Financial Times

Advertising tempts people to even violate laws!
Ever since Sri Lanka's economy was liberalised in the late 1970s, the private sector has been driven by the urge and need to sell, sell and sell! If you look at all the advertisements, it is intended to tempt consumers artificially, create a need when the need is not there and turn non-essentials into essentials. Often companies selling consumer goods are least bothered about after-sales or customer service and this is clearly seen from the number of complaints in the newspapers from irate readers on bad products and how companies respond to a complaint.

In this drive and desperation to keep up with the furious pace of growing markets and competition some companies may be even violating the law - knowingly or unwittingly - using advertising creativity as an excuse. In other cases, they are selling products and tempting consumers who are in turn violating the law of the land.

A good case in point is the enticing offers by insurance companies that advertise on-the-spot payments for road accidents. Ask any policeman and he will tell you that as a policyholder of such a quick-fix insurance policy, you would be violating a basic law where accidents should be reported forthwith.

In recent months, there have been a plethora of advertisements by these insurance companies that offer insurance payments on the spot for road accidents involving your car. In some instances, if the vehicle is badly damaged and needs repairs at a garage, the company also offers a temporary car for the policyholder.

The scheme has caught on like wildfire as it reduces the hassle of reporting an accident to the nearest police station and then taking that police entry and claiming insurance, a routine in normal policies.

This is a very convenient scheme, which many would be attracted to. But policyholders who make use of this scheme - and don't report an accident - are in clear violation of section 161 of the Motor Traffic Act, which says every road accident must be reported to the nearest police station "forthwith." While the policyholder is liable to prosecution, the insurance company is ironically not the guilty party since every motorist is expected to be aware and observe the law or face punishment for any violation.

The question is how many policyholders have reported an accident to the police or waited for the arrival of the insurance company, received payment on the spot, negotiated with the other driver a payment for damages (if the policyholder is the offender) and gone away?

A senior police officer said that in addition to reporting an accident being compulsory by law, some of the other reasons why reporting accidents has become necessary are for research purposes by the police. "These accidents don't get recorded in the number of accidents per year which then would not provide a proper assessment of road accidents to the authorities.

It is also important for the police to ascertain whether the accident was caused by malfunctioning of the vehicle, the driver's condition or any other reason," he said. So think twice before you subscribe to these easy insurance schemes.

Misleading the public
Two weeks ago a young private sector executive was attracted to a newspaper advertisement that offered a leasing package on a car at a "drive away price of 29,999 rupees." There were no other payments indicated in the advertisement.

It simply said and clearly implied that anyone can lease a car at this "monthly" payment. Tempted by the offer, the young man called the car company to get more details and place a booking, only to be shocked and disappointed.

"You have to call to realise that they don't know the meaning of the word drive away," he said. On inquiry, he was asked to pay a down payment of Rs 750,000 in addition to the Rs 29,999 for a period of five years and then a balance of Rs 200,000 at the end of the period!

The angry man reprimanded the sales representative saying they had no sense of responsibility and was totally misleading the public.
It was simply a ruse to get people to call.

The hapless salesman said, "Yes sir people are scolding us, it's not our fault this gimmick is done by … leasing" only to be told by the would-be customer that they should not be linking up with such leasing companies that mislead the public.

Some other car leasing ads also similarly advertise a "drive away price" at unbelievable rates but have an * (asterisk) which says in very small print "conditions apply".

Most people miss this part because it is in small print.
Now why aren't these conditions explained clearly in the ad? Is it to avoid explaining how much more than the given rate on the ad the customer has to pay to acquire a vehicle, which then doesn't make the offer so tempting?

Ad of the month!!
There were quite a few but my choice would be the heart-warming series by Maliban Ltd to mark its 50th anniversary. The one that especially caught my eye was the old man and his daughter being "tailed' by a car, raising suspicions. The old man, a teacher, looked familiar to the driver who however couldn't recall where he had seen this face before.

The car moved a few inches and stopped and this ritual was repeated two or three times until the driver - now a young, handsome man - got off and said "Sir" - recognising his former teacher who then broke into smiles recognising his former student.

The ads are to do with caring in society and projecting the biscuit company as a company that has cared for its customers for the past half a century.
Well done, Maliban!!
- Business Editor

Prestigious Asian competition for ad industry
The 4As, Sri Lanka's main fraternity of advertising agencies, has invited advertising firms here to take part in the 'Asia Travels and Tourism Creative Awards 2004."

Organisers of the awards scheme are inviting advertising agencies, in-house design groups, travel operators, hotel owners, and tourism boards etc. to enter this prestigious Asia Pacific regional award show.

"We are looking for the best work in 29 categories, which includes press and TV advertisements, brochures, posters, websites, branding, photography, newsletters and editorial work, that encourage visitors to destinations within this region," the organisers said in a statement circulated by the 4As to its members.

The work of the finalists will be put on exhibition in several cities around the region. The winners will be announced at a Gala Dinner at the Grand Hyatt in Singapore on October 15, 2004.

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