In: Economics
Using the internet, research a consumer law issue. This can be a deceptive advertising case, false advertising claim, credit protection case, or some other consumer law case. Use some of the terminology from the textbook to help you search. Briefly describe the case and the legal issue. Determine if any ethical issues are raised in this case and explain why they are concerning.
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False advertisement may be environmental(green )claims.This claim may be seen in small household products like nappies,toilet papers,cleaners ,detergents etc.In such products claims are made about environmental sustainability,recycling,its effect on animals,effect on natural environment etc. For eg in these products we find labelled words like 'environment friendly' 'fully recycled' etc.When consumers go to purchase a product ,they consider whether the product is water or energy efficient.For eg compostable plastic is a misleading claim.PLA which is a corn based plastic gained a lot of importance in 2006 that it is environment friendly which is false . It can only be degradable in a special machine, otherwise it is a trash.
Businesses should not mislead consumers and if they do so they face serious penalty.Firms which make environmental claims should make sure that their products are scientific and properly substantiated.The Australian consumer law from January 1st 2011 have laws to give legal protection to consumers related to advertising.Since consumers consider whatever is written on the product as truthful and purchases the product , any false attempt to convince the consumer will be penalised. Products which claim environment friendly but are not have gone to the court.
It is considered unethical to advertise something the product does not have.The Australian consumer law has clearly stated that to advertise that a product is environment friendly it is considered unethical to state sponsorship,approval , benefits, characteristics etc that the product does not have.