Posts Tagged ‘consumer protection law’

New Law Makes Florists Happy, But Has Wider Implications For Yellow Pages & Search Engine Ads

Tuesday, May 18th, 2010

A story in the Rochester, Minnesota Post-Bulletin describes a new state law that florists apparently campaigned-for which bans non-local companies from advertising local business services (in “New law removes thorn from side of local florists“). The story reports that this new law prohibits “deceptive” advertising by companies that misrepresent their location by using a false address and “local” phone number, and it would bar “any business from advertising on the Internet or in the Yellow Pages unless they also list a physical address.”

Florists in the Yellow Pages

I’ve heard florists complain about the wire services companies for many years over this very same issue. Companies such as FTD, Teleflora, Proflowers and 1-800-Flowers have long provided florists with broker services — they market themselves through many channels, both local and nationwide.

My family actually used to own a wholesale floristry service in West Texas, so I have some degree of direct understanding of how these florists feel. Many yellow pages companies, both online and print, have allowed these large, influential florist services to advertise with seemingly-local area listings. Consumers grabbing a yellow pages book or searching online for floral shops rarely can discern between the independent local florists and the ads of the brokers. Once the consumer orders flowers from the broker, they end up paying various service charges — the broker subtracts their cut and sends the order on to a local flower shop to fulfill, based upon standardized catalogs of products. Florists have long gnashed their teeth that consumers pay extra for less product, needlessly passing on money to these referral services.

I’ll confess: I’ve been a floristry industry insider, and I’ve ordered flowers both ways. I can tell the difference between good-quality flowers and bad ones, too.

You might think I’d side with the independent florists on this issue, but I don’t think it’s that cut-and-dried. (more…)