing practices?

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. . .

Inspiration: Eric Weaver via Twitter.
Image: Minnesota Public Radio

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Posted in advertising, deceptive marketing, ethics, hall of shame | 3 Comments »

Hall of Shame: Classmates.com

Monday, November 17th, 2008

“Your former classmates are trying to contact you! Upgrade now to see their messages!” You’ve received Classmates.com spam and endured their irritating yearbook ads.

While most consider the “classmates are trying to contact you” message a marketing trick, Anthony Michaels of San Diego, CA took Classmates.com at their word and paid $15 for an upgrade only to discover that—surprise!—none of his former classmates were trying to reach him.

Michaels realized he probably wasn’t alone and hired an attorney to pursue a class action lawsuit. The suit alleges intentional misrepresentation, negligent misrepresentation, negligence, fraudulent concealment, and violation of California business and professions code.

Here’s the summons and complaint:

View the classmates.com summons and complaint

Classmates.com’s reputation was already poor: The Better Business Bureau and consumeraffairs.org have been logging consumer complaints against the company for years.

Classmates is innocent until proven guilty, but in the court of public opinion no trial is needed. Their ubiquitous advertising and questionable email marketing tactics have made them an easy target—and have earned them a place in the Responsible Marketing Hall of Shame.

So, what do you think if Classmates.com?

Ever been duped by them?

Can they redeem themselves?

Scroll down to share your thoughts.

. . .

A little irony: While researching this topic, countless sites that featured this story had advertising on them from—you guessed it—Classmates.com. Here’s one:

classmates.com ad featured next to story about lawsuit against classmates.com+enlarge

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. . .

Source (including summons and complaint): Wired.com

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Posted in deceptive marketing, ethics, false advertising, hall of shame, social networking | 15 Comments »

Hall of Shame: Misleading mortgage marketers

Thursday, November 6th, 2008

Every homeowner gets them: Misleading letters from mortgage lenders informing you that you are eligible for a lower payment.

Here’s one I received a few months ago from Eagle Nationwide Mortgage:

Eagle Nationwide Mortgage - misleading letter

The letter above follows the typical template:

  • Your mortgage lender’s name is at the top, along with your “account number”
  • Contains the word “URGENT” and “ACT IMMEDIATELY”
  • It includes a notification that after reviewing your file, it’s been determined that you can save money if you contact them now

    • Sounds like a great deal, doesn’t it?

    Slow down.

    It’s not from your mortgage lender. It’s from their competitor that has acquired your mortgage information and is using it to lure you into moving your mortgage to them.

    Because they’ve used your lender’s name and information regarding your loan, you’ll open the letter and read it. Unless you read the fine print at the bottom or on the back of the page, you wouldn’t know it’s not your lender.

    I’ve received countless solicitations that have incorporated my current loan balance and payment, then showed how much the payment would be if I accepted their offer. For me, this crosses the line. I don’t want this information being used by marketers.

    And I especially don’t want it being used by lenders that use questionable marketing tactics. If they’ll do this, what else will they do with my personal data?

    This is clearly deceptive marketing, and for that, misleading mortgage marketers deserve a place in the Responsible Marketing Hall of Shame.

    So, have you received one of these solicitations? What’s your story?

    Comment below to share.

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    Posted in deceptive marketing, ethics, hall of shame | 2 Comments »

    Bumvertising: Welcome to the Hall of Shame

    Tuesday, September 16th, 2008

    Bumvertising is exactly what it sounds like: Advertising on the homeless.

    It started in 2005 when 22-year-old University of Washington grad Ben Rogovy was looking for a cheap way to promote another company he started.

    Here’s a quick overview:


    View this video on YouTube

    The Bumvertising debate has attracted local, national and even international media attention.

    Here are the Seven Keys to Responsible Marketing, and how Bumvertising measures up:

    1. It’s not casting responsible, as long as they exploit people desperate for any kind of help.
    2. It’s hard to determine if its environmentally responsible, since Bumvertising’s ads are taped to the bottom of the used cardboard signs used by the homeless.
    3. It’s not socially responsible.
    4. It’s not strategically responsible. This was a tactical idea executed without forethought or consideration of the consequences. Even fringe advertisers run the risk of implying “use our product, you’ll end up like this.” Online poker, casinos and alcohol couldn’t be a worse choice.
    5. It’s not execution responsible. This makes sandwich board marketers look dignified.
    6. It’s not message responsible. Bumvertising clearly doesn’t respect its audiences. And while you might think Bumvertising does break through the clutter, to many, the homeless are like ads already—they’ll avoid them whenever possible.
    7. It’s not ROI responsible. After three years, the only advertisers appear to be other companies started by Bumvertising’s founder, PokerFaceBook.com and StrategicDomination.com—two companies that won’t be appearing on any “fastest growing companies” lists anytime soon. In fact, the first company appears to be abandoned, and both companies shill Bumvertising prominently above the fold.

    Bumvertising is a bad advertising idea. It exploits the homeless, no respectable company would associate itself with the practice and it simply doesn’t work.

    As an advertising medium, Bumvertising is a failure, but as a way to gain media attention it’s a success.

    Rogovy knows this. The Bumvertising blog now features street videos that include altercations with a homeless man and other videos that will be passed around for all the wrong reasons, racking up site visits and increasing Google Adwords revenues.

    Like MTV’s Jackass and so many YouTube exploitation videos, it’s outrageous and brings out the worst in human nature.

    Even The Daily Show considered Bumvertising unscrupulous:


    View this video on YouTube

    Ben Rogovy is on his way to becoming the Johnny Knoxville of marketing. He doesn’t mind being known as the “poverty pimp” as long as he continues to get more media attention.

    Which makes the whole Bumvertising concept that much more insipid.

    Bumvertising: Welcome to the Responsible Marketing Hall of Shame.

    I can’t think of a single category that Bumvertising fits, can you?

    Comment below to weigh in.

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    . . .

    Thanks to my colleague Victoria Ostrovskaya for the tip.

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    Posted in casting responsible, environmentally responsible, ethics, execution responsible, hall of shame, message responsible, roi responsible, signage, socially responsible, strategically responsible, videos, viral marketing | 7 Comments »

    Deception is not Responsible Marketing

    Wednesday, June 11th, 2008

    Liberty Names of America regularly sends us expiration notices for our domain name renewals. Problem is, they aren’t our domain registrar. Their notices are formatted like invoices in a ploy to get us to transfer our domains to them.

    Click on the image below to take a closer look:

    +Click to enlarge

    Of course, when you give Liberty your credit card number and sign the front page you’ve approved the transfer of your domain.

    Nice.

    Is Liberty breaking the law?

    I don’t think so.

    There is a sentence that says “By moving your domain name to Liberty Names of America you can take advantage of the savings we have to offer,” and at the bottom, it does say “…transfer and renew” twice.

    But review the notice and tell me, are they aren’t asking for your business or trying to trick you into doing business with them?


    Deceptive marketing takes many forms

    This nonsense has been going on for years, of course. Mortgage companies implying you can reduce your payment, when they aren’t your mortgage company; checks that, upon deposit, transfer your long distance phone service; loss leader prices with absurd strings attached; direct mail designed to look like official government business and and the like all fall into this category.

    Even the the Better Business Bureau has gotten into the act. We regularly receive notifications of a “BBB inquiry” requiring our immediate attention. When we’ve responded, we learn it’s actually a solicitation for our company to join the Better Business Bureau. They quit calling me. But last week they called one of my partners.

    This isn’t an isolated case. It’s the way the BBB does business. Seth Godin received a call like this, and felt the same way.

    Unbelievable.

    These tactics often work due to the fact that as consumers we’re all dealing with information overload, and we’re so busy we process little things like this quickly, often without reading every word.

    I remember when I was in high school and college, I evaluated scams like these for my parents, who may very well have fallen for this tomfoolery.

    It infuriated me then and it infuriates me now.

    Are duped customers happy customers? Do they stick around? Do they refer others?

    I think not.

    Marketing likes this makes Responsible Marketers look bad, and for this reason, deceptive marketers, you belong in the Responsible Marketing Hall of Shame.

    Where have you seen deceptive marketing?

    Comment below to weigh in.

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    Posted in deceptive marketing, hall of shame, message responsible | 7 Comments »

    Marketing that makes you call for help

    Thursday, February 7th, 2008

    cordless phone

    My wife sent me an email the other day. It read:

    Help! We got another solicitation like before…it says to call 1-800-980-xxxx. We need to get off that list. They called over 6 times.

    I tried the number and you guessed it, I got the “We’re sorry. The number you have called is unavailable from your calling area.”

    Telemarketing isn’t inherently irresponsible. There are telemarketers that play by the rules. But we’re on the National Do Not Call Registry so we shouldn’t be getting these calls.

    Anytime you force a prospect to cry for help, you aren’t practicing Responsible Marketing.

    Tactless telemarketers, welcome to the Responsible Marketing Hall of Shame.

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    Posted in hall of shame | No Comments »

    Blog spam. Welcome to the Responsible Marketing Hall of Shame.

    Wednesday, January 16th, 2008

    Spam of any kind sucks. It especially sucks when you respond to it accidentally.

    That almost happened to me recently when a pesky blog spammer commented on a posting with this:

    Very interesting thoughts regarding Ad Age Trends for 2008: My take. But would you like to submit comments and backlinks on millions of blogs automatically? Blog Comment Poster will do it for you. Blog Comment Poster will increase your traffic, backlinks and earnings dramatically! Sounds cool? Yes, it is… the best automated comments posting tool on the Internet with many advanced features.

    Sure, Akismet caught it, but it also catches legitimate comments too. The Responsible Marketing Blog’s traffic is picking up quite nicely, but I don’t get so much spam that I can’t read the entire comment before approving it. I’ll bet this tactic works on blogs that get huge traffic. It has to, otherwise the spammers wouldn’t be doing it.

    Unbelievable.

    So, who do you think belongs in the Responsible Marketing Hall of Shame?

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    Posted in hall of shame | No Comments »