False advertising
From Free net encyclopedia
Current revision
False advertising is an act of deliberately misleading a potential client about a product, service or a company in general by reporting false or misrepresenting information or data in advertising or other promotional materials. False advertising is a type of fraud.
False advertising is often a crime. In some countries advertising practices (including "truth in advertising") are regulated by a government authority (FTC in the USA), in others the advertising industry is self-regulated and professional associations combat false advertising.
To decrease their legal liability for false advertising, many companies cover their tracks using small print.
Contents |
Some different methods used in false advertising
Going out of business/bankruptcy sales
By utilizing advertisement with titles such as "Going out of business", "Closing store", "Liquidation sale" or "Bankruptcy sale" a message of urgency and "dumped" prices is conveyed - where in reality the business has no plans on closing its store or going out of business. Some cities in the U.S now requires permits for these types of advertisements to combat the false advertising.
False price comparison
By comparing a sale price to a regular price for the same product, advertisers can inflate the "regular" price in order to create the impression that the sale price is very low. The intent is to mislead consumers into thinking that they are saving money by purchasing the "on-sale" item or service. Some clothing stores in particular have essentially every item on sale, and some grocery stores advertise "huge savings" over their (unreasonable) regular prices for those using loyalty cards.
Misrepresentations
Utilizing words such as descriptive terms or location terms to increase the perceived value of a product. An example would be advertising "Maine Lobsters" when in fact the lobster is from the Pacific ocean.
Buy one, get two free
This type of false advertising concludes that more is better. By increasing the price of a fire cracker, for example, to five times its original marginal profit-based price, a 5-for-1 "special" sale is offered while still keeping the same profit line. In other cases the free product is of lower quality than the originally purchased item.
Bait and switch
An offering of a service or product at a very low price with no intention to sell said service or product as advertised. This is accomplished by lowering standards on the advertised product -- such as guarantees, credit terms, quality either verbally or actual degrade in standards. Another method is to offer a "limited quantity" deal. Once the consumer is lead up to this point, sales personnel will try and coax a consumer to purchase the more expensive, real product.
False labelling
The use of labels with statements concerning quality, identity, quantity, manufacture or origin that are misrepresented or false. Another method of false labelling is hiding or destroying a label indicating the product's origin (e.g. "Made in Taiwan" or "Made in Botswana").
Call to Conspiracy
A product or service is offered under the premise that accepted "truths" that counter a claim are merely part of a larger conspiracy intended for the gain of an opposing party. One example may be a 'secret' immune system booster that doctors have been using for decades to give them super-human disease resistance, but don't want the public to know about because it would result in diminished financial gain.
False Credentials
An advertiser may have a false expert testify that a product is genuine and effective, when in fact it is not. An example of this practice is having actors dressed as doctors or wearing lab coats - lulling potential buyers into believing that the product is backed by the faith of knowledgable experts. Another example of this is scripted witness testimony. An actor is hired to claim that they were satisfied by a product or service, when in fact they never used it. A buyer may interpret the statement to mean that if the other 'customer' was satisfied, then they will be too.