![Introduction to Business [BUSF0103]
FALSE ADVERTISING
Sharifah Diyana Meera Nazreen
Soh You Shing Surayyn Selvan](https://image.slidesharecdn.com/businesspresentationg5-130130213916-phpapp02/85/false-advertising-1-320.jpg)
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False Advertising
- 1. Introduction to Business [BUSF0103] FALSE ADVERTISING Sharifah Diyana Meera Nazreen Soh You Shing Surayyn Selvan
- 2. Advertising? • INFORMATION ADDRESSED TO THE PUBLIC • CONVINCE THE AUDIENCE TO BUY THEIR PRODUCTS
- 3. WAYS to advertise • NEWS PAPERS | MAGAZINES
- 4. WAYS to advertise • RADIO | TELEVISION | INTERNET
- 5. WAYS to advertise • BILLBOARDS
- 6. FALSE advertising? • FAKE / UNTRUE information advertised • The consumers buy the products or visit the store • ILLEGAL and UNETHICAL
- 7. HOW do they do it? • VAGUENESS Use weasel words to evade direct statements easily [ words like “HELP” or “up to” ]
- 8. HOW do they do it? • VAGUENESS CONTINENTAL baking company was charged by the federal trade commission for ambiguous advertising
- 9. HOW do they do it? • CONCEALED FACTS Advertisers hide unflattering information about their products in advertisements
- 10. HOW do they do it? • CONCEALED FACTS KRAFT advertised its Philadelphia cream cheese saying it was ½ the calories of butter
- 11. HOW do they do it? • CONCEALED FACTS Caverject was an alternative to viagra and aided in male impotency
- 12. HOW do they do it? • Exaggeration Advertisers make claims without concrete evidence “usually occurs in the food industry”
- 13. HOW do they do it? • Exaggeration Nabisco advertised its 100% bran cereal as fully flavored with 2 naturally sweet fruit juices
- 14. 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
- 15. HOW do they do it? • BAIT AND switch Advertise products that are unavailable then the owners convince the customers to buy something else
- 16. HOW do they do it? • BAIT AND switch A 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
- 17. 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
- 18. The SOLUTION? FTC
- 19. The SOLUTION? • Federal trade commission Prevents business activities that are unfair ; find out ads that are deceptive ; regulates unfair methods of competition
- 20. The SOLUTION? • LAWs PURE FOOD AND DRUG ACT (1906) – DO NOT MAKE, SELL OR TRANSPORT fake foods and drugs
- 21. The SOLUTION? • LAWs FEDERAl trade commission act (1914) – allows the commission to investigate and take down businesses with unfair methods of competition
- 22. The SOLUTION? • LAWs LANHAM ACT (1947) – protects business trademarks and doesn’t allow false advertising
- 23. THE END
- 24. 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
- 25. 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/
Notas del editor
- Advertising is a form of information that is addressed to the public in order to convince the audience watching to buy the products, or visit the business’ store
- There are several different ways businesses advertise their products and services :- On Print Media, those are news papers and magazines, on Mass Media, those are radio advertisements, televisions and the internet and Outdoor Advertising as well, things such as billboards and stuff
- There are several different ways businesses advertise their products and services :- On Print Media, those are news papers and magazines, on Mass Media, those are radio advertisements, televisions and the internet and Outdoor Advertising as well, things such as billboards and stuff
- There are several different ways businesses advertise their products and services :- On Print Media, those are news papers and magazines, on Mass Media, those are radio advertisements, televisions and the internet and Outdoor Advertising as well, things such as billboards and stuff
- False advertising however is fake or untrue information about a product that is advertised to the public so that they consumers will buy the product or visit the store. This is illegal and terrible unethical.
- There are ways that businesses carry out false advertising. Firstly, they use a technique known as “Ambiguity” or Vagueness. This is when they use “WEASEL” words to avoid direct statements that they have made. These word can be words such as “help” or “ “up to”. For example, a product could, “HELP” to prevent tooth decay. So if it doesn’t, the consumer cannot sue the business. Or when a product can kill “UP TO” 99% of bacteria. If it kills only 1% of bacteria, the consumer cannot sue the business
- A very good example would be when Continental Baking Company advertised their Profile bread saying that it would “HELP” in weight loss. BUT in reality it had the same amount of calories per ounce as other breads but the slices were cut thinner than other breads. They were actually charged by the FTC for putting out the ad. They will be explained later.
- Another way businesses falsely advertise their products is by hiding unflattering information about their products. This is so that the customers do not know they “dark side” of the products until they want to try it out AFTER they purchase it.
- When Kraft advertised their Philadelphia Cream Cheese, they said it had ½ the calories of butter! But they FAILED to tell that it was high in fat. All the weight watchers were very angry when they found out!
- Caverject was a drug that was an alternative to viagra and aided in male impotency. It “ can help you and your partner enjoy renewed spontaneity and sexual satisfaction”. However, they failed to tell the very excited men, that it was a prescribed medication that was to be injected directly into the male genitalia.
- Businesses also tend to exaggerate their products. They make claims about their products without concrete evidence! This usually happens when new vitamins or supplements come out and they want customers so desperately.
- Nabisco, a cereal company, advertised it’s 100% bran cereal as being fully flavored with 2 naturally sweet fruit juices. When actually, although there were fig and prune juices added, the most significant ingredient in terms of weight, was SUGAR!
- GE also exaggerated their 90 watt light bulb saying that it was better than your conventional light bulb. Actually, it just produced fewer lumens than any other light bulb.
- The Bait and Switch tactic is when the store owners advertise products that are limited or not in stock at all. Then when the customers arrive at the store, the store owners convince the customers to buy another product. Although this may seem like not a big problem, it is illegal and if a store is caught, they can be charged.
- For example, when a car sales showroom puts a normal looking car outside with an unreasonably low price tag the customer would be very interested. I mean who wouldn’t right? But once the customer enters the shop, the sales person will introduce a more expensive model to the customer and persuades him/her to purchase the car.
- But why do businesses do it? Well, this is so that they can convince the customers to buy their products. Some businesses also want to get rid of defective good quickly so they advertise it without telling the audience that they are defective. Businesses usually take advantage of the customers trust and lack of knowledge. However, if customers do find out, the businesses will most likely lose their customer loyalty and their sales will definitely spiral down.
- So how does one solve the abomination that it false advertising? One way is through the FTS
- Or Federal Trade Commission. They prevent businesses that run activities that are unfair and they interpret advertisements that are put out by businesses and find out whether they are falsely advertised
- Another way false advertising is solved is through laws and regulations that are set up by the government. One Act is the Pure Food and Drug act which states that businesses aren’t allowed to make, sell or transport adulterated foods and/or drugs
- The Federal Trade Commission Act allows the FTS to investigate and take down advertisements that are run by businesses as well as the unfair methods of competition used by businesses
- Finally, the Lanham Act protects businesses trademarks and prevent the businesses from running false advertising.