Sharifah Diyana Meera NazreenSoh You Shing Surayyn Selvan

FALSE ADVERTISINGIntroduction to Business [BUSF]

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

commissionPrevents 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/