Don’t let these ad traps fool you

Want to save 50 percent, get a product free or have a manufacturer’s warranty cover an expensive purchase for life? Of course you do, and advertisers know it. Consumer Reports says that while federal and state laws generally ban the use of misleading or deceptive advertising, regulators can’t monitor everything, and seductive half-truths and outright deceptions are common.

So it’s up to you to figure out what’s true, what’s false and what’s pushing the envelope. Consumer Reports notes these advertising terms you shouldn’t take at face value:

‘Satisfaction guaranteed’

Federal Trade Commission guidelines say that companies should use “satisfaction guaranteed” or “money-back guarantee” only if they’re willing to give full refunds to unhappy customers. The guidelines say that companies must disclose any conditions or limitations, such as a time limit.

Some companies’ satisfaction guarantees are friendly. The website of retailer Lands’ End says you can return any product you’re not happy with at any time for a full refund or exchange. But others are less so. Under Michelin’s 30-day satisfaction guarantee, if you’re not 100 percent satisfied with your new tires, you can return them — but for an exchange, not a refund. And if you’re not 100 percent satisfied with the replacement tires, forget it — the policy applies only to the first set.

‘Going out of business’

New York City consumer officials recently fined a shop that sells rugs, antique furniture and other items, accusing it of running a going-out-of-business sale without a license. The company, operating under a slightly different name, had held a going-out-of-business sale at the same location nine months earlier. But even at a legitimate going-out-of-business sale, don’t assume everything’s a deal. While checking out the Circuit City liquidation sale some years back, Consumer Reports found a copy of the weekly sales circular that would have been in effect had the chain had not gone belly-up. A 50-inch plasma television being liquidated for $1,799 would have been on sale for $1,500. Consumer Reports also found a better price at a retailer that was not going out of business. Yet it saw lines of bargain-chasing customers snaking around the store.

‘Lifetime warranty’

The term “lifetime” has no legal meaning by itself. It can refer to a product’s lifetime, not yours, and that could mean the period of time a retailer carries the item, the manufacturer still makes it, parts are available or you still own it.

So if you’re hoping to use that full lifetime warranty from Milgard Windows & Doors as a selling point when you market your home, you might be disappointed. In that case, “lifetime” means as long as you own your home. Sell it and the warranty for the new owners converts to 10 years from the date the original warranty went into effect.

‘We will not be undersold’

Many stores guarantee they have the lowest prices, promising to match or beat a competitor’s price before or after you buy. But those promises often come with lots of restrictions in the fine print. Walmart stores won’t match online prices, and Sears won’t price-match Internet-only retailers.

‘Free’

The word “free” is like a powerful aphrodisiac, so it’s a favorite among retailers. FTC guidelines say that if you must buy an item to get something free, the price can’t be inflated to offset the cost of the free item. And all conditions must be disclosed.

But think about it: The regular price must be pretty steep for companies to give away stuff and still make a profit. Another catch is being asked to pay something to get a free item, such as additional shipping and handling that may equal or exceed the item’s cost.

Then there are “free trials” that aren’t free at all when the company winds up charging your credit card for a monthly service without telling you it will if you don’t cancel in time.

2014 Consumers Union Inc.