Published on : Thursday, December 19, 2013
Mike O’Donnell is one of the Small Business Development Centre’s (SBDC) small business advisers. For the last 18 years he has provided clients with invaluable advice on importing, exporting and general business issues, but if he could give just one piece of advice it would be this:
Several of the business disputes handled recently by the SBDC relate to advertising contracts signed by businesses. Salespeople from several advertising firms have approached WA businesses and offered to prepare display advertisements for them. The salesperson indicates they will arrange display of the advertisements on television screens in sites deemed suitable by the advertising firm. They then ask the business to sign a contract that is usually very one sided, often for a two-year initial term, and contains a rollover clause requiring at least 12 months notice of termination.
The contract usually doesn’t even allow for cancellation or a refund of fees if the advertisements aren’t displayed.
Two lessons gleaned from these unhappy experiences are:
• Always carefully read all contracts and only sign them if you’ve read, understood and agreed with all of the conditions.
• Research the advertising firm on the internet before signing – you might find warnings from other businesses caught by the contracts.
Tags: exporting and general business issues, importing, Mike O’Donnell, Small Business Development Centre's (SBDC), WA businesses
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