Eastman Kodak to update ad slogan after FTC probe
APNews
Dec 17, 2009
Eastman Kodak Co. said Thursday that the Federal Trade Commission will allow the company to continue to advertise the ink cost savings associated with its All-in-One inkjet printers, but has recommended Kodak include additional information to clarify the amount of those savings.
Kodak's slogan had claimed consumers can save $110 a year on ink costs by using Kodak's All-in-One inkjet printers. The company has now agreed to add that the $110 in savings depends on a consumer limiting their printing to 1,500 pages a year, or four per day.
From now on, Kodak said it would advertise that consumers can, "Save on average $110 per year on ink based on just four pages per day."
The FTC has closed its investigation, Kodak said in a statement. The FTC got involved after Kodak competitor Hewlett-Packard Co. complained to the National Advertising Division trade group about the company's ads.
Rochester, N.Y.-based Kodak launched the first of its line of all-in-one printers in 2007 as part of its shift away from traditional photography products. Its printers were priced at a premium to those of rivals, but Kodak aimed to capture consumers' interest by selling ink at a much lower price.
Shares of Kodak fell 9 cents, or 2.2 percent, to close at $3.98.