Misleading Advertisement, Exploiting Consumer’s Trust
Advertisement is one of the crucial things to run a business. Nowadays, we can find many promotions in various forms. Those advertisements can be seen online or even offline. The presence of these advertisements is to help the consumers to purchase things they are looking for. However, besides the fact of these advertisements, which give ease for consumers to equip their needs, it can also be harmful to consumers since many traders are not honest. They use advertising as if only to enhance their brand and get more profit from it. Hence, there are a lot of misleading advertisements occurring today.
However, do you know what misleading advertisements are? Misrepresenting advertisements is misrepresenting the nature, characteristics, qualities, or geographic origin of goods, services, or commercial activities through promoting or advertising tools, such as Television, Radio, Newspapers, Banners, Posters, and many more. Consequently, it is impacting businesses, consumers, and employees.
The Effects of Misleading Advertisement from the Consumer Side
Misleading advertisements will lead the consumers to make uninformed decisions. They will make a poor decision that is not true about the specification of the products or services because the consumers are not notified of the truth about the products or services from the trader. Another impact that will occur is the consumers will use their precious money on something, which does not give them value in the end. It also cannot assist them in completing their needs or accomplish their problems.
The Effects of Misleading Advertisement from the Business Side
The certain effects that can be seen in businesses themselves when they share a misleading statement or advertisement are as follows:
- They will retaliate against your business
When your consumers are being lied to and realized of your advertisement, they will take revenge on you by spreading the negative news about your business, whether on social media or word of mouth. If it becomes worst, they do not hesitate to sue your business, which may cause your business to incur severe litigation costs in the future.
- Your business may be investigated.
The Federal Trade Commission or FTC may investigate your ads to ensure a violation of any laws occurred. The perspective and consumers’ claims, both explicit and implicit, will guide FTC if all the ads are fake. They will also evaluate any information that has been provided in your ads to make sure if the material has been included.
- Your business may get a cease and desist order.
You need to bring your ads up to FTC standards if you do not want to get a cease and desist order and you want to be allowed to rerun your ads. It is a consequence for your business to stop spreading misleading advertisements. The purpose is to correct your mistakes and add information that had been removed previously. Your business also has to inform your customers that they have bought your products that use falsification and put the disclaimers in future ads.
- Your business may lose your customer’s trust.
Another effect that you will face if you still spread the misleading ads is your customers’ trust will no longer be, and they will not be loyal anymore to your business. It means your business prospects are being reduced and untrustworthy anymore. These consequences can ruin your business or even make your brand get a negative reputation.
The Effects of Misleading Advertisement from the Employees Side
Misleading also can affect employees since they are part of the people who run your business. Once your employees are not involved in creating nor endorse ads, the consumers are still getting angry. Again, it is because your employees are on the front line and usually will bear the brunt of those consequences. Moreover, if they still stay, they may not be motivated to work hard and embrace their spirit.
Then, how do we know that the advertisement is misleading? First, there is some example of misleading advertisements as follows:
- The characteristics of the products or services are false to claim, e.g., ads show contrast to the original product.
- Misrepresentation of the price or way the cost is calculated, e.g., when the products turn out, it is not the same as advertised at sale prices.
- Misrepresentation of how the products or services are supplied, e.g., some sort of fee or charge through delivery. However, it is in contrast to the ads.
- Misrepresentation of any aspects of the advertisement, e.g., actually, a business is not presented as a trade association member.
The ads create a false impression about the products or services, even if the information is correct.
Those all are examples of misleading advertisements. Hopefully, we can be aware of the misleading information in advertisements and share positive and accurate information to refrain people get deceived by the ads.
Written by: Farrel and Aulia
References
https://consumeraffairs.nic.in/more/misleading-advertisements
https://smallbusiness.chron.com/negative-effects-false-advertising-25679.html
https://www.ccpc.ie/consumers/shopping/misleading-advertising/
https://www.nytimes.com/2017/07/30/business/media/consumers-may-be-more-trusting-of-ads-than-marketers-think.html
https://www.forbes.com/sites/mariansalzman/2020/07/24/calling-out-fake-news/?sh=4e15f1d14b97
