Docstoc

False Advertising

Document Sample
False Advertising Powered By Docstoc
					False Advertising
                                Bait and Switch

•   Offering one product or services and selling another.

•   The real purpose of the bait and switch scheme is to lure consumers into a business
    establishment with attractive offers and then sell them other more expensive products.

•   Some bait and switch sellers have been known to go as far as to penalize
    salespersons who actually sell the advertised specials to consumers.
            False Price Comparison

• Legitimate advertisers often compare a sale price to a "regular" price.



• Unscrupulous advertisers use falsely inflated "regular" prices in order
  to deceive consumers into thinking that they are getting a bargain.
                   Going Out of Business Sales


•   Some retail sales establishments falsely advertise that they are going out of business to deceive
    consumers into thinking they will be able to buy products at considerable savings.
•   Advertised as: "bankruptcy sales," "lost our lease," building coming down," "forced out of business," "final
    days," "liquidation sales," "fire sales," "quitting business," or similar names.
•   In most cases, businesses wanting to advertise going out of business sales must first obtain a permit from
    the sheriff or the city .
                  Buy One Get One Free


• Offer is made in an advertisement, the price of the product you pay
  for is inflated to cover the cost of the "free" product. In other cases,
  the "free" product is of low quality.
                      Misrepresentations

• Unscrupulous advertisers often intentionally misrepresent the
  characteristics, origin, uses, benefits, or qualities of products offered
  for sale.

• Used cars are advertised as "one owner" cars when they have had
  several owners.

• ”Late model" TV sets turn out to be 10 years old.

• Watches are advertised as "railroad watches" when they are in fact
  ordinary watches of relatively low quality.
                                       DO'S AND DON'TS


•      * Do shop around to make your own price         •   * Don't allow yourself to be "switched" from a
    comparisons                                            low-priced "bait" product to a more expensive
•      * Do whenever possible check out all                alternative
    advertising claims before making purchases
•      * Do ask for a "rain check" when advertised
    products are not available for sale
•      * Do ask to see a permit for a going-out-of
    business sale before buying at such sales
•      * Do be on your guard when you see
    advertisements offering anything "free”
•      * Do report all cases of false advertising to
    the Department of Consumer Affairs
AUTOMOBILE
REPAIR FRAUD
              The Five-O-'Clock Surprise

• Consumers who do not get a written estimate are often surprised by
  unanticipated repair charges when they pick up their cars.

• Repair shops that practice the "Five O'clock Surprise" give very
  moderate quotes and then raise the final charges considerably,
  claiming that they found additional problems once they began to
  work on the car.
                       Maintenance
• Some repair shops advertise check-ups or preventive maintenance
  service for very reasonable rates.

• Unethical shops use these maintenance specials to deceive
  consumers into authorizing expensive, and often unneeded, repairs.
                    Highway Bandits

• Also known at "50%" operate in service stations along major
  highways.
• Prey on motorists stopping for gasoline.
   – They often spray oil on the wheels of the car and then claim that
     the wheel bearings or other parts are leaking.
   – They sometimes puncture tires or cut water hoses and then show
     the unfortunate motorists the damages.
DO'S AND DON'TS FOR AUTO REPAIRS

•     * Do check a repair shop out with the    •   * Don't forget to ask for old replaced
    Better Business Bureau before taking           parts
    your car there

                                               •     * Don't tell a repair shop what repairs
•     * Do ask for a written-estimate before
    authorizing repairs                            they should do unless you are absolutely
                                                   sure that the repairs are needed
•      * Do get several estimates from
    different repair shops for major repair
    jobs NOTE: YOU MAY HAVE TO PAY
    FOR THE ESTIMATES, SO FIRST
    DETERMINE HOW MUCH

•     * Do ask if repairs are guaranteed and
    get all guarantees in writing

•     * Do look for a repair shop that has
    certified mechanics
    Protections against False Advertising Federal
                         Law

•   The Federal Trade Commission (FTC) is the main federal agency that monitors false advertising
    practices.
•   * The FTC can issue a cease-and-desist order and bring a civil lawsuit on behalf of people  who have
    been harmed

•     * The FTC may seek a court injunction to stop a false advertisement

•     * The FTC may require an advertiser to run corrective advertisements that state the
           correct facts and admit that an earlier advertisement was deceptive
      Better Business Bureau
• http://www.bbb.org/

• Search for accredited businesses.

• File complaints against companies.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:8/4/2012
language:English
pages:14