I’m studying for my Business class and don’t understand how to answer this. Can you help me study?
Our focus this week is on liability for deception when it comes to products. For example, one of the cases in the chapter reading is about when Listerine marketed itself as preventing colds. In actuality, it did not help to prevent colds and the Federal Trade Commission ordered it to stop marketing itself that way to the public. Why?Because consumers were buying it because they believed it would prevent colds and anytime you try to fool consumers into buying your product using false and misleading advertising – you have committed a violation of an EXPRESSED warranty to the public.
Be sure that your example answer for the discussion question meets the criteria and is not just an opinion or “bad taste” advertisement. See below from the chapter reading about expressed warranties:
An express warranty as provided in the Uniform Commercial Code (UCC) is an express promise (oral or written) by the seller as to the quality, abilities, or performance of a product. The seller need not use the words promise or guarantee to make an express warranty. A seller makes a warranty by displaying a sample or model or giving a description of the goods. Promises of how the goods will perform are also express warranties.
The Federal Trade Commission (FTC) is tasked with preventing “unfair and deceptive trade practices.” It regulates whenever the public is being deceived, regardless of any effects on competition. The FTC considers:
- Content and accuracy of an advertisement
- Performance claims of an advertisement
- Celebrity endorsements
- Bait and Switch tactics
- Product comparisons
A great website to see cases and find examples per the FTC – https://www.ftc.gov/enforcement/cases-proceedings and of course our legal resource tool, Nexis-Uni.
