Question

In: Economics

Aimee now seeks advice to determine what can be done to stop Bianca’s Strawberry Jam making false claims about its jam.

The brand Bianca’s Strawberry Jam LTD dominates the Australian retail spread market and sells its jam in all major supermarkets and retailers. It has 45% of the total Australian jam spread market. It advertises through many channels including TV, radio and the internet. Its tag line is: “Bianca’s Strawberry Jam uses 100% natural ingredients including Australian farm grown strawberries: It will make your day”. Aimee’s Strawberry Jam is a small batch jam business operating as a sole trader and producer in rural Victoria sourcing its product from local farmers in the Victorian high country. Aimee’s Strawberry Jam has a loyal following and growing customer base. Not only do they sell their jam at the local farmers’ market in Mansfield, but they also have a growing online business selling genuine Australian jam around the globe. Aimee’s Strawberry Jam has just won the prestigious quality jam in Australia award. Demand for Aimee’s Strawberry Jam is rising fast. Vo, a food technician and friend of Aimee’s recently tasted a sample of Bianca’s Strawberry Jam to compare it to Aimee’s own product. Vo explains to Aimee “no way that stuff is pure, natural jam, they put something else in there: and it isn’t natural strawberries”. She encourages Aimee to send a sample to the CSRIO (Commonwealth Scientific and Industrial Research Organisation) in Canberra to have it tested. The test results show that Bianca’s Strawberry Jam only contains about 60% strawberries. The remaining 40% is made of cheap imported syrup.

Aimee now seeks advice to determine what can be done to stop Bianca’s Strawberry Jam making false claims about its jam.

Solutions

Expert Solution

Ans. In order to stop Bianca making false claim about the jam , she should be talked . Aimee shall talk to her and tell her that the results of test show that the jam made by her is only 60% strawberry and the rest is syrup so she shall stop making false advertisements in order to make fool of people and customers, if bianca listens to she it is ok , but if doesnot then Aimee should reach the consumer court and shall complain the same because the jam she is selling is not good for health if contained syrup and even she is giving false ads which means she is just making fool of consumers and violating their right of knowing exactly what the product is made up of, but she is playing games and being dishonest to the consumer which is legally wrong and shall be looked upon for sure.


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