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In: Accounting

Use the internet to search an example of a misleading advertisement in the media (e.g., Internet,...

Use the internet to search an example of a misleading advertisement in the media (e.g., Internet, television, radio, newspapers, etc.). Next, identify the premises and conclusions in the advertisement. What makes it misleading?

Note: All students are required to post a minimum of two (2) posts per online discussion thread. Students must have one (1) original post and a minimum of one (1) other post per discussion thread.

Solutions

Expert Solution

EXPLANATION -- Here is the example of a misleading advertisement by Red Bull --

Energy drinks and Caffeinated drinks company Red Bull was taken into class action lawsuit in 2014 which finally settled for $13 Million. Under this lawsuit company was accused of false and misleading advertisement claim and finally it had to pay out more than $13 Million.

PREMISES --

For past two decades Red Bull was having slogan "Red Bull gives you wings". Now in the actual and figurative sense it turns out Red bull does not gives you wings. It marketing that the drink can improve concentration and reaction speeds, but the plaintiff in the case said these claims are false and lack scientific support. While the suit did not allege that plaintiffs were disappointed that they didn't grow actualy wings, it does claim that Red Bull relies a lot on terms like "wings" and "boost" to give consumers the impression that the drink gives people some sort of physical lift or enhancement.

The suit was brought about by a number of Red Bull drinkers, one of which claimed he had been drinking the product since 2002 but had seen no improvement in his athletic performance.

The suit says of Red Bull's marketing:-

"Such deceptive conduct and practices mean that [Red Bull's] advertising and marketing is not just 'puffery,' but is instead deceptive and fraudulent and is therefore actionable."

CONCLUSION --

If the proposed settlement is passed by the U.S District Court of the Souther District of New York where the case was brought, Red Bull will be required to pay $6.5 million into a settlement fund within a week.

According to the complainant, the Austria-based firm deliberately misled unsuspecting customers to spend millions of pounds on the premium drink in the hope of gaining an edge on their competitors.

And fearful of a costly and time-consuming trial, Red Bull was forced to settle the case out of court, pledging to refund $10 to any US customer who bought the drink since 2002 and agreeing to amend future advertising.

The settlement states that Red Bull will reimburse customers disappointed the energy drink hasn't lived up to their expectations with either a check for $10 or a voucher for $15 worth of Red Bull products. This could prove costly as the class action suit covers the millions of people who have bought at least one can of Red Bull over the past 10 years.

Red Bull released this statement following the settlement:-

"Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability."

REFERENCES --

https://www.telegraph.co.uk/news/worldnews/northamerica/usa/11155731/13m-lawsuit-proves-Red-Bull-doesnt-give-you-wings.html

https://www.businessinsider.in/Red-Bull-Will-Pay-10-To-Customers-Disappointed-The-Drink-Didnt-Actually-Give-Them-Wings/articleshow/44704264.cms


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