BUISENESS MANAGEMENT
ADVERTISING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher Price
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Misleads consumers
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Wasteful consumption
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Creates monopoly
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Detailed explanation-1: -In addition to the prohibition against misleading or deceptive conduct, it is unlawful for a business to make false or misleading claims about goods or services. A misrepresentation is a claim or statement that is false or misleading made by one party to another.
Detailed explanation-2: -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.
Detailed explanation-3: -Courts have found false and misleading representations in these cases-a: manufacturer sold socks, which were not pure cotton, labelled as ‘pure cotton’ retailer placed a label on garments showing a sale price and a higher, crossed-out price. However, the garments had never sold for the higher price.