In: Operations Management
Identify a recent example of a corporation accused of false or deceitful advertising. How did it justify the claims made in its ad? Do you agree or disagree with the claims? Explain.
One of a recent example of a corporation accused of false or deceitful advertising is Volkswagen, a car manufacturing company which had ad campaign of “clean diesel” cars with low-emission and environmentally friendly.
In a lawsuit Volkswagen has fined for billions for false advertising and violating the Clean Air Act. They are charged to installing a device into some models of their car to cheat emissions tests and violated the law.
Volkswagen had nothing very convincing to justify the claims made in its ad as there are proofs of their cheating but they had tried to make damage control by calling back the cars from consumers and giving them free services to modify it to comply with emissions standards of the country. Also they have agreed to invest money on research and development into zero emission vehicles, clean-air initiatives and the technology development.
In my opinion Volkswagen has cheated their customers and violated the law related to environment. Their actions are not sufficient to the inconveniences caused to their customers and damages made to environment.