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False & Deceptive Advertising - PowerPoint PPT Presentation

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False & Deceptive Advertising. Michelle Angeles Anil Bridgpal Sussan Oweifie Joseph Pattin. Identify the Problem. False Advertising –Advertising using statements in the form of unverified facts.

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False & Deceptive Advertising

Michelle Angeles

Anil Bridgpal

Sussan Oweifie

Joseph Pattin

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Identify the Problem

  • False Advertising –Advertising using statements in the form of unverified facts.

  • Deceptive Advertising – Advertising that is used to mislead consumers using implied false claims.

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False Advertising

  • Passing off goods or services as something they are not.

  • Blatant lies and deliberately untrue statements

  • Used to prevent the buyer from acting reasonably.

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Deceptive Advertising

  • Misleading claims

    • Explicitly stated

    • Implied verbally or visually

  • Omissions of the truth

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Camel Cigarettes

  • Advertising campaign named “Pleasure to Burn”

  • Sexually inviting image of a female.

  • Implies that a Camel cigarette is the key to developing an intimate relationship with picture women.

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Winston Cigarettes

  • This ad directly appeals to young females.

  • Shows a young women standing up for her self.

  • Message to teenage girls, is that “Smoking is a gutsy act of establishing independence”

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  • Advertised “No More Late Fees”

  • After 8 days, customer is charged full price to credit card.

  • If returned within 30 Days, customer is reimbursed the full price of movie.

  • Still charged a restocking fees

  • After 30 days, customer can not receive any reimbursement or return movie.

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  • Used to say “Provide immediate relief of headaches”

  • No published studies shows that any of its ingredients alleviate headache pain.

  • Sold 5 million tubes in past 11 months at $8 a piece. $40 million dollars.

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  • Many companies have tricked customers with rebates telling them how much they save after rebates but in fine prints they tell you that you have only limited time to get your money back or the just don’t give you your money back after filling out the rebates.

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Introductory Offers

Things not told directly to customers during advertisment

  • 1)Transaction fee for Cash Equivalents: 3% of each such cash advance (minimum $10).

  • 2)Late-payment fee: Based on your balance as of the day the fee is assessed- $15 if $100 or less; $29 if between $100.01 and $250; $39 if over $250.

  • 3)Over-the-credit-limit fee: Based on your balance as of the day the fee is assessed - $15 if $500 or less; $29 if between $500.01 and $1000; $39 if over $1000.

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  • For instance, a pharmaceutical company would be engaging in deceptive advertising if it advertised that consumers should buy a particular drug it manufactures because the drug has been approved by the U.S. Food and Drug Administration (FDA).

  • No drug can be sold in the U.S. unless it has been approved by FDA. Therefore the claim, while literally true, is deceptive because it creates the false impression that drugs produced by others may not have been approved by FDA.

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Unfinished Claims

  • When these claims are made, they might often leave you asking yourself questions about it.

  • “Be the first to know” –CNN advertisement slogan.

  • The first to know what?!

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Uniqueness Claims

  • These claims advertised the difference of the product amongst others, but this does not necessarily mean that the product is better than the rest.

  • “Nothing is better than Anadin” -Anadin Advertisement Slogan.

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Stating Facts

  • This basically claims nothing and shows no real advantage over any other product.

  • “Rheingold, the natural beer made from grains and water” – Rheingold Beer Advertisement Slogan.

  • All beers are made from these ingredients.

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“So What” Claims

  • These claims are almost like making factual statements, but it claims things that competing claims do not make or offer more of something in order to exceed the consumers normal expectations.

  • Tropicana has orange juices that now have extra calcium

  • Do you really need more calcium than what is already provided in orange juice?

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Vague Claims

  • A vague claim states things that are unclear, and not able to be verified.

  • “The best man can get” – Gillette advertisement slogan.

  • There is no way to verify this!!!

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Testimonial Claims

  • A lot of companies will use famous people to advertise their product hoping to get consumers to buy the product and to believe the claim is based on being a celebrities fan.

  • “You too can have a body like mine” – Charles Atlas advertisement slogan.

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Questionable Statistics

  • Using claims that have not been verified.

  • On the Centrum Website we find “Higher levels* of Vitamins B6 and B12 to support health”

  • Then at the bottom of the page : “*These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.”

  • They put this on the bottom of the page knowing that some consumers will not bother to go that far down on the page after skimming at the information that is given.

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Smarter Consumer Claims

  • Making the person think that they are better for choosing whatever is being claimed.

  • “Choosy moms choose Jiff” – Jiff advertisement slogan.

  • "The best tires in the world have Goodyear written all over them.“ -Goodyear tires advertising slogan.

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The end

  • Any Questions????