Grumpy Editor

Air pass idea creates PR problem for American Airlines

An American Airlines marketing gimmick is turning into a major public relations problem for the carrier and its parent, AMR Corp., notes Grumpy Editor. 

The airline, starting in 1987 and through 2004, offered a lifetime AAirpass that, with a companion ticket, allowed unlimited travel at home and abroad for $350,000.  It attracted 66 people. 

Now, the carrier is focusing on ways to terminate the lifetime contracts. 

Steven Rothstein was one of the AA pass holders.  But the airline snatched his lifetime pass, saying it was due to fraudulent activity --- booking flights under fake names if he didn’t know who his companion would be for the trips. 

He filed a lawsuit but a federal judge ruled against him.  The case is being appealed. 

In the meantime, Rothstein has been making the media rounds, including an appearance Monday night on Fox News’ “On the Record” with Greta Van Susteren.  It followed an ABC News interview and a New York Post piece.  In far-off Australia, the Sydney Morning Herald last Thursday picked up a lengthy Los Angeles Times story on the revoked pass saga. 

Such negative news is not exactly what AMR, which filed for bankruptcy protection last November, seeks in the competitive air travel world. 

As Rothstein told ABC:  “AA signed a contract, and a contract’s a contract.”

 

FCC toughens annoying ‘robocalls’ from telemarketers

Telemarketers, even those linked to consumers via an “established business relationship” such as banks or auto dealerships, now will have to obtain your written consent before placing those pesky “robocalls” which always seem to occur at inopportune times, finds Grumpy Editor.

New rules from the Federal Communications Commission make it more difficult for automatic dialers with prerecorded messages to reach consumers.

Also, to simplify things, the FCC will require firms behind “robocalls” to allow those on the receiving end to opt-out of future calls within the first two seconds via pressing keys on phones.

Despite the fresh clampdown, some marketing folks and others still will find ways to interrupt peaceful evenings.

These include pollsters, schools, churches and non-profit operations.

And, not surprisingly, loopholes also allow another group to reach you:  politicians.

The key method to block unwanted calls is to go to DoNotCall.gov and add your name to the National Do Not Call Registry.

No need to re-sign every five years, as some media sources suggest.

Registered telephone numbers will remain permanently, stemming from the Do Not Call Improvement Act of 2007 that became law in February, 2008.

 

Spirit Airlines adds to long list of fees for passengers

Spirit Airlines’ Web site spotlights a new service between Atlanta and Atlantic City with a fare from $28.79 each way based on round trip purchase, but passengers these days --- as with flying on other carriers ---  have to factor in other fees and charges, observes Grumpy Editor. 

Spirit this week is in the forefront with a new charge it labels “Department of Transportation unintended consequences fee.”  (Say that fast a few times.) 

That DOT fee tacks on $2 each way to the Spirit ticket price. 

The airline with “ultra low fares” blames that on a new DOT regulation that allows passengers to change flights within 24 hours of booking without paying a penalty. 

The added fee joins a long list of “optional” charges beyond ticket price. 

Among them: 

Carry-on bag fee, $30 at booking or $35 at check-in.

Customer-requested seat assignments, $1 to $50 per seat.

Unaccompanied minors fee, $100 each way.

Pet transport fee, $100 per container each way.

Onboard snacks, $1 to $10.

  

See the full list here.

 

Good Housekeeping needs some marketing housekeeping

With national magazines keenly eager to keep readers subscribing these days, confusion grows not only in prices, but in all sorts of wild “deals” and marketing tactics, finds Grumpy Editor. 

A good example this week is with Good Housekeeping. 

The Hearst magazine (a unit of Hearst Corp.) sends two subscription pitches, with variations, arriving at the same household on the same day. 

Pitch No. 1, labeled “rate adjustment” and “this is a non-transferable discount offer,” indicates the magazine with an annual cover price of $41.88 can be had for $7.97 --- and a Good Housekeeping tote bag will be tossed in with the offer that expires Feb. 15. 

Pitch No. 2, labeled “preferred subscriber claim form” for Good Housekeeping, also includes a one-year subscription to Redbook, another Hearst publication, at a combined price of $8. 

That form notes “combined annual cover price” of $77.76.  The $8 comes after a “credit adjustment” of $69.76.  The offer, good until Feb. 13, also cautions, “This credit is not transferable.” 

But wait. 

While the two-magazines-for-one-small-price in pitch No. 2 shows the other magazine as Redbook on the mail-in slip, the bottom part indicates the other Hearst publication in the deal is Woman’s Day, complete with reproduction of a cover photo and one paragraph description of that magazine’s highlights. 

A plus, however:  Unlike some other publishers’ pitches these days, a prepaid envelope accompanies each. 

Among Hearst’s other magazines are Cosmopolitan, Esquire, Popular Mechanics and Harper’s Bazaar.

 

Better Homes and Gardens renewal messages scold

 

Magazine renewal notices usually are rather cordial, often with an inducement --- such as a token gift --- to spur prompt action from subscribers, but mailed messages from Better Homes and Gardens border on something that would originate from the IRS or a collection agency, finds Grumpy Editor.

Scolding and threatening valued readers are sure ways to deter renewals.

Think subscribers would “re-up” to the magazine, a Meredith Corp. publication, that first mails an “urgent notice” from the “collections department” that reads:

“As you know, we have been very patient, but your bill is now seriously delinquent. 

“We fully expect you to resolve this situation as honorably as you began it…please pay your debt now.” 

(The “account balance” on the form shows $12.97.  The bill is not delinquent and there is no “debt” since no renewal is happening.) 

Then a month later, a follow-up mailed greeting arrives in a yellow envelope labeled “TELEWIRE, electronic message”: 

Inside, a yellow sheet from “accounts receivable,” all in capital letters, reads: 

“ALTHOUGH WE HAVE REPEATEDLY ADVISED YOU OF YOUR DELINQUENT ACCOUNT, WE HAVE NOT YET RECEIVED PAYMENT IN THE AMOUNT OF $12.00 FOR THE BETTER HOMES & GARDENS MAGAZINES YOU ORDERED.”  

(Note: The renewal is not ordered and the pitch incorrectly uses an ampersand in the magazine’s title, rather than and.)

“IN ORDER TO PREVENT ADDITIONAL MEASURES, WE URGE YOU TO REMIT YOUR PAYMENT AT ONCE. 

“YOUR IMMEDIATE RESPONSE WILL BE AN IMPORTANT FACTOR IN DETERMINING OUR COURSE OF ACTION. 

“DO NOT DELAY.  REMIT YOUR PAYMENT TODAY.” 

(Note: On the follow-up pitch, the “Status: past due amount due: $12.00”--- that’s with two “dues” in the pitch --- shows 97 cents less than in the month-earlier scolding.) 

Also, unlike other magazines that provide postage-paid envelopes for renewal payments, envelopes from both Better Homes and Gardens pitches require readers to affix stamps. 

Bottom line:  Would a normal subscriber renew after those tongue-lashings? 

By the way, going “cold” to Meredith’s Web site to order a similar 12 issues of Better Homes and Gardens costs half the “overdue payment”:  $5.99.  And with that comes a free “All-Time Favorites Cookbook.”

 

Watchdog group seeks ouster of McDonald’s mascot

Retire Ronald McDonald?  That’s almost like telling Santa Claus to hang up his cap.  Yet, a nonprofit watchdog group --- that plans to stir things up at today's McDonald's Corp. annual shareholder meeting --- is asking the golden arches chain to do just that with its long-time mascot, notes Grumpy Editor. 

Along with seeking (as it has for months) Ronald McDonald to spend the future in a rocking chair, Corporate Accountability International also would like to see the mammoth fast-food operation halt marketing junk food to children. 

Corporate Accountability International is aiming for Ronald McDonald’s retirement because it claims McDonald’s uses clowns and toys to sell unhealthy food to impressionable children --- overlooking the fact that parents are the ones who pay for the meals. 

The watchdog group likes to jolt some corporations.  In the past it has targeted beverage firms such as Coca-Cola Co. and PepsiCo., Inc., and tobacco companies. 

At today’s McDonald’s annual shareholder meeting in Oak Brook, Ill., the group is slated to present a petition signed by 20,000 parents and community members, calling on the hamburger giant to stop marketing to kids.  Looking for a photo op, plans call for the petition to be delivered in a giant medicine bottle. 

Ronald McDonald, with an orange and white face and garbed in a clown outfit with floppy shoes, is marking the 48^th year as the fast-food chain’s mascot. 

Some people work full-time making appearances in the Ronald McDonald costume, visiting children in hospitals.  There are also Ronald McDonald Houses where parents can stay overnight when visiting sick children in chronic care facilities.   

In addition, Ronald McDonald House Charities, an independent organization in 52 countries and regions, creates, finds and supports programs designed to improve health and well being of children. 

"We are committed to responsible advertising and take our communications to children very seriously," responds McDonald's.

"We understand the importance of children's health and nutrition, and are committed to being part of the dialogue and solution. We serve high quality food, and our Happy Meals offer choice and variety in portions just for kids. Parents tell us they appreciate our Happy Meal choices." 

McDonald's is the world's leading global food service retailer with more than 32,000 locations in 117 countries. About 80 percent of its restaurants worldwide are operated by independent owners.

 

Fewer fingers on Yellow Pages loom in San Francisco

Future deliveries of printed Yellow Pages look glum in San Francisco as the Board of Supervisors takes a final vote this week calling for restricting directory deliveries only to residences and businesses that request them, notes Grumpy Editor.

The Yellow Pages put a blight on the community and banning the book of names, numbers and addresses will protect the environment, claims the board. 

The likely ban on unsolicited distribution of Yellow Pages is the latest in a series of “green” measures in the City by the Bay.

An estimated 1.6 million Yellow Pages directories are distributed annually in San Francisco. 

A ban would make San Francisco the nation’s first city to thwart Yellow Pages distribution. 

Backers say the Internet makes the directories unnecessary. 

"If we're serious about the environment, it's time we recognize that phone books are a 20th century tool that doesn't meet the business or environmental needs of the 21st century," Supervisor David Chiu pointed out when his directory-banning idea surfaced three months ago.

 

Anti-smoke item pitch follows smoky ‘Rango’ ABC report

A top-of-the-hour ABC News radio report that much smoking, frowned on for young children, appears in Rango --- a PG-rated animated feature film that topped the weekend box office with $38.1 million gross --- was immediately followed yesterday morning by a commercial for an anti-smoking product, notes Grumpy Editor.

Coincidence?

Only ABC's ad sales and newsroom know for sure.

Meanwhile, the smoke hasn’t settled in comments from the anti-smoking folks.

Rango, a chameleon, is the star surrounded by multiple characters that puff away on cigars and cigarettes in the Paramount movie aimed at young audiences.

Anti-smoking advocates fear children and youth will be inspired to start the habit after viewing the smoky animated footage.

One anti-smoking supporter claims the frequency of smoking in the film is on par with Cruella’s puffing --- via a long cigarette holder --- in a vintage animated film, Disney’s 101 Dalmatians.

Rango, star of the latest hit, captures attention by swallowing a cigar and breathing fire in a villain’s face.

"While the incidence of smoking in the movies has declined in recent years, the presence of smoking in a youth-oriented cartoon like Rango underscores the need for Hollywood to take stronger, mandatory action to protect our children,” declares Matthew L. Myers, president of the Campaign for Tobacco-Free Kids.

“It's time for the Motion Picture Association of America to require an R-rating for movies that depict smoking," he adds.

 

Latest trend? Dual magazine covers for same issue

At a time when magazines are seeking to contain production costs, what’s going on with two major magazines producing dual covers with separate photos that popped up this month, wonders Grumpy Editor.

Bloomberg Businessweek (the capital W has been retired), in its Feb. 14 issue, came up with two cover versions touting “The Infidelity Economy” which gave much space to a Web site operation that focused on the hot topic of linking married men to married women.

The western version showed a man’s (non-hairy) legs with pants dropped down to his ankles.  The eastern cover captured V-shaped female legs, topped by high heels, pointed upward.

One response was: “This is not your father’s biz magazine.”

Meanwhile, distributed this week, was Woman’s Day --- dated April 1 --- also with dual covers.

Some subscribers received a Woman’s Day cover showing a pasta dish (technically, creamy pasta with leeks, peas and Parmesan) while the other displayed two shelves on a wall that included “cheerful” assorted knick knacks.

Readers were invited to vote --- via the Web --- on the Woman’s Day cover they prefer, spurred on by, “Don’t be afraid to judge our book by its cover: what’s inside is exactly the same!”

Early voting leaned toward the shelves.

 

Proposed S.F. ‘green’ law pulls fingers off Yellow Pages

In the future, there will not be many fingers walking over the Yellow Pages in San Francisco if the Board of Supervisors has its way, notes Grumpy Editor.

A proposed ban on unsolicited distribution of Yellow Pages is the latest in a series of “green” measures in the City by the Bay.

A ban would mark San Francisco as the first city in the nation to fully thwart Yellow Page distribution.

Behind the move is David Chiu, Board of Supervisors president, who feels Yellow Pages are becoming obsolete in the Internet age and often end up unopened or in the trash, reports Rachel Gordon in the San Francisco Chronicle.

Chiu’s proposed law would require telephone companies plus other distributors and publishers to obtain advance permission before delivering an estimated 1.5 million Yellow Pages annually in San Francisco.

"If we're serious about the environment, it's time we recognize that phone books are a 20th century tool that doesn't meet the business or environmental needs of the 21st century," Chiu tells the Chronicle.

The proposed law "would be an infringement of our constitutional rights, the right to distribute speech" and would unfairly target one industry, declares Amy Healy, vice president of public policy and sustainability at the Yellow Pages Association, founded in 1975.

The San Francisco proposal follows a Seattle ordinance (now the basis of a law suit) that prohibits Yellow Pages distribution to those on a city-enforced opt-out list. In efforts to recover recycling costs, the ordinance also places a fee on phone books distributed in the city.