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story category Apple: Who Believes Our Ads Anyway?
Company responds to iPhone 3G speed false advertising suit...
02:57PM Wednesday Dec 03 2008 by Karl Bode
tags: business · wireless · bandwidth · Mac · consumers · AT&T
Apple has been taking heat over global advertisements that show the iPhone 3G performing at speeds vastly faster than real world 3G (or 2G) networks operate. Two such ads were recently banned in the UK, to which Apple responded that the ads were "relative rather than absolute in nature." Here in the States, one 70-year-old San Diego resident filed suit against Apple for misleading advertising. Techdirt directs our attention to the fact that Apple this week responded to the suit, denying that the ads lie, but then adding this comment:
"Plaintiff's claims, and those of the purported class, are barred by the fact that the alleged deceptive statements were such that no reasonable person in Plaintiff's position could have reasonably relied on or misunderstood Apple's statements as claims of fact," Apple said in its answer.
In other words, we're not lying, but you're an idiot if you believed what we were saying. Of course there's a fairly obvious chasm (see video comparison) between the ads and real-world performance. Apple faces five lawsuits related to the performance (or lack thereof) of the iPhone when connected to networks in the real world, but the attorney for this false advertising case thinks their case "has the most teeth and the most legs to it."

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Forums » Apple: Who Believes Our Ads Anyway?
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ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Cost of doing business

Someone is always trying to gain a windfall via lawsuit.

wxboss
This is like Deja vu all over again.
Premium
join:2005-01-30
Jacksonville, FL
clubs:
·Comcast

Re: Cost of doing business

Doesn't AT&T offer a 30 day trial period on new activations (assuming the plaintiff was a new customer). Either way, there is still a window of opportunity to get another phone or cancel the contract.

If it's not working they way you thought it would, just return the damn thing.

I agree with ninjatutle See Profile here.
--
"A study in the Washington Post says that women have better verbal skills
than men. I just want to say to the authors of that study: Duh."
--Conan O'Brien

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Re: Cost of doing business

I was watching a segment about Walmart on CNBC a while ago. They said Walmart gets about 30 lawsuits a day. Thats over 1 an hour

BPX9918lA

@cox.net

said by wxboss See Profile :

Doesn't AT&T offer a 30 day trial period on new activations (assuming the plaintiff was a new customer). Either way, there is still a window of opportunity to get another phone or cancel the contract.
Apple passes on to AT&T a 15% restocking fee, even within the 30 day trial; so unless you get a rogue employee (or overly nice one) you'll pay that - the nice ones will take that 15% off your replacement phone.

asfasf1asdfas

@mindspring.com

Re: Cost of doing business

15% of MSRP? Isn't iPhone MSRP like $1200 or some crazy price? So 15% is $180.
james

join:2001-02-26
antarctica

Companies are always trying to make more money via exaggerating in their ads.

I do agree that no individual should be able to sue for the actions of a company that affect everyone, the government should be required to step in and investigate, and the money should go into a fund to finance later lawsuits and investigations.

wxboss
This is like Deja vu all over again.
Premium
join:2005-01-30
Jacksonville, FL
clubs:
·Comcast

Re: Cost of doing business

said by james See Profile :

Companies are always trying to make more money via exaggerating in their ads.
I agree with that.

I do agree that no individual should be able to sue for the actions of a company that affect everyone
This doesn't affect everyone. Consumers have an option to buy product A or product B etc... The plaintiff had an opportunity return a product that didn't meet his expectations.

...the government should be required to step in and investigate, and the money should go into a fund to finance later lawsuits and investigations.
Good Lord, that would be like giving a pimp legal authority to regulate prostitution.
--
"A study in the Washington Post says that women have better verbal skills
than men. I just want to say to the authors of that study: Duh."
--Conan O'Brien
james

join:2001-02-26
antarctica

Re: Cost of doing business

Advertisements do affect the general public, or atleast they have the capacity to. It's not like a person is being specifically targeted by the company, so they shouldnt be able to sue as an individual.
But really, aren't there already entities in place that are supposed to enforce truth in advertising?

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Cost of doing business

Well, the thing with lawsuits works like this. If you've been damaged in some way, you can sue. You may not win, but you can try. When you buy an expensive widget that doesn't perform as expected you have a fairly clear case of damages because of your outlay. Now, to win the case you'd have to show that you were wronged by deceptive/misleading/lying representations of the product. If you simply picked it and did no research, well, there's another term that applies: Let the buyer beware.

Typically such lawsuits are very small and minor and do not create a "windfall" for anyone. There are some exceptions, like product safety lawsuits where serious injury or death occurs because of a defective product.... but then again, without such checks and balances you'd have a lot of unscrupulous vendors selling dangerous goods for massive profit.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

wxboss
This is like Deja vu all over again.
Premium
join:2005-01-30
Jacksonville, FL
clubs:
·Comcast

Re: Cost of doing business

said by KrK See Profile :

If you simply picked it and did no research, well, there's another term that applies: Let the buyer beware.
Great point.

Obviously the iPhone has been around a while (with substantial amounts of reviews, opinions and facts littered around the Net), so there is a certain amount of onus on the part of the consumer to 'do their homework' and filter out any misleading hype. Something I would think a life-seasoned 70 year old would be capable of doing.

However small the windfall may be for him if this suit succeeds, I'm sure he only had the best interests of other consumers at heart.
--
"A study in the Washington Post says that women have better verbal skills
than men. I just want to say to the authors of that study: Duh."
--Conan O'Brien

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Cost of doing business

said by wxboss See Profile :

However small the windfall may be for him if this suit succeeds, I'm sure he only had the best interests of other consumers at heart.
He'd be limited to his damages (cost of phone + exit contract) unless it's class action. If it goes class action, the only ones who make windfalls are the lawyers. The consumers get a pittance back if that. (Sometime it's a coupon for a discount or some useless crap.)
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

said by ninjatutle See Profile :

Someone is always trying to gain a windfall via lawsuit.
quote:
Someone is always trying to gain a windfall via lawsuit. deceptive marketing, false advertising, bait and switch, and outright lying/blatant misrepresentation of their products.
There. Fixed it for you.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Re: Cost of doing business

You must be the one who submits all those comsumerist articles here.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Cost of doing business

said by ninjatutle See Profile :

You must be the one who submits all those comsumerist articles here.
You must be one of those Corporate shills that posts everything here defending Corporations left, right and center....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
BF69

join:2004-07-28
Camden, TN

said by ninjatutle See Profile :

Someone is always trying to gain a windfall via lawsuit.
or gain a windfall via deceptive marketing. which is worse? Hmmmm.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

This is California... you can sue over almost anything here

California = state of many lawsuits , legit or otherwise with huge payouts and cost.

The thing that bugs me most about the iPhone is its walled garden of 'no java', 'no flash' and basically 'no API other than ours which apps can only be obtained/purchased through us' attitude.

antwanp
ObamaBiden 2008 I voted, did you?
Premium
join:2002-05-14
Cedar Hill, TX
clubs:

Re: This is California... you can sue over almost anything here

That and Texas being home to patent lawsuits...

Hazy Arc

join:2006-04-10
Greenwood, SC

I Wonder...

...if anyone is offering an anti-virus app in the iPhone App store.
moonpuppy

join:2000-08-21
Glen Burnie, MD

Apple's new slogan

Lie Differently.


osxtasy

join:2008-07-03

edit:
December 3rd, @03:06PM

It "JUST WORKS"

It "JUST WORKS" LOL

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: It "JUST WORKS"

That didn't take very long. Guess they spend all day with these witty original zingers on their clipboard just waiting to CTRL+V.

Hazy Arc

join:2006-04-10
Greenwood, SC
·Embarq
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edit:
December 3rd, @04:43PM

Re: It "JUST WORKS"

And the answer is yes...I did have a picture of a baby crying on my clipboard.

osxtasy

join:2008-07-03

Re: It "JUST WORKS"

x2 (add me to that as well)


I like you Hazy Arc, keep up the good work!!

PREACH ON BROTHER!
EPS

join:2008-02-13
Hingham, MA

said by Dogfather See Profile :

That didn't take very long. Guess they spend all day with these witty original zingers on their clipboard just waiting to CTRL+V.
A shame, the iPhone owners have no copy and paste to paste their own responses,

(Just joking around, of course)

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

edit:
December 3rd, @05:11PM

Re: It "JUST WORKS"

Oh, snap!
DannyZ
Gentoo Fanboy
Premium
join:2003-01-29
Erie, PA

Broken link

the video comparison link in the summary is broken
mlundin

join:2001-03-27
Mishawaka, IN

Re: Broken link

works fine for me.
nnaarrnn

join:2004-09-30
Nitro, WV
·Suddenlink

They're not that great

A client of mine "upgraded" from a Blackberry to an iphone, and totally hates the iphone. Can't forward txt messages, can't create distribution groups for email or txt messages, it can't sync notes from the exchange server. It's still not a business phone (not that I would ever belive Apple could put out a business product)

jmn1207
Premium
join:2000-07-19
Reston, VA

Ludicrous Speed!

*All downloads performed on a closed network using a professional internet surfer.
russotto

join:2000-10-05
Collegeville, PA

Puffery

It's a fairly conventional defense against false advertising, that the claim was mere "puffery" not meant to be taken literally.

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

Re: Puffery

said by russotto See Profile :

It's a fairly conventional defense against false advertising, that the claim was mere "puffery" not meant to be taken literally.
Too funny! Is that the defense used for those pills that claim to make your banana bigger? Puffery!

Mchart
Super Joe

join:2004-01-21
Gurnee, IL
·RoadRunner Cable
·AT&T Yahoo


edit:
December 3rd, @03:25PM

Wow.

Now, i'm well aware that advertisements are not fully representive of the truth. However, to come outright and lie about a product like this - And then fully admit it is absolutely rediculous. The ad in question was selling the product for it's speed of loading / interface speed. Yet, the product in question is not this fast. Never was, never will be. Your average person would goto the store and buy the iPhone based on this advertisement. Your average 'reasonable' person would make this mistake.

I've haven't liked Apple for quite a while. I bought the iPhone because it truly is a superior device. However, to outright lie like this, and then blame the consumer for beleiving their lie is rediculous. Shame on Apple. I hope they loose a lot of money for this.
--
THIS IS SPENCER. MISSION ACCOMPLISHED - I HAVE JOE. RETURNING TO BASE.

jsz0

join:2008-01-23
Jewett City, CT
·Comcast

Re: Wow.

The demo in the video has been successfully completed on 3G in 42 seconds. So a 12 second difference. Is it a big deal? I don't know. Depends on the consumer.

I went to Taco Bell and the food looked nothing like it did on TV.

I started drinking Bud Light but I don't seem to be any cooler or hip.

I chewed some Dentine Ice and it did not start snowing.

etc.

Mchart
Super Joe

join:2004-01-21
Gurnee, IL
·RoadRunner Cable
·AT&T Yahoo


edit:
December 3rd, @04:44PM

Re: Wow.

said by jsz0 See Profile :

The demo in the video has been successfully completed on 3G in 42 seconds. So a 12 second difference. Is it a big deal? I don't know. Depends on the consumer.

I went to Taco Bell and the food looked nothing like it did on TV.

I started drinking Bud Light but I don't seem to be any cooler or hip.

I chewed some Dentine Ice and it did not start snowing.

etc.
If you actually own the iPhone 3G - You would know that it is nowhere near as 'zippy' as they show it in the commercial. Like I said in another post - I know it's an ad. It doesn't fully represent the truth. However, the fact that Apple said 'No reasonable person would expect such a thing...' is being arrogant as all hell. Of course, I guess I should expect as much from mApple.

PolarBear
The bear formerly known as aaron8301

join:2005-01-03
Riverside, WA
·CableOne

Re: Wow.

said by Mchart See Profile :

Of course, I guess I should expect as much from mApple.
Next they'll claim their headquarters are at the bottom of the ocean, then get out of it by saying no reasonable person should believe that.

+1 for reference, man!
iansltx

join:2007-02-19
Fredericksburg, TX
·Comcast
·Qwest.net
·magicjack.com
·BeeCreek Communica..
·Sprint Mobile Broa..

Truth In Advertising

Apple can fudge a bit, but if they specifically state that the feature they're advertising is X good (quantifiable in some sense by what's in the ad)...and it isn't...that's false advertising.

You see a lot of "screen images simulated" disclaimers when looking at PDA/phone screens online or on TV. The difference with Apple is that the screen images simulated are not the main feature of the phone...
Gilitar

join:2000-11-20
Mobile, AL

At least it works

Apple's stuff just works.

.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: At least it works

said by Gilitar See Profile :

Apple's stuff just works.
you are missing the point.
Gilitar

join:2000-11-20
Mobile, AL
·AT&T Southeast

Re: At least it works

said by morbo See Profile :

said by Gilitar See Profile :

Apple's stuff just works.
you are missing the point.
No I'm really not. Microsoft has ads showing computers running Vista without problems.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME


edit:
December 3rd, @05:02PM

I would expect it to... its a pretty tightly walled garden.

All applications MUST be obtained through App Store
No other API's allowed (i.e. flash, java)

I could say the same thing for Google/Android on the G1... it just works as well - and it is open source. Of course, you'll probably have every keystroke, snarfed over to Google for analysis along with your emails, and sold off to data mining operations.

Titus Pullo
I came, I saw, I slept

join:2004-06-26

Amusing watching

Apple become its own worst enemy.
--
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast

AT&T and Apple should open a bologna delicatessen

Both Apple and AT&T are B.S. artists. Apple puffs the performance of the iPhone and AT&T puffs the performance of their network. I live in Central Florida and have had to let a friend use my Verizon handset because there was no signal for their AT&T handset, when they had to make an urgent call. This happened more than once, in different locations.

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: AT&T and Apple should open a bologna delicatessen

And what wireless provider doesn't blow smoke up their ass? Whether it's more bars or "unlimited" data, it's all bull.

Dogfather
Altitude is your friend
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Bloodsucking lawyers


Cars can't drive on buildings, say it isn't so
Even Ford had to put a disclaimer in their Edge commercial when they had their CGI ad of the Edge driving on building tops.

Apple should know better than to have a commercial without 17 paragraphs of disclaimers including the iPhone not working on the Moon.

See 6 replies to this post

Matt
You can't fix stupid
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Ironic

A friend of mine who bought an iPhone was pissed because he actually thought it was going to work as fast as the commercial showed. I was floored that someone would think it really operated that fast, but I guess for non-techie folks they have no way to know until they try.

That was a nice comparison video, I didn't realize the iPhone was THAT slow however. Wow.
Ope

join:2001-02-11
Richmond, VA

Video Camparison

If that Video Comparison is correct... then the advertising is 3 times as fast as real world?
In my opinion... AGAIN my opinion...
That's a bit much.

TCub
impossible
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Olmsted Falls, OH
clubs:
·Cox HSI

Re: Video Camparison

said by Ope See Profile :

If that Video Comparison is correct... then the advertising is 3 times as fast as real world?
In my opinion... AGAIN my opinion...
That's a bit much.
I've seen that video and they must not be getting good reception because I can testify, with full 3G service my browser is definitely not that slow! Not as fast as the commercials but its no where near that slow!

TCub
impossible
Premium
join:2008-09-03
Olmsted Falls, OH
clubs:
·Cox HSI

Other companies don't "lie"

When I see internet advertised at being 3 mbps and I get it and run a bandwidth test and it doesn't come back 3 mbps, can/should I file lawsuit? Hell No!

Speeds are ALWAYS exaggerated in advertisements. This is nothing new. And the fact is, the actual product, though definitely not as fast as in the commercials is still pretty damn fast. Nothing I complain about, which leads me to believe these people are just out to make a quick buck.

I'm not saying I like companies "lying" to me, but again they've only 30 seconds to sell you their product and how often does this stuff work as well as in the commercial?
--
one man's burden playing on my mind
one man's burden got me just in time

TigerLord
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·Bell Sympatico

Host:
International Broa..
Videotron

Re: Other companies don't "lie"

That's not the point.

Internet is a service that delivers "up to" 3mbps, is advertised as such, and frequently, the fact the people cannot achieve such speeds is because they live too far from the CO, bad cabling, etc... ie. not the provider's fault.

However, there are PLENTY of people who will get the 3mpbs.

In this case, Apple is selling a product and putting it all on speed, the whole AD claiming how fast it is and showing the execution of tasks what in RL could NEVER, under any circumstances, achieve those speeds. Much different.

Then again I've looked at your post history, most of it in the Apple forum, and you seem to be a biased Apple fanboy, arguing against anyone who have something bad to say about Apple or report a negative experience.

You need to see beyond your love for the brand and be objective here.

TCub
impossible
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clubs:
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Re: Other companies don't "lie"

Haha, your really taking this seriously? Looking through my post history and all?

I'm not afraid to admit it, I'm an Apple fanboy. What's the problem? I don't "hate" everything else. I just use Apple primarily because it's something I'm familiar with and it works for me. I have absolutely nothing against other companies, in fact I have a good amount of respect for Microsoft with all the hardware and software they build (things outside of Windows).

If Apple said, "This is exactly how your iPhone will act!" then I'd be pissed, but they don't mention that anywhere. If you don't know to take commercials with a grain of salt thats your issue for lacking common sense. When I see a commercial for anything I don't assume it's going operate exactly how they show it.

Especially something like a cell phone and network speeds, thats AT&T, not Apple. If you read my post you'd see I made a statement based off my observations, nothing fanboy-ish about it.

If you wanted me to make a fanboy statement I could have said something like... "How could anyone sue Apple? They're the greatest company in the entire world! Everything they make is perfect including the iPhone! Theres absolutely NO issues with the iPhone what so ever!"

....Pfft, yeah right!
james

join:2001-02-26
antarctica

Re: Other companies don't "lie"

said by TCub See Profile :

If Apple said, "This is exactly how your iPhone will act!" then I'd be pissed
Unless they specifically state that their demonstration is NOT what you will get, then it is implied that what you see is what you get. Notice how EVERY other product out there says "time lapse 30 mins" or "dishes pre soaked for 10 mins" because they know that people will expect to get what they are shown unless they are informed that it's just compressed to fit into the 30 second commercial, and even then they will get complaints but are protected because of the disclaimer.

Considering the rate that technology advances these days, it's not that out of line to expect the iPhone to be so advanced that it actually performs as in the commercial, especially considering how "amazing" and "advanced" the iPhone is supposed to be.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

said by TCub See Profile :

If Apple said, "This is exactly how your iPhone will act!" then I'd be pissed, but they don't mention that anywhere. If you don't know to take commercials with a grain of salt thats your issue for lacking common sense. When I see a commercial for anything I don't assume it's going operate exactly how they show it.
That's the old "the other guy did it so that makes it ok" argument, which is based on moral relativism (and fallacy).

Must of us know and agree with the principles of caveat emptor (if we have a lick of sense) but that doesn't excuse any company from gilding the lilly when advertising a product; it's like selling snake oil cure-all. Somewhere, sometime, someone has to draw the line and call companies out on this sort of BS. If it's Apple, so be it. I don't care what company it is.

Apple shouldn't represent something as such (video representation) and then when called on it, make the speciously disingenuous argument that "Plaintiff's claims, and those of the purported class, are barred by the fact that the alleged deceptive statements were such that no reasonable person in Plaintiff's position could have reasonably relied on or misunderstood Apple's statements as claims of fact ..." That's one steaming pile if I've ever smelled one. The argument implies the relative meaning of "reasonable persons" and goes further by suggesting how that person should "reasonably" interpret Apple's intent. That's for a judge or jury to decide; not Apple.
--

Count Zero
MD2Be
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said by TCub See Profile :

I'm not saying I like companies "lying" to me, but again they've only 30 seconds to sell you their product and how often does this stuff work as well as in the commercial?
Damn right.

No to ESPN

@comcast.net

EXTRA, EXTRA, EXTRA - NEW LIE

News Flash:
A new great lie has been added to the original three Apple Computer announced today. The fourth great lie is:

You believe what I told you?

asdfasdf3212311

@bell.ca

Most people think computers are magic

...it's true. I know so many people that thought the first wireless laptops could get tube happy in the middle of a baseball stadium....wanna know why? Cuz the other tube (tv) told 'em they could. I had tons of orders for "those laptops that can go on the Internet from anywhere"...and do you also wanna know how many of them I had to disappoint? All of 'em.

Joe Sixpack has no idea how computers work. He gets his ideas about how new stuff works from TV. Yep. It's true. Joe Sixpack is clueless to the lies. He simply cannot know how reality operates in all fields. If you are a techie and can't grasp the idea, you aren't worth the crumbly food-infested keyboard with which you type.

SO. If Apple demonstrates "how easy (and fast) it is" to surf said tubes on their phone, most people will believe it. It's not the consumer's fault. (well, actually, I believe it is. I spend the time to investigate and research every purchase I make...cars/car repairs, computers/electronics, furniture, travel/trips...and I'm skeptical...that helps, too. That's not to say that everyone else can, or should have to do the same...it just means that I don't suffer from "Awww man, I can't believe this doesn't work like on TV!?" like everyone else I know.)

Tangent: I find it even MORE pitiful when companies like LG and Samsung show "simulated" screens on THEIR TVs/monitors in commercials. How pathetic do their marketing guys have to be to overlay a super-crisp image on their shit, just to write "screen image simulated" in a 3pt illegible font at the bottom of a white screen in sliiiiightly off-white typeface?

Oh, and the bullshit shoveled into everyone's house from the cell phone companies about how ZOMG VIDEO works via cell phones...I didn't believe it...they showed "simulated" video that you could download and watch on your cell...in the commercials it was apparently hi-res full motion video.

AS IF! In reality 3 fps doesn't constitute video. That's a slide show, and the sound was terrible... OH, and the best part...it was edited "clips" of SELECTED news casts. Not anything near what any REASONABLE person would have expected from their ads.

Yeah, sign me up....how long did that last? However long it was, it was too long. And I hope whoever came up with that idea had to pay those companies back the money they lost on that.

Back to what some dude said above me --> If a company advertises something, and if it isn't close to reality, it should be CLEARLY disclaimed...otherwise, they deserve to get robbed of their profits, and prevented from continuing the misinformation/misrepresentation.

And by the way, to the other dude that has no idea why class-action lawsuits exist: They exist for the aforementioned reason....namely to prevent companies from profiting from perpetuating misinformation/misrepresentation. False/misleading advertising has to stop, but I doubt it ever will until everyone sues them into submission. Corporate America gets the picture when their bottom line is hit, and can't pay themselves multimillion dollar bonuses whenever they want.
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