Business Law: False Advertising It is ethically and legally important to remain truthful in advertising. Companies are not allowed to attract customers with false advertisement. Legally speaking, a company can come under attack for promising something it doesn't mean to deliver or changing the terms of delivery of those promises when customer makes a demand. But several times, businesses especially small business owners might use bait and switch advertising tactic to attract customer and this can give rise to legal issues. Bait and switch advertisement is seriously forbidden by law and consumers are protected against such actions through various FTC guidelines. The terms of the advertisement are binding according to FTC rules and guidelines. FTC clearly states that when a product is advertised, it must be present at all mentioned outlets at the price mentioned in the advertisement. A person would be accused of false advertising if the product is no longer available when customer walks in to purchase it, or when the seller tries to sell it at a higher price or when another product is offered in its place. All these actions would be considered bait and switch. FTC clearly defines bait and switch advertising as, "…an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised."...
The terms of advertisement are binding because the law clearly states that, "No statement or illustration should be used in any advertisement which creates a false impression of the grade, quality, make, value, currency of model, size, color, usability, or origin of the product offered, or which may otherwise misrepresent the product in such a manner that later, on disclosure of the true facts, the purchaser may be switched from the advertised product to another." [Sec 238.2]
Deceptive Marketing Unethical Practices in Marketing: Deceptive Marketing Business ethics requires that business organizations should act in a manner that is morally and ethically upright. One of the areas where ethical behavior is crucial is marketing. Marketing is one of the major functions within an organization. It is basically concerned with communicating and reaching out to customers in an attempt to promote products, services, and/or brands. Nonetheless, unethical behavior in marketing is
Employees are being rewarded for their honesty, and managers continue to encourage communication between supervisors and subordinates. Management is also looking for ways to encourage employees to tell the truth about other employees who may be involved in something dishonest or illegal (Jones, 1982). Not all employees will take advantage of this, of course, because some still believe that they will face punishment for being a 'whistle-blower', but there
Capitalism does force us sometimes to make decisions in a context narrower than we need in order to make them morally, socially, environmentally (Rolston, 1988, p. 324). Rolston points to several cases of corporate myopia that was changed as customers and potential customers made their views known and demonstrated that hurting customers would harm shareholders as well. He points to the DDT scare in the early 1960s which led to
Labeling white collar crime is a mystery. A shared misapprehension of white collar crime is that, like pornography, it is hard to describe, however a lot of people would recognize it when they understood it. The only thing concerning white collar crime is that no profession is excused or unaffected by it (Geis, 2002). A person just needs to pick up the paper, observe the news, or go on
Organization Behavior Ethics in Marketing Ethics of Marketing Ethics in Marketing In order to realize themselves as socially responsible corporate entities, business organizations have to maintain a sound ethical track record in every aspect of their business (Arnold 2009). They have to formulate their business policies and strategies in such a fashion that no societal values are exploited and no human being is harmed in any way (Crane & Matten 2007). It is essential
Employee Privacy Torts Issues relating to employee privacy have been at the forefront of businesses for many years. This has been fuelled by the dynamic workplace which changes constantly and also by employees and employers being more litigation-conscious. Technology has also spurred on employee privacy issues with e-mail and the internet being related to heightened concerns about vulnerability of employers to litigation. Many employers have thus exacerbated their concerns relating to
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