false advertising

Sharifah Diyana Meera NazreenSoh You Shing Surayyn Selvan

FALSE ADVERTISINGIntroduction to Business [BUSF0103]

Advertising?

• INFORMATION ADDRESSED TO THE PUBLIC

• CONVINCE THE AUDIENCE TO BUY THEIR PRODUCTS

WAYS to advertise

• NEWS PAPERS | MAGAZINES

WAYS to advertise

• RADIO | TELEVISION | INTERNET

WAYS to advertise

• BILLBOARDS

FALSE advertising?

• FAKE / UNTRUE information advertised

• The consumers buy the products or visit the store

• ILLEGAL and UNETHICAL

HOW do they do it?• VAGUENESSUse weasel words to evade direct statements easily [ words like “HELP” or “up to” ]

HOW do they do it?• VAGUENESSCONTINENTAL baking company was charged by the federal trade commission for ambiguous advertising

HOW do they do it?

• CONCEALED FACTSAdvertisers hide unflattering information about their products in advertisements

HOW do they do it?

• CONCEALED FACTSKRAFT advertised its Philadelphia cream cheese saying it was ½ the calories of butter

HOW do they do it?

• CONCEALED FACTSCaverject was an alternative to viagra and aided in male impotency

HOW do they do it?

• Exaggeration Advertisers make claims without concrete evidence

“usually occurs in the food industry”

HOW do they do it?

• Exaggeration Nabisco advertised its 100% bran cereal as fully flavored with 2 naturally sweet fruit juices

HOW do they do it?• Exaggeration GENeral Electric advertised its 90 watt energy choice light bulb saying that it was a replacement for a normal 100 watt one

HOW do they do it?• BAIT AND switch Advertise products that are unavailable then the owners convince the customers to buy something else

HOW do they do it?• BAIT AND switchA car sales showroom puts a basic car outside with a very low price tag and Once the customer is interested the sales person trades them up to a more expensive model

WHY do they do it?• Convince the customers to buy their products

• Get rid of defective products without any hassle

• Take advantage OF the customers lack of knowledge and trust

The SOLUTION?

FTC

The SOLUTION?• Federal trade commission

Prevents business activities that are unfair ; find out ads that are deceptive ; regulates unfair methods of competition

The SOLUTION?

• LAWs PURE FOOD AND DRUG ACT (1906) –

DO NOT MAKE, SELL OR TRANSPORT fake foods and drugs

The SOLUTION?• LAWs FEDERAl trade commission act (1914) – allows the commission to investigate and take down businesses with unfair methods of competition

The SOLUTION?

• LAWs LANHAM ACT (1947) – protects business trademarks and doesn’t allow false advertising

THE END

REFERENCES ( Books )• Wells, W. , Burnett, J. & Moriarty, S. (1998).

Advertising: Principles & practice (4th ed.). New Jersey: Prentice-Hall Inc.

• Velasques, M. G. (2006). Business ethics: Concepts and cases (6th ed.). New Jersey: Pearson Education

Ltd• Shaw, W. H. & Barry, V. (2004). Moral issues in

business. California: Wadsworth/Thomson Learning• Grace, D. & Cohen, S. (1999). Business ethics:

Australian problems and cases (2nd ed.). Melbourne, Australia: Oxford University Press

REFERENCES ( Websites )• Advertising media. (n.d). Retrieved from

www.english-online.at/

• County of Los Angeles Department of Consumer Affairs. (2011). False advertising. Retrieved from

dca.lacounty.gov/tsfalseadvertising.htm

• Bait-and-switch. (n.d) Retrieved from http://changingminds.org/