advertisements mislead consumers essay

Essay On Misleading Advertising

Introduction “The term ‘misleading advertisements, is an unlawful action taken by an advertiser, producer, dealer or manufacturer of a specific good or service to erroneously promote their product. Misleading advertising targets to convince customers into buying a product through the conveyance of deceiving or misleading articulations and statements. Misleading advertising is regarded as illegal in the United States and many other countries because the customer is given the indisputable and natural right to be aware and know of what product or service they are buying. As an outcome of this privilege, the consumer base is honored ‘truth in labeling’, which is an exact and reasonable conveyance of essential data to a forthcoming customer.” …show more content…

They are persuaded that he or she is getting a great deal, saving cash, or purchasing a good that will perform in a particular way. There are many different types of false and misleading advertising methods used by firms to lure consumers. Some of them …show more content…

“Comparative Advertising- Some advertisements or sales material may compare products or services to others on the market. These comparisons may relate to factors such as price, quality, range or volume. Comparative advertising can be misleading if the comparison is inaccurate or does not appropriately compare products. 5. Environmental Claims- Environmental claims may appear on small household products such as nappies, toilet paper, cleaners and detergents through to major white goods and appliances. They may include statements about environmental sustainability, recycling, energy and water efficiency or impact on animals and the natural environment, for example 'green', 'environmentally safe' or 'fully recycled'. Businesses making these claims must be able to substantiate them.” 6. “High Pressure Sales Tactics- This strategy is used to motivate customers to purchase a good or service that he or she does not want or does not intend to

Excerpt From Feed By M. T. Anderson

In the excerpt from M.T. Anderson’s Feed, the author shows how deceiving stores can be. The way employees are, and how they attempt to make their products fit into each individual person’s life, can become deceitful. Consumerism is a movement to protect consumers against useless, inferior, or dangerous products, misleading advertising, and unfair pricing. UBIK and Feed give good examples of Consumerism, although the excerpt from Feed does an outstanding job of showing examples of consumerism while getting straight to the point. In UBIK, the author has ads for a product as the beginning of each chapter.

Summary Of Amusing Ourselves To Death By Neil Postman

In order to back up his claims about the past sanctity of advertising, Postman favorably discusses its true purpose and paraphrases a famous orator: "Advertising [...] was to convey information and make claims in propositional form. Advertising was, as Stephen Douglas said in another text, intended to appeal to understanding, not to passions" (Postman 59-60). Ads need to pass off applicable facts for customers to consider any type of product with old, wordy ads. Companies do not have the convenience of covering for product quality with amazing, irrelevant pictures in black and white pamphlets. During the momentous switch with television commercials, Postman describes the consequences of beautiful pictures and famous people covering for the lack of product presentation: "These tell nothing about the products being sold.

Example Of Ethos Pathos Logos

If the commercial does not get you to buy their product then they are not persuasive towards you, but in with other people they could persuade them into buying

What We Are To Advertisers And Men's Women Summary

In “What We Are to Advertisers” and “Men’s Men and Women’s Women” both Twitchell and Craig reveal how advertisers utilize stereotypes to manipulate and persuade consumers into purchasing their products. Companies label their audience and advertise to them accordingly. Using reliable sources such as Stanford Research Institute, companies are able to use the data to their advantage to help market their products to a specific demographic. Craig and Twitchell give examples of this ploy in action by revealing how companies use “positioning” to advertise the same product to two demographics to earn more profit. Craig delves more into the advertisers ' plan by exposing the science behind commercials.

Federal Trade Commission Research Paper

Deceptive Advertising and the Federal Trade Commission The Federal Trade Commission, a government-sanctioned agency with the mission and power to protect consumers from unfair business practices, have created the standards and regulations for deceptive advertising (Federal Trade Commission[FTC], 2007). Deceptive advertising has been ruled by the FTC (1983) to be: “a representation, omission or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer 's detriment” (para. 8). This statement has been reprinted by Zelezny, attorney and senior public relations executive, in his textbook, Communications Law: Liberties, Restraints, and the Modern Media (Zelezny, 2011, p. 507).

The Onion Satire

The mock article from The Onion expresses the gullibility of the consumer to believe whatever he or she is presented with and the laziness for never questioning it. The Onion emphasizes such features in an indirect way, by exaggerating the techniques used by marketer such as, appealing to false authority, using Orwellian language and logical fallacies. This creates a humorous article, which exposes a serious point The Onion tries, and succeeds, in making about the modern consumer: he is being controlled by the advertisements he sees. The first sentence in The Onion’s article clearly states marketers use of untrustworthy techniques to sell their products; “ MagnaSoles shoe inserts, which stimulate and soothe the wearer’s feet using no fewer than five forms of pseudoscience."

Rhetorical Analysis Of The Onion

Advertisers create false realities and exaggerate the abilities of their products in order to attract

Advertising's Fifteen Basic Appeals Summary

Advertising has been around for decades and has been the center point for buyers by different subjects peaking different audience’s interests. Advertisers make attempts to strengthen the implied and unequivocal messages in trying to manipulate consumers’ decisions. Jib Fowles wrote an article called “Advertising’s Fifteen Basic Appeals,” explaining where he got his ideas about the appeals, from studying interviews by Henry A. Murray. Fowles gives details and examples on how each appeal is used and how advertisements can “form people’s deep-lying desires, and picturing states of being that individuals privately yearn for” (552). The minds of human beings can be influenced by many basic needs for example, the need for sex, affiliation, nurture,

History Of False Advertising

Today you can see advertising pretty much everywhere billboards, television, movies, magazines and most of them are targeting young girls because they know how influenced they’re and they take the advantage of it. False advertising or deceptive advertising is the use of false or misleading statements in an advertisement. False advertising is illegal in most countries. However, advertisers still find ways to deceive consumers in ways that are legal, or technically illegal. In a magazine, you would see an edited version of that woman airbrushed, heavy photoshopping in order to sell the product by misleading the young girls making them believe that they need it in order to feel or to be beautiful and advertisers believe that thin models sell products.

The Pros And Cons Of Deceptive Advertising

It is an unlawful act made by various parties of a specific good or service to inaccurately advertise their product, through false or misleading statements (Drake, 2011). Advertisers should strongly evade advertisements that have the ability to deceive, regardless the fact that nobody may be deceived (Kotler et al., 2013). Consumers have the right to know what service or product they are purchasing. Therefore, false advertising is seen as unlawful in various nations (Consumer.laws.com, 2016). In America, Truth in Advertising (TINA.org) exists to support honest advertising as well as eliminating deceptive marketing

Essay On Targeted Advertising

Targeted Advertising: Helpful or Hurtful? Technology has challenged the rules of privacy, and people are questioning if privacy is a necessity anymore. Technology, specifically apple products such as iPhones, is a need in many people’s lives, and they cannot imagine not being able to check their phones for the weather or to ask Siri to find the closest restaurant. Unfortunately, people do not realize companies use technology for targeted advertising, which is an invasion of privacy. An invasion of privacy is when people’s private information is used to influence them and is given to other people or companies unknowingly.

Logical Fallacies In Advertising

Advertisements are everywhere, on television, radio, social media, billboards, magazines, and even on yearbooks. On the other hand, would it not be nice if every advertisement an individual saw, read, or heard were actually true? Like using Axe body spray really did attract women or eating Snickers truly made one satisfied in seconds? Yet, most of the time the advertisements that seem too good to be true, actually are. In fact, countless of ads are only slightly true and instead filled with many common errors in reasoning, known as logical fallacies, a sneaky marketing technique companies utilize to trick a consumer into giving them their undivided attention and money.

The Man Your Man Could Smell Like Analysis

Have You Been Brain Washed? Have you ever looked at an advertisement and pictured yourself using the product that was being advertised, to than actually being interested in purchasing that product? Well that was their goal, advertisers have mastered the market industry by being aware of the fact that us humans are very concerned with our image. Advertisers know that we have a greater chance of buying a product if we can picture ourselves how we would like to be portrayed of course with the help of their product. In ads, companies want to provide an image that can be relatable to the viewers and what would want to appeal to them.

John Lannon Analysis

After careful review of 13 commercials most, if not all, fail the criteria for ethics penned by author John Lannon. Of his 11 points, each of these commercials fail on several counts. Most all failed the point “Do I avoid exaggeration, understatement, sugarcoating, or any distortion or admission that leaves readers at a

Willdy's Waffles Marketing Strategy

When clients learn that they use environmentally friendly resources, this will show them that they not only care about the environment, but also that they are a responsible company. This improved brand image will lead to an increase in sales, furthering their company’s profits. Price Because they are introducing their product as a new market, they will use price skimming strategy.

More about Essay On Misleading Advertising

Nevada Today

Is advertising manipulative, professor laura crosswell breaks down strategies some advertisers use to mislead consumers to sell their products.

Advertising is in nearly every form of media, from newspapers to videos.

"Ask the Professor: The answer may surprise you!" with science-related doodles in background

Find more answers here!

Advertising is more calculated, sophisticated, and personalized than ever before. If you look closely though, you will notice some time-honored techniques that still appear in ads today.

Here are a few tricks of the trade that motivate consumer behavior:

Simplicity . Research shows that as our choices increase, so do our levels of anxiety and dissatisfaction. Advertisers simplify complex issues, often as either/or scenarios, to make decision-making less daunting.
Emotion . Advertisements appeal to emotion rather than reason. Promotional material for a sleeping medication might show friends enjoying dinner together or a father engaged in family activities rather than focusing on the product itself. Ads are designed to remove thinking from the equation.
Color . Color substantially influences immediate consumer judgments. Advertisers will use specific color strategies to shape brand perceptions and purchasing behaviors (i.e., Apple using white to convey clean, simple design).
Deals . People are more emotionally invested in avoiding loss than earning reward. Flash deals and pseudo-urgency ads tap into our loss aversion and fear of missing out.
Basic human needs . Advertisers appeal to basic human needs (such as food or sex) to trigger consumer cravings. Clever tricks like substituting glue for milk in cereal commercials, adding dish soap to soda for surface bubbles, or meticulously gluing sesame seeds to a hamburger bun make products appear more appetizing and drive feelings of unmet needs.
Symbolism . Advertisers use symbolic codes to establish brand connections to certain values or identity systems. A laundry detergent label might feature a smiling baby wrapped up in a soft blanket to encourage product associations with safety/love/good parenting.

In sum, advertisements influence us in ways we don’t always realize. But knowledge is power! Stay informed, do your research, and attend to the ways in which commercial messages try to manipulate your purchasing behaviors.

Laura Crosswell is an assistant professor in health communications at the Reynolds School of Journalism. Her research focuses on the cultural implications of consumerism and persuasive texts with a specific concentration on public health messaging. Her research is showcased in Politics, Propaganda and Public Health: A Case Study in Health Communication and Public Trust .

Impact of Misleading Advertisements: Issues and Remedies

Advertising is one of the public media options used to reach out to an audience, create and sustain their interest through words and illustrations to encourage them to buy a particular product or a service. The communication can be made either through mass media or through new media. The Mass media includes newspapers, television, magazines, commercials, Radio advertising and the new media includes blogs, websites or text messages .The rationale behind advertising is to update the consumer regarding a particular product and its availability in the market. The prime objective of advertising is toward generating demand used for new products by attracting the interests of public towards it. Further; it is intended to enhance the awareness among the customers. Ambiguous and deliberate attempt to mislead can have serious economic consequences, especially when exposed to large target groups or when it occurs for long duration. Such advertisements will adversely affect the sales of the product and its brand image and in the end the producer and distributors as well. Sometimes competitors honest promotional efforts of the same product will also be affected since the consumer will presume all advertisements are bogus. Such a practice is unethical. From consumers end he will pay higher price for the product based on the tall claim made and the product does not match the claim. One does not fundamentally object to any exaggeration in the manner the products is advertised but when it extends to falsehood exaggerating the facts to hood wink the customer then it becomes unacceptable. This article highlights such issues and looks at the concepts of misleading advertisements and their impact on Indian consumers. The article also aims to provide possible remedies to end such practices and ensure healthy and fair advertisement strategies. " Advertising may be described as the science of arresting human intelligence long enough to get money from it.-Stephen Leacock

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the rise as a result of businesses seeking to compete for customers. It would appear that presentation of false information has gradually been adopted as a major marketing strategy by some organisations, and it is becoming a new normal. It is however, worth noting that such false information are never helpful to the customers who soon realise that they acted (by buying goods or services) on the basis of information that cannot be verified nor validated. Accuracy should entail full disclosure of all information because this is crucial in the marketing field where consumers expect to make informed decisions. The regulations on advertisement and marketing illegalises use of false or misleading representation or symbol for quality, quantity, data of manufacture, methods of use, content, price, place of origin, the manufacture, processor or place for a product either in advertisement or other platform. In this study, it has been found that while misleading advertisements tend to provide overtly more positive information than is necessary, such positivity tend to result in negative experience for customers. Studies are expanding in the roles of false and misleading information that form the content of advertisements. This study has explored the importance of enhancing marketing activities through truthful facts, to ensure that the functions of the organisation (especially outward facing activities like marketing) are believable and thus helpful to customers to make the right decisions. The study emphasises the importance of buyer being aware of key information about a product or services through careful search during the buyer decision process.

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Michael R Hyman

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Business Strategy Review

John Kay , Evan Davis

Advertising is not a process by which gullible consumers are persuaded to buy things they don't want, according to the authors of this paper. Instead, it furnishes consumers with some useful information. It is not so much the claims made by advertisers that are helpful, but the fact that they are willing to spend extravagant amounts of money on a product that is informative. The authors find tentative evidence for this view of advertising and discuss its implications.

Where should we draw the line on misleading advertising?

Professor, Department of Economics, Monash University

Disclosure statement

Stephen King was a Member of the Australian Competition and Consumer Commission, from 2004-2009.

Monash University provides funding as a founding partner of The Conversation AU.

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Two recent cases highlight the problem of misleading advertising.

In the United States, the Federal Trade Commission (FTC) has dismissed an appeal by POM Wonderful about health claims for their juice.

The FTC’s decision sets a clear standard for business.

If manufacturers make medical or health claims about their products, then they need evidence that meets normal medical standards: “well-designed, well-conducted, double-blind, randomized controlled clinical trials”.

In Australia, the Australian Competition and Consumer Commission (ACCC) is appealing a decision by the Full Federal Court on a variety of advertisements by internet provider TPG.

The Full Court overturned a lower Court, deciding that a variety of “small print” disclaimers used by TPG were not misleading or deceptive.

The key criterion for the Court was whether, when the advertisements were taken as a whole, the “qualifying” fine-print material was “sufficiently prominent or conspicuous to prevent the primary statement from being misleading”.

Readers can make up their own mind. The TPG advertisements are appended to the Court decision.

The Full Court decision highlights the subjective nature of our current laws on misleading advertising. If an advertisement is false or misleading, then it is illegal. But where does marketing spin cross the legal line to become misleading?

The law in Australia considers a “hypothetical ordinary or reasonable member of the class to whom the advertisements were directed”. This “reasonable person” test makes good sense in many situations, for example, when trying to judge if a person is negligent. But it makes little sense for the “fine print” in advertising.

A business controls its advertising. If it designs a print advertisement with a large statement designed to attract the reader, followed by smaller qualifying statements, then the intent of the advertisement is to mislead consumers – at least temporarily. The aim is to get consumers to pay attention to your advertisement. Once “drawn in”, many (perhaps most) readers will notice the fine print and “move on”. But some will not — and that is where the harm is done.

Some customers will be misled and will purchase the product on the basis of their mistake. The business will make more profit and the customer will be harmed.

This harm is easily avoidable. A business does not have to use fine print; using a dubious headline to catch readers’ attention is a deliberate choice.

Rather than using the “reasonable person” test to inform a legal definition of a misleading advertisement, perhaps a better measurement would be a test that determined whether a person — who is likely to be glancing quickly at an advertisement, without any specific background knowledge of a product — will be misled.

New pricing laws, introduced in 2010, are a move towards this tighter standard. For example, section 48 of the Australian Consumer Law requires that the single “final” price of a good be as prominent as the component prices.

Consumers are not expected to add up the components or search small print for a final price. So why don’t we have this same tighter standard for all advertising?

One counter argument is that tighter standards are not needed because the market will work it out.

This argument fails on two grounds.

First, while the market may work it out, this can take time. Zinman and Zitzewitz, of Dartmouth College , illustrate this process in a study of misleading “snow reports” by private ski fields in the US.

Their study highlights the systematic distortion of reported snowfalls as each resort tries to make itself look a bit better than the competition. Further, they show how this deceptive conduct was undermined by a smart phone application that allowed skiers to report the true conditions – if the resort had mobile phone coverage!

The bottom line from Zinman and Zitzewitz is simple:

“In all, the results suggest that deceptive advertising varies sharply with incentives, both within resorts (over time, at high-frequencies), and across resorts”.

At best, the market sorted it out — eventually.

Second, misleading advertising represents a classic case of dysfunctional market conduct. Each business is tempted to push the boundaries of misleading marketing because they know that their rivals will do the same thing. They know that this upsets consumers in the longer term, but if they do not do it, then they will lose business in the short term. All legitimate businesses — as well as their customers — can gain by tighter advertising standards. It is only the charlatans who lose out.

The High Court will have an opportunity to revisit our standards for misleading advertising when it hears the ACCC’s appeal. If it can draw sharp, clear rules, like the FTC in the POM Wonderful case, then we will all be better off.

Advertising
US Federal Trade Commission

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Misleading Advertisements

In the wake of increasing competition in the world of business, most companies have embarked on advertisement campaigns aimed at luring consumers to their products. The nature of advertisements is that they accentuate the strength of a certain product while concealing the disadvantages of the same product. Essentially, all adverts aim at influencing the consumers to make favorable decisions in respect to the purchase of the products. While most companies go an extra mile in making their products more appealing in the eyes of the consumers, they sometimes do so at the consumer’s expense. Usually, the manner in which the products are displayed does not reflect the true reality on the ground. This scenario results in the eventual disappointment of consumers and may even work negatively against the company. The current generation of product advertisements is misleading to the consumers especially on the product usage.

In the course of advertisements, companies tend to portray a different picture of the products from the one that is realistic. In so doing, the company’s end up raising the hopes and expectations of the consumers only to realize later that it was all hype. Good advertisements are persuasive and prompt consumers to purchase the intended products. However, companies are prone to mislead the consumers by appealing to their emotions in different ways. The advertisers have prior knowledge of the emotional attachment that consumers have towards certain products (Schrank, 2009). The companies could thus appeal to these emotions in a bid to persuade the consumers to make purchases of the products on sale. Normally, the advertised products are tipped to do more than they actually can with an emotional touch that makes people want to try them out. For instance, women who have had difficulties in removing stains during laundry may be misled through adverts that declare a detergent can remove all stains. Some consumers may take this to imply that the detergents are capable of removing literally all stains including those that cannot be removed in reality. In buying the products, the consumers are then acting on misleading information that is hidden beneath catchy advertisement phrases.

Another way in which advertisements can be misleading is through the appearance of the products being advertised. Some of the adverts floated in the different information media are presented in a manner that appears to be authoritative when indeed they are not. In some cases, companies may get the services of print media writers and editors to shape opinion on certain products through articles. In these articles, the writers can claim their use of certain products and services and how they derived satisfaction from the same. The most notable advertisements that mislead in this respect are those that hype certain hotels and restaurants. In such cases, the writers may claim to have visited certain locations and testify of the overwhelming experience they achieved from such visits. In most cases, however, these writers rely on information from the companies advancing such authoritative appearances. The writers happen to not have visited the venues in reality but depend on the company’s narration to put down articles that sway the audience to these locations. In concealing the adverts through articles that command authority, the company’s not only mislead through the appearance but also in terms of the intent of such adverts. The people behind such adverts could be lauded for their innovation but they are just dishonest and cunning people out to mislead the public into their bait. Adverts should be labeled as adverts and the public should honestly be notified of the intent of different adverts before they are propagated to them.

Companies may also float misleading adverts through hiding any imperfection. For instance, a company manufacturing beauty products may use models to portray the beauty that results from the product’s usage. However, the choice of what the consumer sees is dictated by the intents of the company advancing the adverts. In reality, such models do not look as good as they are portrayed to do. In fact, there is a general consensus that adverts are photo shopped in a bid to sway the consumers into buying the products. Moreover, most of the models do not even have a prior usage of the products they are using. Even when the models have used the products before, the results portrayed are not attributable to the products alone (Fowles, 1997). By defining the perfections of certain aspects in life, adverts attain an advantage in misleading consumers into believing that they must attain those aspects to be cool in society. For instance, adverts may portray beauty as having a slender body and use that to advertise a product whose usage results in such a body. However, the adverts do not show the imperfections of the use of those products but conceal the same to portray a fake perception.

There is an increased use of advertisements to market products and increase customer penetration. However, the strategy is normally used at the expense of the customers through the propagation of misleading information regarding the products. Essentially, a large percentage of the current advertisements are misleading leading to ill informed choices from the customers. Although adverts are free to be innovative, they must not exceed the boundaries of truthfulness. Nonetheless, consumers must however be able to decipher the misleading facts in adverts because the companies do not intend to reveal the same.

Works cited

Schrank, Sarah. Art and the City: Civic Imagination and Cultural Authority in Los Angeles . , 2009. Internet resource.

Fowles, John. The Collector . Boston: Little, Brown and Co, 1997. Internet resource.

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Introduction

Advertising is an essential element of any business's marketing strategy. It is a means of promoting products and services and creating awareness among consumers. However, advertising not only informs and influences consumers but also affects their behaviour. Understanding the impact of advertising on consumer behaviour is crucial to ensure effective advertising efforts. In this article, we will discuss the significance of comprehending the influence of ads on consumers.

The impact of advertising on consumer behaviour

Advertising influences consumers' purchasing decisions: Advertising plays a significant role in shaping consumers' buying behaviour. Ads are designed to create a sense of urgency, need, or desire in the minds of consumers, which can persuade them to buy a product or service.
Advertising affects consumers' perception of a brand: Advertising can impact how consumers perceive a brand. A well-crafted ad campaign can create a positive brand image in the minds of customers, while a poorly executed campaign can tarnish a brand's image.
Advertising creates brand loyalty: Consistent advertising efforts can create brand loyalty among consumers. When a consumer repeatedly sees an ad for a particular brand, they develop trust in the brand and are more likely to remain loyal to it.
Advertising shapes consumers' preferences and attitudes: Advertising can shape consumers' attitudes towards a particular product, service or brand. It can influence how they perceive a brand's value, quality, and benefits, influencing their preferences.

It is crucial for businesses to understand the impact of advertising on consumer behaviour to use it effectively to promote their products and services. Proper analysis of advertising campaigns can help businesses develop a better understanding of their target audience and how they respond to advertising efforts, allowing them to refine their advertising strategies.

The Science of Advertising

Advertising is the art of persuading people to buy a product or service. But how do advertisers get into the minds of consumers to convince them to make a purchase? This is where the science of advertising comes in.

The Role of Consumer Psychology in Advertising

Consumer psychology plays a crucial role in advertising. Advertisers need to understand what motivates consumers to make a purchase, and what factors influence their decision-making process.

Some of the factors that advertisers need to consider include:

The consumer's needs and desires
The consumer's values and beliefs
The consumer's social and cultural background

By understanding these factors, advertisers can create ads that are more effective in persuading consumers to make a purchase.

How Ads Manipulate and Persuade

Ads use a variety of techniques to manipulate and persuade consumers. These techniques include emotional appeals, social cues, and cognitive biases.

Emotional appeals are one of the most effective ways to persuade consumers. Ads that use emotional appeals tap into the consumer's emotions, triggering feelings of happiness, fear, or sadness. This can lead the consumer to make a purchase based on their emotional response, rather than a rational decision.

Social cues are another way that ads manipulate consumers. Ads may feature social cues, such as celebrities or popular products, to make the consumer feel like they are part of a group. This can create a sense of belonging, making the consumer more likely to make a purchase.

Cognitive biases are another technique used by advertisers. Cognitive biases are mental shortcuts that our brains take when we make decisions. Ads may use cognitive biases to influence the consumer's decision-making process, such as by framing the product in a positive light, using scarcity to create a sense of urgency, or offering a discount.

Overall, the science of advertising is a complex field that requires a deep understanding of human psychology. By using techniques such as emotional appeals, social cues, and cognitive biases, advertisers can create ads that are more effective in persuading consumers to make a purchase.

Impact on Purchasing Habits

Advertising can have a significant effect on consumer behavior, influencing their purchasing habits, creating desire, and guiding decision-making processes. Here’s how:

Creating Desire

Advertisements create a sense of desire among consumers by showcasing the benefits and features of a particular product or service. They use persuasive language, appealing visuals, and emotional appeals to stimulate the consumer's senses and make them crave the product. For example, the famous Coca-Cola Christmas ads create a sense of warmth and togetherness that makes people want to share a bottle of Coke with their loved ones during the festive season.

Influencing Preferences

Advertising plays a significant role in shaping consumer preferences. Brand positioning, brand image, and brand recognition are all achieved through advertising. Consumers are likely to choose brands that resonate with them and match their values. Advertising helps to create and reinforce brand image, making a lasting impression on consumer's minds. For example, Apple's "Think Different" campaign positioned the company as an innovative, cutting-edge brand that resonates with people who value creativity and originality.

Guiding Decision-Making Processes

Advertisements guide the consumer decision-making process by providing information about the product or service, offering comparisons with competitors, and highlighting the unique selling points. Consumers often turn to ads to learn about new products or to compare prices, features, and benefits. For example, online display ads for hotels that promote amenities like free breakfast, free Wi-Fi, and pet-friendly policies can influence consumers' decisions when booking their accommodation.

Examples and Statistics

Research has shown that advertising has a positive impact on sales, with brands spending around $180 billion globally on advertising in 2020 alone. (Source: Statista)
A study found that 70% of consumers are more likely to purchase from a brand that they follow on social media. (Source: Forbes)
Advertising has been found to influence children's snack preferences, with those exposed to food ads more likely to choose unhealthy snacks. (Source: Pediatrics Journal)

Overall, advertising plays a crucial role in influencing consumer behavior and guiding their purchasing habits. By creating desire, influencing preferences, and guiding decision-making processes, ads can have a significant impact on sales and brand success.

Brand Perception

Brand perception is the way consumers view and interpret a brand. It is shaped by various factors such as advertising, product quality, customer service, and social media presence. Advertising plays a vital role in shaping consumer perceptions of brands by creating certain associations, establishing credibility, and cultivating loyalty.

Associations

Advertisements create associations between a brand and certain aspects such as quality, reliability, and value. For example, ad campaigns that emphasize a brand's affordability and value can create the association of the brand being budget-friendly. Similarly, ads that showcase a brand's commitment to quality can build an association of trust and reliability.

Credibility

Ads can also establish a brand's credibility. By highlighting a brand's unique features, awards, and customer testimonials, ads create a perception of expertise and authenticity. For instance, an ad campaign that touts a brand's innovative technology can establish its credibility as a cutting-edge industry leader.

Finally, advertisements can cultivate loyalty among consumers by creating an emotional connection with the brand. Ads that showcase a brand's values, such as sustainability or social responsibility, can appeal to consumers who share those same values. Moreover, ad campaigns that build a brand persona are likely to create a loyal fan base that feels a personal connection with the brand.

Overall, advertising plays a crucial role in shaping consumer perceptions of brands. It can create positive associations, establish credibility, and cultivate loyalty. For instance, a study found that after viewing a brand's ads, consumers were 70% more likely to purchase the brand's products or services. Therefore, it is essential for brands to invest in effective advertising campaigns that help shape the desired consumer perception.

The Future of Advertising

In today's digital age, advertising has become an essential component of businesses. With the advancements in technology and changing consumer preferences, advertising is evolving at a rapid pace, challenging businesses to keep up with the latest trends and adapt to new strategies.

Advancements in Technology

The integration of artificial intelligence, machine learning, and data analytics has transformed the advertising industry. Brands are now using data to develop more targeted marketing campaigns and personalized communication with their customers. Emerging technologies such as augmented reality, virtual reality, and voice-activated assistants are also changing the way advertisements are being delivered to consumers.

Changing Consumer Preferences

As the power of information has shifted from the advertisers to the consumers, they are becoming more conscious of the advertising messages they receive. Brands are now focusing on creating authentic and engaging content to build lasting connections with their customers. Social media and influencers are playing a vital role in shaping consumer preferences, where customers are looking for authenticity, transparency, and personalized experiences.

Ethical Considerations and Potential Implications

With the increasing reliance on technology and data, there are ethical concerns surrounding data privacy and security. Consumers are now more aware of how their data is being used and expecting businesses to handle it responsibly. Additionally, the rise of deep fake technology, which can create realistic but false content, raises questions about the authenticity of advertisements and the potential implications it can have on society.

Advancements in technology are changing the way advertisements are delivered.
Changing consumer preferences require brands to create engaging and authentic content.
Ethical considerations around data privacy and deep fake technology demand responsible advertising practices.

As businesses navigate the ever-changing landscape of advertising, understanding these trends and their implications is crucial to stay ahead of the game in the future of advertising.

Advertising has a significant impact on consumer behaviour, as it influences their decision-making processes and purchasing choices. In this article, we have highlighted some of the key points that demonstrate the influence of ads on consumer behaviour. We have seen how ads can create brand awareness, shape attitudes, and affect people's emotions towards a product or service. We have also discussed the role of advertising in influencing consumer preferences and driving sales.

It is important for consumers to become more aware of the influence of advertising and make informed decisions. By being more critical of the messages conveyed in ads, consumers can avoid falling prey to marketing strategies that are designed to manipulate their behaviour.

Key Takeaways:

Advertising plays a crucial role in shaping consumer behaviour.
Ads create brand awareness and influence consumer attitudes and emotions.
Advertising drives sales and can affect consumer preferences.

As consumers, it is important to be mindful of the impact that advertising has on our behaviour. By questioning the messages conveyed in ads and making informed decisions, we can avoid being influenced by marketing strategies that are designed to manipulate our choices.

Take action now: Become more aware of the influence of ads by critically evaluating the messages conveyed in marketing campaigns. Research the product or service before making a purchase decision and seek out recommendations from trusted sources.

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Misleading Advertisements In India

Contributor

Deceptive and false advertising is not only unethical; they distort competition and, of course, consumer choice. An advertisement becomes misleading or false when suppose an advertisement of a water purifier that filters only bacteria (and not viruses) claims that it gives 100 percent safe water, then it is a false statement or if an advertisement for a face cream claims that it removes dark spots on the face and even prevents them from coming back, the manufacturer should be able to prove this. Or else, it is a deceptive advertisement.

Section 2(1) (r) of Consumer Protection Act, 1986 defines the term 'unfair trade practices.- Unfair trade practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the false and deceptive practice. Other such protection acts are Monopolies and Restrictive Trade Practices Act 1969, the main objective of the MRTP Act is to ensure that the operation of economic system does not result in the concentration of economic powers in the hands of a few hands but MRTP generally did not include any provinces against misleading and false advertisement but the 1984 amendments in MRTP Act incorporated, inter alia, new provisions for the regulation of unfair trade practices e.g. false representations, misleading advertisements, bargain sales, bait and switch selling, hoarding and destruction of goods etc.

An advertisement is said to be deceptive if it misleads people, changes reality and influences consumer buying behavior. In most jurisdictions, advertising regulations make it illegal to use false or misleading advertising. It is illegal to misrepresent the quality of any product, or its related specifications related to its Composition, manufacture, price or place of origin. "false" refers to the misrepresentation of the facts; false information can result in an unacceptable number of people using the information to make wrong decisions, but consumers are vulnerable to advertising when presented with a unique environment.

In June 2022, to protect consumer rights against wider advertising issues, the CCPA notified the Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 with immediate enforcement.

The Guidelines provide added protection to consumer rights with clear and mandatory conditions for valid and non-misleading advertisements, and free claims advertisements. Further, the Guidelines recognize and allow bait advertisement on fulfilling prescribed conditions, as well as provide mandatory requirements for disclaimers in advertisements, advertisement endorsements, and disclosure of connection between endorser and trader. Besides, the Guidelines prohibit surrogate advertising, and prescribe restrictions on free claims advertisements and advertisements targeted towards children. The duties of manufacturers, service providers, advertisers and advertising agencies are outlined in detail under the Guidelines.

The salient features of the Guidelines are as follows:

Scope : The Guidelines is applicable to all advertisements (regardless of form, format and medium), and to all manufacturers, service providers, traders, advertising agencies and endorsers associated with the advertisements. This brings both private and public advertisements and associated entities under the ambit of the Guidelines.
Contain truthful and honest representation;
Non-misleading consumers through exaggeration of the product or service's accuracy, scientific validity, practical usefulness, capability or performance;
Do not present consumers' legal rights as the offer's distinctive feature;
In case there are specific informed or scientific opinion in the advertisement claims, it should not suggest the advertisement to contain universally-accepted claims;
In case of failure to purchase the advertised goods or services, it must not mislead the consumers or their families of the nature or extent of risk to their personal security;
Non-misleading consumers about the unsubstantiated claims, which are merely based on publications;
Advertisements must not entice consumers to purchase goods or services lacking reasonable prospect of sale.
Adequate supply of goods or services must be ensured by the advertiser to meet the foreseeable demand.
In case of default in meeting the supply of advertised goods or services, the advertiser must provide the reasons for the default, and more specifically, about the limited stock and the advertisement's purpose to assess potential demand, as applicable. Further, consumers must not be misled by omission of any applicable geographic or age-limit restrictions for the advertised goods or services.
In case of unfavorable market conditions, the advertisements must not mislead consumers about such conditions or unavailability of the advertised goods or services, and must not induce the consumers to buy those goods or services at less favorable condition
Under the Guidelines, an advertisement disclaimer may clarify claims or resolve ambiguities, without contradicting the material claims, messages, or dictionary meaning of words used in the advertisement. However, the disclaimers must not conceal material information or commercial intent so as to deceive consumers, and must also not attempt to rectify a misleading claim. The disclaimer's requirements and circumstances substantially correspond to those set forth in the Code of Self-Regulation by the Advertising Standards Council of India.
Penalties : The Guidelines seek to keep advertisers in check against misleading or false advertising practices. For violation of provisions related to misleading advertisements under the Guidelines, the CCPA can impose a penalty of INR 10 lakhs on manufacturers, advertisers and endorsers. For subsequent violations, the CCPA may impose a penalty extending up to INR 50 lakhs. As per the CPA, the CCPA may also prohibit the endorser of a misleading advertisement from making any endorsements for up to one year, which can extend to 3 years on subsequent non-compliance.

While the Guidelines deal with surrogate advertisements, however, there is lack of clarity on what kinds and extents of surrogate advertising are permitted under the Guidelines. Many liquor and tobacco brands have used music festivals, goods and tours as advertising platforms to indirectly drive consumption of their alcoholic and non-alcoholic beverages. Such brands have now sought the Indian government's clarity on whether claims of "responsible drinking" or "don't drink and drive" are permissible in surrogate advertisements. Nonetheless, the Guidelines give legality to the permissible and non-permissible advertising standards in India. The provisions related to bait advertising, free claims advertising, children targeted advertisements and endorsements definitely are positive leaps towards ensuring protection of consumer rights as well as encouraging genuine advertisements with better consumer awareness and trust.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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5 Misleading Advertising Examples

Misleading practices in the world of digital advertising have become increasingly prominent. For example, 17% of global ad impressions in April-June 2022 were found to be fraudulent.

But the industry has more to worry about than fraudulent impressions, with misleading advertising another major cause for concern. Misleading advertising, which can range from exaggerated claims to outright falsehoods, poses a serious challenge to consumer trust and the integrity of the advertising industry itself.

To understand more about misleading advertising, the tactics behind them and their impact, we’ve compiled a list of examples. These examples highlight the importance of ethical advertising practices and the need for vigilance against deceptive tactics in an industry where honesty is crucial.

What Is Misleading Advertising?

Misleading advertising refers to the use of fraudulent or deceptive information in digital or traditional marketing to influence consumer behavior in a way that they wouldn't have otherwise. This type of advertising can compel consumers to make purchases based on incorrect or misleading information.

False or misleading advertising can take various forms, including omitting crucial product or service information, and it applies across different advertising mediums such as magazines, catalogs, physical and digital advertisements, and websites.

But this is not just about outright lies or false claims. It can also involve more subtle forms of deception, such as presenting information in a way that the average consumer is likely to misinterpret, using small print to hide important terms, or making comparative claims without a clear basis.

5 Misleading Advertising Examples

1. volkswagen.

Renowned automotive brand Volkswagen faced significant legal challenges owing to its misleading advertising practices. The core issue revolved around its "clean diesel" campaign, which falsely advertised certain VW and Audi diesel vehicles as environmentally friendly and compliant with emissions standards.

The US Federal Trade Commission (FTC) revealed that Volkswagen's claims of low-emission, environmentally-friendly diesel cars were based on the use of a "defeat device” . This device manipulated emissions testing, making the vehicles appear compliant with environmental standards when, in reality, they were not.

This deceptive practice led to a massive false advertising case, resulting in Volkswagen's agreement to a settlement that included significant financial compensation for affected car owners and lessees.

Deceptive advertising, as in Volkswagen's case, is not just a rare occurrence but a serious issue in the industry. It highlights the importance for brands to maintain honesty and transparency in their advertising. Misleading consumers can lead to severe legal repercussions, financial losses, and reputational damage.

The consequences for Volkswagen were substantial. It faced a record-breaking fine, with the FTC announcing a partial settlement that required Volkswagen to return as much as $10 billion to the owners and lessees of affected vehicles. Not to mention, Volkswagen's reputation suffered a significant blow, eroding consumer trust and tarnishing the brand's image globally.

2. Red Bull

Red Bull is a globally recognized energy drink brand known for its catchy slogan, "Red Bull gives you wings”. The brand has built a strong presence in the market through its unique marketing strategies and sponsorships of various high-energy sports and events.

In a notable case, Red Bull faced a class action lawsuit over its advertising claims. Benjamin Careathers, David Wolf, and Miguel Almaraz filed the lawsuit, alleging that Red Bull falsely advertised its energy drinks as offering specific functional benefits, such as improved physical performance and reaction time, that persuaded consumers to pay a premium price for the product. The plaintiffs argued that these claims were deceptive and lacked scientific backing.

Red Bull agreed in 2014 to pay $13 million to settle the lawsuit, although the company denied any wrongdoing or liability. As part of the settlement, affected consumers who had purchased a Red Bull product since January 1, 2002, were eligible for a $10 cash payment or a coupon worth $15 in Red Bull products. The company maintained that its marketing and labeling had always been truthful and accurate, and the settlement was to avoid the cost and distraction of litigation.

While Red Bull remains a popular brand, this lawsuit brought attention to the need for more transparency in advertising claims. The case serves as a reminder for brands to carefully consider the accuracy of their marketing messages and the potential impact on their reputation and consumer trust.

Kellogg Co., a prominent name in the breakfast cereal industry, faced federal charges for falsely advertising the benefits of its Frosted Mini-Wheats cereal. The FTC announced that Kellogg had agreed in 2009 to settle these charges , which centered around misleading claims in their advertising.

Kellogg's national TV ads claimed that eating Frosted Mini-Wheats could improve children's attentiveness by around 20% compared to those who skipped breakfast. However, the FTC found that these claims were exaggerated. The study the ads referenced showed that only about half of the children experienced any improvement in attentiveness, and only 11% saw the 20% improvement claimed in the ads.

This incident serves as a reminder of how important it is for brands to back up their advertising claims with credible data, especially when they relate to health benefits. Misleading advertising can lead to significant legal consequences and damage to a brand's reputation.

For Kellogg, this case resulted in it needing to adjust its marketing strategies and reinforce the importance of maintaining integrity in advertising. It also served as a reminder to the industry about the potential consequences of overstepping the boundaries of truthful advertising.

4. Johnson & Johnson

Multinational Johnson & Johnson is known for its wide range of consumer goods, medical devices, and pharmaceutical products. Among its most iconic products is Johnson's Baby Powder, a staple in many households for decades.

Johnson & Johnson faced significant controversy over its Baby Powder product. The company was accused of targeting specific demographics, particularly African-American and overweight women, for its talc-based Baby Powder. This strategy was pursued despite emerging concerns about the product's safety.

Targeting specific demographics is a common marketing practice. However, when it involves a product with potential health risks, it raises ethical concerns. Companies must balance marketing strategies with the responsibility to provide accurate information about their products, especially when there are health implications.

Numerous lawsuits were filed against Johnson & Johnson, alleging that its Baby Powder and Shower to Shower products caused ovarian cancer or mesothelioma. A Reuters investigation further revealed that small amounts of asbestos had been found in the company’s talc products, information that was not disclosed to the public or regulators. This led to a significant public backlash and legal battles, with Johnson & Johnson facing thousands of lawsuits that eventually prompted it to discontinue talc-based baby powder .

5. L'Oréal

L'Oréal, a global leader in the cosmetics industry, is known for its extensive range of beauty and skincare products. The brand has established a strong presence worldwide, catering to a diverse consumer base with its innovative and quality products.

In 2014, L'Oréal faced scrutiny over its advertising claims for two of its skincare products: Lancôme Génifique and L’Oréal Paris Youth Code.

The company marketed these products as being "clinically proven" to "boost genes”, leading to "visibly younger skin in just seven days”. These bold health claims caught the FTC’s attention, which challenged their validity.

The beauty and skincare industry often sees exaggerated claims about product benefits. However, L'Oréal's case was significant owing to the specificity of the claims about genetic enhancement and rapid, visible results. Such assertions, especially when lacking scientific backing, can mislead consumers.

The FTC's investigation concluded that L'Oréal's claims were "false and unsubstantiated” . As a result, L'Oréal USA was barred from making future anti-aging claims without solid scientific evidence. While the company avoided a monetary fine, it faced the risk of paying up to $16,000 for each future violation.

Final Thoughts

The above examples are some of the most notorious cases of misleading advertising from some of the world’s biggest brands.

Each case study provided insight into how these brands faced legal and reputational challenges. From Volkswagen's emissions scandal to L'Oréal's exaggerated skincare claims, each case underscores the importance of honesty and transparency in advertising.

Misleading advertising can have far-reaching consequences, not just for consumers who may be swayed by false claims but also for the brands themselves. Legal repercussions, financial penalties, and loss of consumer trust are just some of the potential outcomes.

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What Is the Most Famous Misleading Advertising Example?

One of the most famous examples of misleading advertising is the Volkswagen emissions scandal. This case gained widespread attention owing to the scale of the deception and the prominence of the brand involved. Volkswagen admitted to using software in their diesel vehicles that cheated on emissions tests, misleading both the consumer and regulators.

Is Misleading Advertising Unethical?

Yes, misleading advertising is unethical because it deceives consumers and can lead to uninformed or harmful decisions. Ethical advertising should be transparent, truthful, and provide accurate information to help consumers make informed decisions.

What is the Punishment for Misleading Advertisements?

The punishment for misleading advertisements can include fines, legal settlements, and, in some cases, criminal charges. The severity of the punishment typically depends on the extent of the deception and the laws of the country where the advertisement was published.

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False Or Misleading Advertisements Under Consumer Protection Act 2019

Introduction.

Advertisement is a mode or a medium that is used to convey information regarding one’s product or service in a market. The motive behind an advertisement is to bring a product or a service circulating or bring a newly launched product or service to the market. Consumerism is a developing culture in a modern corporate world and advertisements play a crucial role in this system. Advertisement is nothing but a way to inform the public at large about the seller’s product or service or idea prevailing in the market. Such advertisement encourages the buyer or public to buy the product or service or the idea.

Advertisement is a way by which a manufacturer or a seller needs to inform consumers about the nature, quality, characteristics of a particular product or a service provided or offered by them in the market. But instead of giving mere information about the product, sometimes it acts as an art of disinformation by misleading the consumer about such a product, service, or idea offered.

False or Misleading Advertisement

Due to competitive pressure and in a hurdle race of success, advertisement has just become the mode of grabbing consumers’ attention with an intent to increase the supply and a yearly turnover of the companies nowadays. Such pressure is too high to think about what is wrong and what is right. To think about what is good or bad for a customer. At such a stage the manufacturer or the seller or the service provider can go to any extent to sell their products to customers. Where even a bad product is misled to be good and sold to the customers. This is done through advertisement which influences the consumers with fantastical images rather than the grim reality of the productive process of such products.

When does an advertisement become false or misleading?

An aim or motive behind advertising is to convey all the information regarding a particular product that is circulating in the market or newly launched in the market.

An advertisement is termed to be misleading when it misleads the consumer by misrepresenting their products or services and by making false statements regarding it.

For example:

When a shampoo company influences consumers that their products prevent hair fall or dandruff issues by just one wash then such statements are false and misleading ones.
When a product is of a soft drink which shows that one can get energy after consuming it, that one can face any danger, might even jump from a height and be survived is a dangerous and misleading one.
A facial cream which guarantees that whoever applies it will get a fair skin tone within 365 days is, therefore, a misleading advertisement.

Does M isleading Advertisement Amount to an Offence?

As the objective of an advertisement is to communicate a message or information regarding the particular product, service or idea, and therefore misleading it could cause harm to the consumer who gets influenced by such advertisement and consumes it.

Such misleading advertisements which cause harm to the consumer are offensive in nature. As the seller just with the intent to earn profit causes harm to the buyer and sometimes threatens its right to life. Misleading advertisement in fact violates several rights of a consumer be it right to be informed, right to choose, right to be protected against unsafe goods and services as well as unfair trade practices , which in turn makes it offensive by nature. And such misleading advertisements can be further objectionable in the court of law.

There are various laws and regulations which protect the consumer from such false statements and prohibit misleading advertisements. One of the laws which were enacted to provide protection and quick redressal for consumers was Consumer Protection Act, 2019. Which was passed in 1986 and a recent amendment to the act was done in 2019.

Misleading Advertisement under Consumer Protection Act, 2019

Consumer Protection Act, 2019 protects the basic rights of consumers and seeks a quick and fast redressal to the consumers. It protects the rights such as the right against the marketing of goods and services which are hazardous to life and property, right to be informed about the quality, quantity, potency, purity, standard and price of goods or services.

Consumer Protection Act, 2019 acts as an exception to the rule of caveat emptor and protects the consumer’s right from misrepresentation or false statements or misleading advertisements.

1. Defining “False Or Misleading Advertisements” Under Consumer Protection Act, 2019

Section 2(28), of the Consumer Protection Act, 2019, defines misleading advertisements in relation to any product or service. So according to this section misleading advertisement means an advertisement which falsely describes any such product or service; which gives a false guarantee upon the product or service by misleading upon its nature, substance, quality, the quantity, And deliberately conceals important information.

2. Authority Dealing With Misleading Advertisements Under Consumer Protection Act, 2019

Under Section 10 of the Act, The Central Consumer Protection Authority known as the Central Authority is being established in order to regulate the matters relating to misleading advertisements which violate the consumer’s rights.

Further, the District Collector has also been given power under Sction 16, of the Act, 2019, whereby on receiving complaints or by reference made by Central Authority may inquire or investigate into the complaints regarding false or misleading advertisements.

When a consumer’s right is violated by misleading him or making a false statement to him by a seller may complain about the same either in writing or in electronic mode to any one of the authorities be it The District Collector or The Central Authority.

Central Authority On Misleading Advertisement.

The established Central Consumer Protection Authority also known as Central Authority has inherited powers and functions under Section 18, of the Consumer Protection Act, 2019. Where acting upon those ensures that no false or misleading advertisement is done of any goods or services which violates the consumer’s rights.

The Central Authority has also been procured power under Section 19, of the Act, 2019, whereupon receiving a complaint or information or direction by the central government has the power to conduct an inquiry to see whether there exists Prima Facie case of false or misleading advertisement. If it is satisfied that there exists any Prima Facie case, it causes the District Collector to investigate such matters.

Further, under Section 21, Consumer Protection Act,2019, Central Authority has been given the power to issue directions and penalties against false or misleading advertisements.

The following are the powers given to the Central Authority under Section 21:

1. Under this section, if the central authority after investigation, finds that there is any false or misleading advertisement circulating or is being run in the market then it may issue an order or directions against any such trader, manufacturer, advertiser, endorser or a publisher, to discontinue such advertisement affecting the interest of consumer’s rights and modify the same in a manner prescribed in such order or directions issued.

2. Central Authority has the power to impose a penalty in respect of false or misleading advertisements under this section, which may be extended to Rs.10 lakhs.

3. Under this section central authority may by order prohibit the misleading advertisement of any product or service for a period which may extend to one year.

4. If the Central Authority after investigation finds that any person who published or is a party to the publication of the misleading advertisement, it may impose a penalty on such person which may extend to Rs. 10 Lakhs.

Exceptions:

1. As per Section 21, of the act, no endorser will be made liable if he exercises carefully to verify the accuracy of the claims made in the advertisement regarding his products or services.

2. No seller or manufacturer shall be liable if publication of such advertisement was made in the ordinary course of his business. This defense or exception is not applicable in cases where the seller or manufacturer or publisher or any person in such context, had received an order by the authority for withdrawal or modification of such advertisement.

Determination of penalty under Section 21.

While determining the penalty under Section 21, of the Consumer Protection Act, 2019, the consent authority must give regard to the following factors:

1. Firstly, the consent authority must see the population and the area impacted or affected by such an offence.

2. Secondly, the consent authority must see the frequency and duration of such an offence.

3. Thirdly, the consent authority must give regard to the vulnerability of the class of persons, who are likely to be adversely affected by such an offence.

4. Lastly, the consent authority shall give regard to the gross revenue from the sales effected by virtue of such offences.

If any person fails to comply with any orders or any directions issued by The Central Authority shall be punished with imprisonment which may extend to 6 months or with a fine which may extend to 20 Lakhs of Rs. or both.

If a person is aggrieved by any order passed by The Central Authority may appeal to The National Commission against the order within 30 days of receipt of such order.

The District Collector On Misleading Advertisement.

The District Collector after investigation finds any person publishing or endorsing a false or misleading advertisement may issue an order under Section 39 (1)(l), of the Act,2019, to correct the advertisement so as to neutralize the effect of such misleading advertisement.

Under Section 39(1)(l), of the Act, 2019, The District Collector may issue an order to provide adequate costs to the parties. The District Collector may under Section 39 (1)(l), cease or deceit from issuing any misleading advertisement.

3. Punishment For Misleading Advertisement Under Consumer Protection Act, 2019

Any person be it a seller or manufacturer or endorser or publisher if causes a false or misleading advertisement which causes harm to the interest of the consumers shall be punished under Section 89, of The Consumer Protection Act, 2019, with imprisonment which may extend to 2 years and with fine which may extend to Rs. 10 Lakhs.

Judicial Verdict On Misleading Advertisement

1. Francis Vadakkan Vs. The Propreitor, A-One Medicals &ors.

This is the recent case held on 22 nd January 2021. In this case, before the Kerala District Commission , the defendant is a manufacturer of a hair growth cream where it had published an advertisement where it claimed that with the use of their hair cream, the hair will grow 3 folds in 6 weeks. The complainant before the commission said that he was influenced by such advertisements and purchased the cream twice from A-one Medicals. He used it for 7 weeks, but his hair didn’t grow. So he approached the district Commission claiming Rs. 500,000 for loss, injury and mental agony.

Held : Commission found that the complainant was influenced by the advertisement to purchase the cream and used it according to the directions shown in the advertisement, but didn’t get the outcome which was guaranteed through advertisement. Therefore The Commission found a deficiency in the service and directed the defendant to compensate the complainant.

2. Horlicks Ltd. Vs. Zydus Wellness Products Ltd.

In this case, Horlicks which is one of the brands of Hindustan Unilever in the health food drinks available in India, which claims to have been clinically proven to make kids taller, stronger and sharper. On other hand, there is a complaint, which is a powdered milk energy drink owned by the brand Zydus Wellness Products Limited.

The Zydus aired an advertisement and declared that one cup of complaint was equivalent to two cups of Horlicks. A suit was filed in the Delhi High Court by Horlicks seeking a permanent injunction prohibiting Zydus Wellness Products from arising the disputed TVC.

Held: High court passed an interim order restraining the Zydus Company from arising its commercial, as such commercial advertisement was a misleading or misrepresenting one.

As there are various provisions incurred into the law against misleading advertisement. But in practical or in the bitter truth of reality it is not that effective. People with a greedy motive to earn more money or profit take away the interest or rights of consumers placing them in a pitch of just mere information of a product as the art of disinformation is growing day by day and thus can be witnessed through misleading advertisement.

1. https://cutscart.org/pdf/Study_on_the_Status_of_Law_Enforcement_for_Misleading_

Advertisements_in_India.pdf

2. http://www.thelexrepository.com/misleading-advertisement-horlicks-ltd-vs-zydus/

3. https://egazette.nic.in/WriteReadData/2019/210422.pdf

4. https://consumeraffairs.nic.in/sites/default/files/file-uploads/misleading-advertisements/misleading_advertiesment_and_consumer%20%281%29_0.pdf

This article has been written by Meghana Prashant Naik, 4th Year BA. LL.B student at V.M Salgaocar College Of Law

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Attorney general bonta secures settlement requiring liberty tax to stop deceptive advertising.

Press Release
Attorney General Bonta Secures Settlement Requiring Liberty …

OAKLAND — California Attorney General Rob Bonta today announced a settlement with Liberty Tax (Liberty) for running deceptive advertisements that misled consumers into thinking they were getting a free advance on their tax refund when they were actually taking out a high-cost loan. These actions violated California law and a 2009 injunction obtained by the California Department of Justice following trial, which required Liberty to clearly disclose in every refund loan advertisement that the product is a loan. Under today’s settlement, which the court will enter as an amended judgment, Liberty must pay $150,000 in civil penalties and comply with enhanced disclosure requirements about its loan products.

“Liberty tax deceived hardworking families, eager for their tax refunds, into falling for high-priced loans. This is illegal and as the People’s Attorney, I will not stand for it,” said Attorney General Bonta. “This settlement prevents Liberty Tax from lying and misleading their customers in the future and serves as a warning to other tax preparation servicers: My office is watching, and we are prepared to go to the mat for California consumers."

Liberty provides tax preparation services directly to consumers, and as part of that, sells refund anticipation loan products, which are short-term loans with applicable fees secured by a consumer’s anticipated tax refund.

In 2007, then Attorney General Brown sued Liberty, alleging that it deceptively advertised its refund anticipation loans by failing to clearly disclose that they were costly loans and not advances on consumers’ actual tax refunds. In 2009, Liberty was ordered to pay $1,161,699 in civil penalties and $135,866 in restitution and submit strong injunctive terms barring Liberty from deceptive advertising. Specifically, Liberty was ordered to clearly and “conspicuously” disclose in every refund loan advertisement that the product is a loan, and that fees and interest may apply.

Despite this court order, Liberty again began advertising “Easy Advance” and “Holiday Advance” refund anticipation loans online and in its stores without adequately disclosing that the products are loans. Today’s settlement imposes civil penalties for those violations and strengthens Liberty’s disclosure requirements. The new injunctive terms specifically define “conspicuous” in a number of advertising contexts, require Liberty to include the word “loan” in the name of each refund anticipation loan product, and require that Liberty use the full name of the loan product whenever the product is mentioned. This is intended to prevent marketing that might mislead consumers into thinking they are getting an advance on their tax refund when they are actually applying for a loan.

Attorney General Bonta is committed to standing up for Californians’ financial protection and their right to file taxes safely.

Last March, Attorney General Bonta issued a consumer alert with tips on preparing taxes safely, and Californians to file early, take actions to protect themselves online, and learn about free or low-cost tax filing opportunities. In May 2022, Attorney General Bonta, as part of a coalition of 51 attorneys general and with the Los Angeles City Attorney and Santa Clara County Counsel, announced a $141 million settlement against Intuit, resolving allegations that the California-based company deceptively advertised its “free” online TurboTax products. In May 2023, Attorney General Bonta announced that consumers who were tricked by TurboTax’s owner Intuit into paying for free tax services would begin receiving checks. Californians received more than $12.2 million, distributed to the more than 400,000 consumers who were eligible for a free tax filing program and were instead deceived into paying to file their federal tax return.

The proposed judgment, which remains subject to court approval, is available here .

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AG Henry Announces Multi-Million Dollar Settlement to Stop Major Mobile Device Carriers from Misleading Consumers with ‘Free’ Phones, ‘Unlimited’ Data

HARRISBURG — Attorney General Michelle Henry announced a $10.25 million, 50-jurisdiction settlement with several major mobile device service carriers regarding allegedly deceptive advertising practices, including claims of “unlimited” data plans and “free” phones.

The multi-jurisdictional settlement reached with AT&T, Verizon Wireless, Cricket, and T-Mobile requires the carriers to be truthful in future advertising, disclose all attached fees and agreements, and train customer service staff accordingly.

Pennsylvania will receive over $260,000 in costs and fees as part of the settlement.

“The demand and need for mobile devices are extraordinary, and Pennsylvanians deserve reliable information and the truth about costs when making important decisions that impact their budgets,” Attorney General Henry said. “For far too long, these major carriers have been advertising free devices that actually involve significant costs for the consumer.”

The terms of the settlements address misrepresentations in advertisements concerning: “unlimited” data advertisements, “free” phone offers, monetary incentives to “switch” wireless networks, and wireless carrier plan comparisons. The carriers allegedly neglected to clearly and conspicuously disclose the limitations, conditions, and differences in these offers.

The settlement, in the form of an Assurance of Voluntary Compliance, will, among other things, require the wireless carriers to:

Make all future advertisements and representations truthful, accurate and non-misleading;
Refer in marketing to “unlimited” mobile data plans only where such plans do not set any numerical limits on the quantity of data allowed during a billing cycle and clearly and conspicuously disclose any restrictions on data speed, as well as the triggers of such restrictions;
Offer to pay for consumers to “switch” carriers only where they clearly and conspicuously disclose the type of fees and amounts that they will pay consumers, the form and schedule that such payment will take and all material requirements that consumers must satisfy in order to qualify and receive such payment;
Offer wireless devices or services for “free” or similar terms only where they disclose clearly and conspicuously all material terms and conditions that the consumer must meet in order to receive the “free” devices or services;
Make offers to lease wireless devices only where it is made clear to the consumer that the consumer will be entering into a lease agreement;
Make representations that a consumer will save money by purchasing its products or services only where it has a reasonable basis to do so based on comparisons with the prices of comparable goods or services of other providers, or where any material differences between those goods or services are clearly and conspicuously disclosed; and
Appoint a dedicated employee to work with the attorneys general to address ordinary complaints filed by consumers;
Train its customer service representatives who speak with consumers to comply with these terms and implement and enforce a program to ensure compliance with these terms.

Settlements were filed with carrier companies: AT&T Mobility, LLC; Cricket Wireless, LLC; T-Mobile USA, Inc.; and Cellco Partnership — which does business as Verizon Wireless, and TracFone Wireless, Inc.

Please click here to view the states’ agreement with AT&T Mobility, LLC and Cricket Wireless, LLC.

Please click here to view the states’ agreement with T-Mobile USA, Inc.

Please click here to view the states’ agreement with Cellco Partnership, d/b/a Verizon Wireless, and TracFone Wireless, Inc.

Contact the Press Office

Mailing Address: PA Office of Attorney General / Press Office 16th Floor, Strawberry Square Harrisburg, PA 17120

Phone: 717-787-5211 Fax: 717-787-8242 Email: [email protected]

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Introduction

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The Science of Advertising

The Role of Consumer Psychology in Advertising

How Ads Manipulate and Persuade

Impact on Purchasing Habits

Creating Desire

Influencing Preferences

Guiding Decision-Making Processes

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Brand Perception

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Advancements in Technology

Changing Consumer Preferences

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AG Henry Announces Multi-Million Dollar Settlement to Stop Major Mobile Device Carriers from Misleading Consumers with ‘Free’ Phones, ‘Unlimited’ Data

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