1. Scope

During 1996, a national claims survey for computer software was completed. Various levels of trade, including distributors, importers, major software retailers/chains and independent retailers, were visited.

After these initial visits, 140 software titles representing 93 different software companies were selected for evaluation. Computer Software was divided into five major categories:

• Household products (Do-it-yourself guides, budget planners, graphics packages, writing and printing packages, etc.);
• Educational software (interactive learning tools, educational games, etc.);
• Business / Office products (suite products, accounting packages, graphics programs, forms programs, project estimation products, etc.);
• Information products ( encyclopaedia, dictionaries, etc.);
• Games (soccer, football, simulations, etc.)

Of these titles, 21% were from software companies of domestic origin while 79% were from countries other than Canada.

Table 1 illustrates the country of origin for the selected products.

2. Claims Evaluation

Claims on software are evaluated against Section 7 of the Consumer Packaging and Labelling Act, which prohibits false and misleading claims.

False and misleading

Section 7(2)(c) of the Act further defines the meaning of false or misleading claims. They include, but are not limited to:

"Any description or illustration of the type, quality, performance, function, origin or method of manufacture or production of a prepackaged product that may reasonably be regarded as likely to deceive a consumer with respect to the matter so described or illustrated."

Types of Claims

Claims were broken down into four basic types:

• system requirement claims;
• features claims
  • numerical claims
  • other features claims
• pictorial representations; and
• any free or bonus offers.

Over 2000 claims were evaluated during this survey. Overall, some 163 or 8.1% of all claims evaluated were potentially false or misleading. While this may appear to be a small percentage based on the number of claims evaluated, these incorrect claims represent 65% of all the software titles tested.

As can be seen in Table 2, the games and information product software categories were found to have the most claims problems.

a. System Requirements Claims

Most software offered for sale makes a statement regarding the minimum system requirements needed to run the program. Results show that claims of this type were the highest source of problems. As can be seen from Table 3, system requirements claims represented 51% of all problems found in this survey.

Table 4 shows how system requirement problems were spread throughout the various product categories. By far, games were the single largest source of system requirement problems.

System requirements problems were found in many forms as illustrated below.

Understated CPU requirements

This particular problem was most evident in the games products. In many cases, certain aspects of games would not work or were so slow as to make the game almost unplayable when using the minimum recommended CPU.

Examples:

- In one instance, the package for a game stated that the minimum system needed was a 486-DX33. The program came with three installation options: minimum, medium and maximum. The program stated that the "medium and maximum options are for Pentium users only." There was no mention of this on the package or in the manual.

- In another case, the package for a game stated that a "486" was needed. The installation and read me file both said that a 486-66 was required. When this game was tested with a 486-DX33, the minimum requirements on the box, the game ran very slowly and froze up regularly. Also, once full screen mode was selected, the program would not allow you to switch back. The game ran well when a Pentium processor was used.

Compatibility Problems on Different Platforms

This is a common problem. For example, programs often claim they are designed for Windows 3.1x but will also work with Windows 95 or NT. Results indicate there were problems from as significant as a program not being able to install to certain features not being available under these other platforms.

Examples:

- In one instance, a French dictionary product claimed to work under Windows 3.1 and 95. However, the program could not be installed under a Windows 3.1 platform.

- In another case, a mathematical program stated that it was compatible with "Windows and Macintosh CD-ROM". Test results showed the program would not work in French on the Macintosh system.

Understated Hard Drive Requirements

This was one of the most common problems under the systems requirements claims. There were a number of programs that required anywhere from 5% to 50% more hard disk space than was claimed on the package.

Examples:

- In one case a medical encyclopaedia product stated that it required "10MB free hard disk space for installation." The program required 22 megabytes. This did not include the installation of the video player programs needed to view video clips on the CD.

- Another problem is that in some cases, the hard drive requirements stated on the package and those in the manual differ significantly. In one case, the package for a game stated that the game required "8 MB RAM and 32 MB hard disk space or 16 MB RAM and 15 MB hard disk space." The manual stated "although the installed files will take 16 MB, 40 MB or 140 MB, you still need 16 MB additional free hard disk space." With 16 MB RAM, the game would not run with less than 32 MB free hard disk space.

RAM Requirements

The amount of memory required by a program in many cases was understated. This was especially true of games and other programs that use a significant amount of graphics. There were instances, especially in games, where certain features would not work when a minimum RAM setup was used.

Examples:

- One household product evaluated had a 4 megabyte RAM requirement. The program could not be installed with four megabytes of memory. The setup program stated there was insufficient virtual memory and directed that the Windows swap file be increased in size. The setup program stated that the file be set to 8,192 kilobytes, a file larger than recommended by Windows.

- In one game, a virtual reality tour would not work, even after following the trouble shooting guide, when using the minimum required RAM of 12 megabytes. However, the tour would work with 16 megabytes.

Video / Sound Requirements

Most of the problems for video/sound requirements were found in the games category. In most cases where problems were found, the video requirements were understated. In some cases, the sound was also distorted during video clips when a minimum system set up was used. These distortion and choppy video problems tended to come in combination with other system requirement problems such as a computer which had a slow processor or did not have enough memory.

Examples:

- On one game, the package stated that the game could be played with "screen resolutions up to 1600 x 1200 and up to 16.7 million colours." The manual indicated that 4 megabytes of video RAM were required to get this resolution. The claim did not state the conditions under which these resolutions could be achieved.

- In another case, the package for a game said "Video requirements SVGA". The read me file stated that an "SVGA with 1MB memory" was required. Also, for full screen mode, a direct draw compatible video card was required. The game would not run without a proper video card. It was not stated on the package that some video cards were not compatible with direct draw.

b. Features Claims

Next to system requirements, features claims were the highest source of claims problems. The features claims were broken out into two groups:

• numerical type claims
• other features claims

Numerical Claims

These claims deal with the number of features which are part of a program (for example, the number of clip arts). As can be seen from Table 5, these claims represented a little over half of all features claims problems. The problems were found primarily in information products which are marketed by the number of pictures, maps, etc they provide. The other software categories, with the exception of games, also had some numerical claim problems but it was not nearly as prevalent as the information products area.

Numerical claims infractions ranged from very significant to relatively minor. Examples of problems found include:

Examples:

- A Business/Office product which claimed to have "10,000 clip art images with a full colour manual" was found to have only 2610 images (73% less than claimed) and no reference manual;

- A product which claimed to have "over 3500 complete unabridged literary works" was found to have only 1776 (49% less than claimed);

- An encyclopaedia product claimed to have "over 1200 maps" was found to have only 830 (30% less than claimed);

- A desktop publishing product which claimed to have "100 built in templates" when only 38 were supplied (62% less than claimed); and

- A multimedia product claimed that it had "14,000 multimedia images (photographs and illustrations)" when 12,146 were found (13% less than claimed). The same package also claimed "1,800 sound clips" when only 1,238 were found (31% less than claimed).

Another concern which arose during testing was the use of terms like dozens, hundreds, and thousands when there were less than two (dozen, hundred, thousand). For example:

Examples:

- A home use architectural software product claimed there were "hundreds of symbols for furniture, fixtures and appliances" (meaning more than 200), when only 190 were found;

- A desktop publishing product which claimed to have "Thousands of ready to print projects" had only 1,500 projects available.

A third general problem found with numerical claims was the use of the term "more than" when there were exactly that number of items in the program. For example:

- A suite product made a claim "choose from over 84 chart types" for its spreadsheet product. However, there were exactly 84 chart types available.

Other Features Claims

These claims deal with what the package states the product can do. Although there tended to be more problems in the information products area, features claims problems of various types were found in all product areas.

Examples of problems found include:

Examples:

- A French language encyclopaedia program claimed that any word processor could be used, from a Windows 3.1, Windows 95 or NT platform, to call up the program. When Word for Windows 95 was used, the system crashed due to a programming error;

- A similar problem occurred with an European French language program. It claimed that the program could link directly with Word for Windows 95. However, when this was attempted an error message was generated and the program could not be installed;

- A recipe program which claimed to run on PC's and Macintosh systems had a feature called a "Refrigerator function" in which the type and amount of leftovers could be entered. The program then searched through its database and made menu suggestions. However, this feature would only work on a Macintosh system, not a PC.

- A clip art program claimed to have "detailed images in full colour". In fact, many of the images were not in full colour and appeared to be old black and white graphics that had been partially coloured. For example, in one graphic a horse's tongue was coloured pink and in another a cat's eyes were coloured green;

- In a number of cases there were references to toll free numbers on the package. In two cases, although there was a reference to a toll free support line, there was no toll free number on or in the package. In other cases, toll free numbers were not valid in Canada;

- One business / office product claimed "insert your own logo or graphic" when customizing forms. However, unless the logo or graphic was in ICO or BMP format, which was not stated on the package, it could not be imported;

- For a game product, the package stated that the game could be run from a CD-ROM. However, when the game was run, the entire game down loaded to the hard drive. This could be a serious problem for people who bought this game based on free hard drive space concerns with their systems;

- A number of games made the claim that they supported modem and network play. These claims were found to be a problem because once the package was opened, the manual stated that each player should also have a copy of the game to support these modes of play;

- A package of shareware children's games made the claim "No system crashes from bad programs"! Although system crashes were rare, they still happened four times during the evaluation; and

- A business / office product claimed that it had "Fully bilingual software". Although the program would print out customer statements, invoices, etc. in English or French, the language of use for the program was English only.

These examples have shown a sampling of the wide variety of features claims which could adversely affect a program.

c. Pictorial Representations

In these type of claims, it must be determined if the pictures and resolution on the package can be reproduced by the program. These problems were restricted to the games category. In many cases, the resolution shown on the package could not be achieved when using the minimum system requirements. In two cases, the resolution could not be achieved at all.

Example:

- For example, one game showed an animated screen shot on the back of the package. Minimum system requirements were for a 486-DX2/66. However, the trouble shooting guide on the CD indicated that in order to run in 600x400 mode, a 60 MHZ or better Pentium was needed. The package made no mention of needing a Pentium to run in a high resolution mode.

d. Bonus and Free Offer Claims

Although these type of claims do not affect the running of the program, they can be an influencing factor in the purchasing decision for the consumer. These claims are also widespread. As can be seen from Table 3, they represented 8.6% of all reported problems.

These problems were generally found in all product categories except for games. The claims ranged from cash rebates, to bonus software and free upgrade offers. Some examples of problem claims are found below.

Examples:

- Expiry dates for offers not being stated on the outside of the package seems to be a common problem. A software package offered a "$10 mail in rebate - offer expires January 1, 1997". On the inside of the package, it stated that the software must have been purchased after December 15th. In another case, the software stated "Includes Netscape Navigator (with one month Internet access for $1)". However, the Internet access offer had expired four months prior to the purchase of the package.;

- Another product had a photo offer that would "Personalize your project for only $0.55 an image, Photo CD offer inside package". No such offer was found inside the package;

- Many software packages offer Internet access as an incentive. In one case, the package claimed "Free, 30 days Internet access. Free, the tools to get on line now!" However, the Internet software was not included in the package. The user had to contact the Internet provider in order to receive the connection kit. This kit had still not arrived two months later;

- There are also offers of upgrades for free or at reduced prices. In one case the offer stated "Buy now and get the next upgrade free! Send $5.95US for shipping and handling". The actual charge turned out to be $12.00US; and

- A photographic CD software package offered "Free digital images from Kodak picture disk (Details inside)". Once the package was opened, the offer was only available with the purchase of a film processing or reprint order at a cost of $16.45US.

3. Labelling Issues

Software packages were also evaluated to see if they met the mandatory labelling requirements of the Consumer Packaging and Labelling Act. For software products, the mandatory labelling requirements include:

Product Identity

· A Product Identity - This is a statement in terms of the product's common name or function. For software, this is deemed to be the title of the product. The Product Identity is also required to be in English and French. However, for software, the Product Identity is required only in the language of use for the product. In other words, if the program requires a knowledge of the English language in order to use it, then the Product Identity need only be in English;

Dealer Identification

· The Dealer's name and principal place of business - The declaration must state the identity and principal place of business of the person by or for whom the product was manufactured for resale. This has been interpreted to mean a name and address sufficient for postal delivery. If the product is imported, then the dealer identification requirement can be met by:

• The name and address of the dealer outside Canada; or
• The name and address of the Canadian dealer with a statement of geographic origin immediately adjacent to it; or
• The name and address of the Canadian dealer preceded by the words "imported by/importé par" or "imported for/ importé pour".

As can be seen from Table 6, the biggest single problem with regards to mandatory labelling requirements was the dealer identity declaration. In almost all cases, the principal place of business was not included as part of the dealer identification. Although some companies had included a telephone number or Internet address for contact near their company name, this does not meet the requirements of a principal place of business.

It is also interesting to note that the incidence of this infraction is proportionately split between Canadian and imported software companies.

With regards to the Product Identity infraction, this particular product required the use of both English and French to use. As a result, it was required to have a common or generic name in both English and French.

4. Other Issues

This section is included to identify issues which, although they are not infractions under the Consumer Packaging and Labelling Act, should be considered as they could be misleading to the consumer.

Size of Packaging

There is a concern about the amount of packaging that is being used to market a product. During the evaluations, it was taken into consideration whether the size of the packaging was too large for what the consumer was receiving. The size of 53 packages out of the 140 evaluated (38%) could lead consumers to think that they were getting more than the software they were buying.

Example:

- For example, the package of a Business / Office product, which contained a cardboard liner, a CD-ROM with a case and a registration card, measured 16½ cm wide by 24 cm high by 7 cm thick (6½" x 9½" x 2¾").

No system requirements

The lack of system requirements statements on the outside of the package is a major concern for some type of programs, especially if they need large amounts of hard drive, memory or need a Pentium processor to run the program.

- In one case, no system requirements were given on the package. However, the manual stated that the minimum system requirement was a Pentium computer with 16 megabytes of RAM and a quad speed CD-ROM.

Examples:

- In another case, there was no indication of how much free hard disk space was required. When the program was installed, the minimum installation was 80 megabytes and a full installation was 300 megabytes. This can be quite a strain on systems, in many cases less than two years old, which may have less than 500 megabyte hard drive.

Hard to find qualified claims

This is a problem on many products, not just software. However, in software, there is so much information on a package, it is sometimes very difficult to find the qualification for the claim.

Example:

- For example, in the case of a Business / Office product that was evaluated, the front of the package stated that the product was "For Windows 3.1x" and the remaining portion of the statement "Runs on Windows 95 and Windows NT" was asterisked. The asterisk was eventually found on the back of the package near the bottom in a 1/32" type height: "Some application features may not be accessible under Windows 95 or Windows NT." However the package does not state what features are not available.