Question

I need examples of

1. falsely stating the source of goods or services.

2.Advertising goods with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.

3.Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.

Answer 1

Types of false advertising

• Hidden fees - These are extra fees not specified in the advertised price, such as activation fees for cell phones or pre-delivery inspection charges on a new car.

• "Going out of business" sales - This entails raising the prices from merchandise that was already on sale and then marking them down.

• Misusing the word "free" - When the sale is "Buy one. Get one free," the second item is not really free because you have to buy the first one.

• Changing the measurement units and standards - An example is changing from pounds and ounces to metric to hide the fact that the product was downsized.

• Fillers - Food often has fillers to increase its weight, like meat injected with broth or brine.

• Misuse of terms - This includes the terms "light" and "natural"

• Incomplete comparison - An example is saying a product is better than another but not explaining in what way it is better.

• Inconsistent comparison - This includes comparing a product to only the competitors it can beat.

• Misleading illustrations - An example is showing the product in a picture as being bigger than it actually is.

• Coloring - This would include putting yellow oranges in a red mesh bag to make them appear riper than they are.

• Angel dusting - This is adding a very small amount of something beneficial so it can be labeled as such, like a cereal that contains 10 essential vitamins and the actual amount of them is less than one percent of the Recommended Dietary Allowance.

• Bait and switch - This is advertising one product and substituting a similar product at a higher price, claiming the advertised product is unavailable or sold out.

• Acceptance by default - This refers to a contract where the consumer must opt out of a service or feature and if they don't, they will be charged for it.

Examples of false advertising

• Activia yogurt - Dannon stated that its yogurt had nutritional benefits other yogurts didn't. They had to pay $45 million in a class action settlement.

• Splenda - Ads say it is made from sugar; but, that is not the case. It is made of highly-processed chemical compounds.

• New Balance - One of their sneakers has been sold with claims to help consumers burn calories. No studies confirmed this and the shoe turned out to be an injury hazard.

• Taco Bell seasoned beef - It was not really seasoned, but had oat filler. This tricked consumers into thinking it had a higher grade of beef.

• Definity eye cream - An Olay ad showed the model Twiggy wrinkle-free and the ads were retouched.

• Hyundai and KIA - These companies overstated the horsepower of their vehicles, as much as 9.6 percent.

• Airborne - It claimed to ward off germs to prevent the flu and colds, but no studies backed it up. Airborne had to pay $23.3 million in the class-action lawsuit and $7 million settlement later.

• Kashi - The Company claimed their products are All Natural but they are full of synthetic and unnaturally processed ingredients and actually some that are considered hazardous.