In a short essay, list and discuss four of the ways in which false and misleading advertising may take place.

Question

What will be an ideal response?

Answer 1

Choose any four from the following:
Going Out of Business Sale
When a retailer is having a “going out of business” sale, the retailer will raise the prices of the
remaining inventory and then “discount” them so it appears the consumer is able to buy the
products at a reduced rate. Or the firm may have continuous “going out of business” sales with
no intention of actually going out of business.
Manipulation of Product Size or Weight
Firms will attempt to misled consumers by presenting their products in different sizes or weights
than expected by consumers. For example, in the United States, consumers expect products to be
described in the traditional English measurement system. A manipulation can take place when
the product is only described in metric terms, and the opposite occurs in other parts of the world.
Firms can reduce the amount of the product without identifying the change to the consumers.
When the change does occur, the weight of the product could be presented in small type. For
example, a “pound” of coffee or bacon is now sold in 12-ounce packages instead of 16-ounce
packages. Another example is a product that displays “bad” ingredients as “only” having 120
calories per serving. The customer usually does not realize that the firm has calculated that
amount based on a serving size, which is less than the full amount in the package or container.
Use of Fillers
In food products, fillers can be used to increase the weight of the product. For example, liquids
are added to food products to increase the weight at a very low cost. Another example is
restaurants that do not offer free refills but then fill the glasses with ice. The ice costs less than
the drink, so the consumer is receiving less actual drink for the price.
Use of Vague or Undefinable Terms
Firms will use terms that are too vague or impossible to define to describe their products.
Whether it is healthy, organic, or natural, each firm could have its own interpretation of the meaning of the term. If there is no legal definition for the term, the firm is allowed to make its
own interpretation about how to describe its product. As a result, consumers do not have a
realistic method to compare these adjectives from one product to another if different companies
have different definitions of the term.
Misleading Pictures or Illustrations
A common way to mislead consumers is to have a picture on the product that does not represent
the product being sold. These misleading pictures can be on advertisements, websites, catalogs,
or the packaging of the product.
Bait and Switch
Another common misleading advertising practice is the technique called bait and switch. The
consumers are “baited” into coming into the store because of a “fantastic” offer that is usually a
high-demand scarce product priced below retail cost. The retailer does not have any intention of
selling the product that has been advertised. After the consumer has come into the store, the
practice moves from the bait to the switch. The consumer asks for the baited product and is told
that they are sold out, but there is another product that would better suit the needs of the
customer. The customer is now offered the new more expensive product, and the switch has
taken place.