Types of Promotional Deceptions
The various types of deception in the promotion are described as below:
Bait-and-Switch – In the bait-and-switch strategy, an advertiser claims the price or product availability while never intending to sell it or to sells it at a much higher price. Then, when customers make a purchase decision by responding to the advertisement, they exploit their interest by selling a product at a higher cost or selling a different product.
Incorrect Photos or Illustrations – At times, images used in an advert make a product look more appealing to the customers than real. For example, a grocery store uses software for photo enhancement to change the actual appearance of the groceries by inducing customers into making a purchase.
Deceptive Pricing – Another common type of deceptive promotion is any advertisement that conveys false or incorrect information regarding the price of a product. To illustrate, a clothing store may advertise that a dress is on sale at a discounted price when the promoted shirt was never sold at a higher price in the first place.
False Claims – A company makes false claims that the product will provide certain benefits to the consumers that have never been proven officially. To illustrate, a healthcare company runs an online customer promotional campaign that the all-natural nutritional supplement helps in curing cancer. However, there is no medical data available to validate the claim. As a result, a court later orders to stop promoting the product based on false claims.
Inconsistent Comparisons – When there is a biased comparative advertising with a competitor’s product, and only focusing on superior areas and leaving out the factual information about the other product that is better in many ways. In doing so, one company obtains an unjustified marketing advantage over other companies. A good example of inconsistent comparisons is how vehicle manufacturers promote the vehicles against comparable models and make.
Mechanism of False Promotional Laws
When it comes to promotion, state and federal false promotional laws safeguard customers by requiring companies to advertise in the following ways:
Provide accurate product descriptions by including pictures and illustrations.
Offer fair treatment to all competitors.
Be well-equipped to stock an abundant supply of the promoted products.
Ensure the pricing is honest and upfront.
Be careful when using the words such as ‘free’ or ‘sale.’
False promotional cases are generally heard in civil court. If found guilty of violating deceptive advertising laws, a company could receive a court order to pay fines, notify customers about incorrect information, and possibly reimburse the misinformed customers.
Concluding Note
In a nutshell, the effects of deceptive promotion on customers are perhaps the worst aspect of it. The customers will end up making uninformed buying decisions due to contradicting assumptions about a product/service. Another impact of misleading advert is on the business itself. As disseminating offalse/incorrect information may result in customer retaliation and cause them to spread negative stories about a company through word-of-mouth or social channels. The customer may also sue the company for damages incurring hefty litigation costs to the businesses later on. Lastly, deceptive adverts could also lead to industry-wide damage. When a company spends on making attractive but false claims about a product, the competitor might also invest in improper advertising instead of innovation.
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