Business ProfileforMDHearingAid

On 1/21/2021, 1/27/2021 and 2/04/2021 BBB emailed the business concerning their website, print and email advertising that are in violation of the BBB Code of Advertising. On 2/04/2021 BBB attempted calling the business and were unable to speak with any principals or management. The business responded to BBB emails on 1/21/21, 1/28/2021, and 2/4/2021, but at those times did not address the BBB Code of Advertising concerns contained in them. The following advertisements were challenged by BBB:

PRINT ADVERTISEMENT

Your recent print advertisement states:

“BUY 1 GET 1 FREE
REG. $599.99
Only $299.99
Each When You Buy A Pair – LIMITED TIME ONLY!”

BBB requested that the business modify this advertisement to comply with Sections 14.6 and 21 of the BBB Code of Advertising.

In addition, the print ad states:

“How can a rechargeable hearing aid that costs only $299.99 be every bit as good as one that sells for $2,400 or more?”
“The MDHearingAid VOLT uses the same kind of Advanced Digital RECHARGEABLE Hearing Aid Technology incorporated into hearing aids that cost thousands more at a small fraction of the price.”

“the MDHearingAid VOLT uses the same kind of Advanced Digital RECHARGEABLE Hearing Aid Technology incorporated into hearing aids that cost thousands more at a small fraction of the price.” 

“…works right out of the box with no time-consuming “adjustment” appointments” 

BBB requested that the business substantiate the above claims to comply with Section 34 of the BBB Code of Advertising.

WEBSITE

https://www.mdhearingaid.com/

“For a limited time, shop our best offer ever on FDA-registered hearing aids and save up to $600.” With “Shop The Sale” underneath.

BBB requested that the business substantiate that the offering is a valid price reduction and has not become their regular price per Section 9 of the BBB Code of Advertising. 

https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-volt-pair
https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-air-pair

The listings for a SINGLE HEARING AID states:

“BUY ONE GET ONE FREE” 

The offer for 1 hearing aid lacks a disclosure notifying consumers that they must buy the pair bundle to receive the free hearing aid.

The pair bundles stated:

“One-time payment      

                                              1199.99

                                                599.98”
And

“One-time payment     

                                              799.99

                                                399.98”

BBB requested that the business clearly disclose the basis for the previous, slashed price comparisons on their website, per Section 2 of the BBB Code of Advertising.

There were 2 financing offers contained on the business' website at 4 different locations:

https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-volt-pair

“$50.00/mo. based on a purchase price of $599.99”

and

“0% APR for 12 months.”

https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-air-pair

“$33.33/mo. based on a purchase price of $399.99”

and

“0% APR for 12 months.”

https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-pro-pair

“$16.67/mo. based on a purchase price of $199.99”

and

“0% APR for 12 months.”

https://www.mdhearingaid.com/en/product/mdhearingaid-hearing-aid-core-pair

“$66.67/mo. based on a purchase price of $799.99”

and

“0% APR for 12 months.”

Each offer contained a Truth in Lending Act triggering term, - The number of payments or period of repayment and - The amount of any repayment, expressed either as a percentage or as a dollar amount. BBB requested that MDHearingAid add Truth in Lending Act disclosures to comply with Section 16 of the BBB Code of Advertising.

EMAILS

4 recent emails sent from support@mdhearingaid.com advertise limited time savings and sales. They read:

12/20/2020:

“Can’t miss Christmas savings event starts right now.
Before the hubbub of the holidays with the family fully takes over your life, here’s your chance to take advantage of an amazing, limited-time holiday discount on the hearing you need now more than ever.”
“CLICK HERE TO SHOP THE SALE”
12/22/2020:
“Our limited-time Christmas savings event is live right now, and there’s never been a better time to invest in your hearing and invest in yourself.”
“CLICK HERE TO SHOP THE SALE”

1/26/2021:

“SALE ? ENDS ? TONIGHT

 Friend, there’s still time to make the most of every moment of 2021 with the hearing you need now more than ever—with an unbelievable BOGO deal! 
Don't wait any longer. These flash savings end at midnight—and you’ve worked too hard for too long to miss a single word. 

Hundreds of thousands of Americans have already experienced the MDHearing difference. Here's your chance to enjoy the latest hearing technology backed by an iron-clad guarantee at our best(ever) price.

Shop the final hours of the flash sale now.”

The above email was received 1/26/2021, and upon viewing MDHearingAid's website 1/27/2021, the sale was still active. The sale in fact did not end “tonight” or the night of 1/26/2021. From the sale period to the non-sale period prices remained unchanged.

2/8/2021

“SUPER BOGO SAVINGS – EXTENDED TODAY ONLY

SHOP THE SALE

EXTENDED (!!)

The big game might be over, but there’s still time to upgrade your hearing with the latest technology delivered directly to your door.

Our super savings spectacular has been extended for a few more hours, Friend. Don’t punt on improving your hearing until next season—take your every day to the next level with advanced background noise reduction, top-of-the-line feedback control, and improved sound clarity.

Offer only guaranteed through 2/8/21 at midnight.”

The above email was received 2/8/2021, and upon viewing MDHearingAid's website 2/9/2021, the sale was still active. The sale in fact did not end 2/8/2021. From the sale period to the non-sale period prices remained unchanged.

MDHearingAid's promotional emails continue to advertise their Buy One Get One sale offer as a limited time offer, with prices not reverting back to non-BOGO prices after the limited time period has expired.

MDHearingAid stated that their Buy One Get One free offer began 10/8/2021. This is in violation of Sections 9 and 14.2 of the BBB Code of advertising, as sales should only last for 30 days and "free" offers may be extended for a maximum of 6 months in a 12 month period. 

An Intent to Suspend email was sent to the business 2/11/2021, after which the business responded to the Code of Advertising concerns. After reviewing the business’s response, BBB found that it failed to substantiate the claims made in their advertising. Additionally, the business did not modify the advertising on their website. The business was notified we would move forward with suspension and their accreditation was suspended.

On 3/11/2021 MDHearingAid informed BBB that they modified their Affirm credit advertising to comply with Section 16.4 of the BBB Code of Advertising. This item was resolved. 

On 3/11/2021 MDHearingAid informed BBB that they modified their website pricing to include "List Price"  as the disclosure of the basis for their price reductions/slashed pricing. This resolved the Section 2.2 violations of the Code of Advertising, but as the price difference is advertised using "You Save", BBB requested substantiation that substantial sales of product have been made at the "List Price."

On 5/24/2021 MdHearingAid provided an update to the Buy One Get One offer in their print advertisement:

"“BUY 1 GET 1 FREE
REG. $599.99
Only $299.99
Each When You Buy A Pair"

This updated offer resolves the Section 14.6 and 21 issues with the advertisement, but the Buy One Get One Free offer remains in violation of Sections 14.2 and 9, as BBB has not received substantiation that higher, previous slashed price is the regular price for their hearing aid. BBB has not received substantiation that reduced price is a valid reduction and has not become their regular price.

BBB has had calls with the business to attempt to resolve the Code of Advertising concerns 3/3/2021, 5/25/2021, 6/2/2021 and 6/9/2021. 

On 6/3/2021 BBB requested the following information to resolve the BBB Code of Advertising concerns:

"Please provide a statement detailing?each hearing aid component MDHearingAid uses and who manufactures or supplies them. In this statement, please explain how the components used in your hearing aids are "every bit as good" as components contained in calibrated hearing aids.

As of 6/9/2021, BBB has not received the most recent requested substantiation, and the most recent requested modifications to MDHearingAid's advertising have not been made. MDHearingAid's advertisements remain in violation of Sections 2.3, 6, 9.1, 14.2, and 34. The case has been closed as unsubstantiated.

The BBB Code of Advertising states:

2. Comparative Price, Value and Savings Claims

BBB recognizes that truthful price information helps consumers make informed purchasing decisions and that comparative price advertising¹ plays an important role in promoting vigorous competition among retailers. At the same time, misleading or unsubstantiated pricing claims injure both consumers and competitors. The following examples offer guidance on ensuring that pricing claims are truthful and not misleading.

2.1 Advertisers may offer a price reduction or savings by comparing their selling price with:

2.1.1 Their own former selling price;

2.1.2 The current selling price of identical products or services sold by others in the trade area (the area in which the company does business or where the advertisement appears) (e.g., “selling elsewhere at $_______.”); or

2.1.3 The current selling price of a comparable product or service sold by the advertiser or by others in the trade area (e.g., “comparable value,” “compares with products or services selling at $_____,” “equal to products or services selling for $_____”).

2.2 In each case, the advertisement must clearly and conspicuously disclose which basis of comparison is being used.

2.3 When these comparisons are made in advertising, the claims must be based on the provisions in Sections 3 - 7.

6. List prices

6.1  “List price,” “manufacturer's list price,” “reference price,” “suggested retail price,” and similar terms, hereinafter collectively referred to as “list price,” may be used deceptively to state or imply a savings which was not, in fact, the case. To the extent that a list price does not in fact correspond to the price at which substantial sales of the product in question have been made, the advertisement of a reduction may mislead the consumer. Such a comparison must be substantiated by the advertiser prior to making any advertised comparison.

6.2 An advertiser, however, can also reference a list price non-deceptively where the advertiser:

6.2.1 Does not describe the difference as a “savings,” or use any other words of similar meaning; and

6.2.2 Clearly and conspicuously discloses² that the list price may not necessarily be the price at which the product or service is sold. This disclosure may be unnecessary in situations where consumers generally know that the list price may not necessarily be the price at which the product or service is sold. This may be the case, for example, when an automobile dealer references, in its ad, a new car’s Monroney Sticker price.

9. Sales

9.1 The unqualified term “sale” may be used in advertising only if there is a significant reduction from the advertiser's usual and customary price of the products or services offered and the sale is for a limited period of time. If the sale exceeds thirty (30) days, advertisers should be prepared to substantiate that the offering is indeed a valid price reduction and has not become their regular price.

14. “Free”

14.1 An advertiser may use the word “free” in advertising whenever the advertiser is offering an unconditional gift. If receipt of the “free” product or service is conditional on a purchase:

14.1.1 The advertiser must clearly and conspicuously disclose this condition with the “free” offer (not simply by placing an asterisk or symbol next to “free” and referring to the condition(s) in a footnote); and

14.1.2 The advertiser must not have increased the normal price of the product or service to be purchased nor reduced its quantity or quality.

14.2 The “free” offer should be temporary; otherwise, consumers may view it as a continuous combination offer, no part of which is free. Thus, where it would otherwise confuse consumers, a product or service must not be advertised with a “free” offer in a trade area for more than six (6) months in any 12 month period. At least thirty (30) days must elapse before another such offer is promoted in the same trade area.

14.3 In a negotiated sale, no “free” offer of a product or service should be made where it would likely mislead consumers, such as where:

14.3.1 The product or service to be purchased usually is sold at a price arrived through bargaining, rather than at a regular fixed price; or

14.3.2 There may be a regular price but other material factors such as quantity, quality or size are arrived at through bargaining.

14.4 Offers of “free” products or services which do not meet the provisions of this section may not be corrected by the substitution of such similar words such as “gift,” “given without charge,” “bonus,” “complimentary” or other words which can convey the impression to the consumer that a product or service is “free.”

14.5 Because the consumer continually searches for the best buy and regards the offer of “free” products or services to be a special bargain, all such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative language frequently used in such offers includes:

• “Free”
• “Buy 1-Get-1 Free”
• “2-for-1 Sale”
• “50% off with Purchase of Two”
• “$1 Sale”
• “1/2 Off”
• “Gift with Purchase”

Literally, of course, the advertiser is not offering anything “free” (for example, an unconditional gift), or 1/2 free or 2 for 1 when making such an offer, since the consumer is required to purchase a product or service in order to receive the “free” or “2 for 1” item.

14.6 Whenever such an offer is made advertisers must make clear at the outset all the terms and conditions of the offer.

16. Credit

16.4 Closed-end credit in the U.S.

16.4.1 Advertisers are advised to consult Section 226.24 (12 CFR 1026.24) of Regulation Z for details of closed-end credit advertising. Examples of closed-end credit include installment loans and many automobile loans.

16.4.2 If an advertisement of closed-end credit contains any of the following triggering terms, three specific disclosures must also be stated, clearly and conspicuously.

16.4.3 The triggering terms are:

• The amount or percentage of any down payment;
• The number of payments or period of repayment;
• The amount of any payment, expressed either as a percentage or as a dollar amount; or
• The amount of any finance charge.

16.4.4 The three disclosures are:

• The amount or percentage of the down payment;
• The terms of repayment; and
• The “annual percentage rate,” using that term spelled out in full or the abbreviation “APR.” If the rate may be increased after consummation of the credit transaction, that fact must be disclosed.
•  

21. Layout and Illustrations

21.1 The composition and layout of advertisements should be such as to minimize the possibility of misunderstanding by the reader.

21.1.1 For example, prices, illustrations or descriptions must not be so placed or displayed in an advertisement as to give the impression that the price or terms of featured products or services apply to other products or services in the advertisement, when such is not the case.

34. Claimed Results

Claims relating to performance, energy savings, safety, efficacy or results for a product or service should be based on recent and competent testing or other objective data.