ipl-logo

Nader Rader's Guideline Against Deceptive Advertising

1819 Words8 Pages

With the rapid growth of the retail industry came the increase of discount advertising marketing strategies. Discount marketing strategies, often referred to as anchor pricing, rely heavily on the psyche of the consumer. The theory explains the “human tendency to cast disproportionate weight on the first piece of information [you] receive when making subsequent decisions” (Friedman, 934). The initial information is viewed as the “anchor”, and in discount advertising the “anchor” is the original price. Companies anchor a sale price to a “former price” to drive consumers to purchase. With the overabundance of retailers, advertisements, and marketing touch points the profitable strategy has flourished. The success of the marketing strategy has prevailed but the regulation of fictitious tactics has diminished. Are consumers certain their products were ever sold at the “former price”? The Federal Trade Commission (FTC) developed the Guideline Against Deceptive Advertising in 1958. These guidelines distinguish what constitutes a price comparison, former price, and a “true bargain”. Section 233.1 of the Guideline Against Deceptive Advertising explains lawful former-price comparisons. The guide defines a …show more content…

The influence of the students was so strong President Nixon asked the American Bar Association to analyze the FTC and suggest changes. In the 1969 report, the act of “deceptive-pricing enforcement” by the FTC was concluded to “waste resources”. Members of the committee did not oppose the theory. Once President Nixon received the report “he charged the FTC to initiate a new era of vigorous action to protect the consumer” (Friedman, 942). The committee was totally restructured and their primary focus shifted gears. From this day on the federal government seized the regulation of fictitious pricing. Although, states still continue to see cases of false-pricing

Show More
Related

Virginia State Board Of Pharmacy V Us Consumer Council Case Study

1014 Words | 5 Pages

Although the advertisements of prescription medicines prices have a purely economic purpose, they can also promote valuable information for consumers. As a result, the First Amendment protects this commercial information. Court’s Reasoning (Mr. Justice Blackmun for 7-1

Read More

Aspca Dog Commercial Analysis

1119 Words | 5 Pages

But many successful marketers regularly employ psychology in appealing to consumers. Smart, skillful, honest markets use psychology legally, ethically, and respectfully to attract and engage consumers, and compel them to buy” (Rosenthal, 1). There are five psychological tactics marketers use to influence consumer behavior, those five are: run emotional ideas, highlight your flaws, reposition your competition, promote exclusivity, and introduce fear, uncertainty, and doubt. “ Run Emotional” discusses how there have been “studies that show emotional and psychological appeals to resonate more with consumers than feature and functional appeals. Demonstrating how that new computer will improve a potential customer’s life tends to have more influence rather than explaining how it works: (Rosenthal, 4).

Read More

Advertising's Fifteen Basic Appeals Summary

1890 Words | 8 Pages

Advertising has been around for decades and has been the center point for buyers by different subjects peaking different audience’s interests. Advertisers make attempts to strengthen the implied and unequivocal messages in trying to manipulate consumers’ decisions. Jib Fowles wrote an article called “Advertising’s Fifteen Basic Appeals,” explaining where he got his ideas about the appeals, from studying interviews by Henry A. Murray. Fowles gives details and examples on how each appeal is used and how advertisements can “form people’s deep-lying desires, and picturing states of being that individuals privately yearn for” (552). The minds of human beings can be influenced by many basic needs for example, the need for sex, affiliation, nurture,

Read More

Magnasoles Use Pseudoscientific Diction In The Onion

341 Words | 2 Pages

MagnaSoles The mock press release from The Onion imitates the techniques used by marketers to convince consumers to purchase ineffective products. The article carefully demonstrates the degree of manipulation and persuasion used in advertisements today through the use of a satirical tone. The hyperbolized depiction of advertisements through false scientific sounding literature, faulty testimonials, and faulty logic highlights the naïveté of consumers towards advertisements.

Read More

Analysis Of The 11 Ways That Consumers Are Hopeless At Math By Derrick Thompson

671 Words | 3 Pages

In the article, "The 11 Ways That Consumers Are Hopeless at Math", Derrick Thompson discusses about everyday consumer retail psychology. More specifically, how everyday consumers get fooled or tricked by businesses to get us to spend more or receive less leading to an increase in their profit margin. The author mainly talks about how everyday consumers are fooled due to the cold fact that they do not know the actual buying cost of the products or services. Branding products and advertising both increases the retail price of the product or service, therefore the consumer do not know whats the actual value of it. At the end of the article, the author claims, "the shopping brain uses only what is knowable: visual clues, triggered emotions, comparisons,

Read More

Summary Of The Hard Sell: Advertising In America By Bill Bryson

222 Words | 1 Pages

Bill Bryson’s article "The Hard Sell: Advertising in America" was fascinating to me. I was really surprised by all the great examples he used to follow up with his statements. Bryson points out sound many factors in advertising that us, the consumers, can be so blind to. Bryson states,” If we fall for such commercial manipulation, we have no one to blame but ourselves” (67). And he is correct, we as consumers always complain about advertising manipulation, yet large companies are still profitable.

Read More

Ethical Differences Between American Express And Unfair Competition

585 Words | 3 Pages

Unfair competition involves causing confusion among consumers to buy into one’s unfair trade practices. In the American Express’s case, the court found that the company’s restraints had an actual anticompetitive effect on inter-brand competition. Further, American Express allowed merchants to steer customers to more expensive cards and debit cards rather than the ones that cost them less money on a transaction-by-transaction basis. However, unfair competition does not entail the economic harms involving monopolies and antitrust legislation since the act varies with the context of the business, the action being examined, as well as the facts of the individual case.

Read More

Consumer Promotions Used By Bath And Body Works

1524 Words | 7 Pages

In a world in which technology allows a consumer to search the web and at the click of a finger have a product delivered to their door, it is important that business remain competitive and offer its consumers the best product at the best price. The current economy no longer affords the average consumer to purchase products or services without any thought to comparison shopping. Therefore it will be important that businesses offer consumers promotions to lure consumers to their products. Whether that promotion is in the way of coupons, rebates or simply a sample product, consumers now want more products without spending more money.

Read More

Enforcement Policy Statement On Deceptively Formatted Advertising

193 Words | 1 Pages

Native advertising doesn’t have very long history, but ever since it’s occurrence, its transparency is a controversial topic. It is walking on a fine line between reader’s trust and revenue streams. Native ads are deceiving the audience and making them believe that an ad is in fact editorial content. Due to those reasons in 2015 FTW set guidelines for publishers and advertisers to follow. Among those recommendations there is the Enforcement Policy Statement on Deceptively Formatted Advertisements which states that an ad is considered deceptive: "if it materially misleads consumers about the ad's commercial nature, including through any implied or express representation that it comes from a party other than the sponsoring advertiser."

Read More

The Girl Who Was Plugged In Essay

1498 Words | 6 Pages

The character Mr. Cantle asks a question: "Now tell me, Delphi, why do people buy one product rather than another?" (Tiptree, pages 146). This question acknowledges that despite changes in the advertising landscape, the fundamental aspect of consumer behavior remains relevant. It highlights the underlying motivations behind consumer choices and purchasing decisions. This also has a major impact on consumption patterns.

Read More

Alexsandro Palombo: What Is False Advertising Ethical?

865 Words | 4 Pages

Throughout the years as our culture has become more and more saturated in media, and advertisers have taken advantage of us. Advertising at it’s core is getting the word out about your product and showing people that they need it and why they have to have it. Recently however, advertisers have figured out how to get people to buy things. They will pull on your heartstrings, and make you think that if you don’t have that one product that they are selling, that you have to have it immediately. One of the first examples that came to mind when thinking of false advertising is photo-shopping celebrities to make a point, for something that they did not give their approval for.

Read More

• What Is The Four Primary Reasons Why Not To Buy So Many Discounts?

488 Words | 2 Pages

Functional discounts takes place between a manufacturer and a reseller. The resellers get that discount because they buy in large quantity, and at the end they get to charge customers full price. In other words, they get to save and make profit at the same time. Manufacturers also have to prevent price discrimination based on research (Blair, 2015) stated that, back in 1988 Congress adopted the Robinson-Patman Act to prohibit price discrimination that may lead to competitive injury. Boise Cascade was the first known manufacturer who violated the section 2 of Robinson-Patman Act.

Read More

Advertisement Fallacies Persuasion

626 Words | 3 Pages

Benjamin Self? Mrs.?Bonea? AP English-7? 23 of January 2017?

Read More

Logical Fallacies In Advertising

810 Words | 4 Pages

Advertisements are everywhere, on television, radio, social media, billboards, magazines, and even on yearbooks. On the other hand, would it not be nice if every advertisement an individual saw, read, or heard were actually true? Like using Axe body spray really did attract women or eating Snickers truly made one satisfied in seconds? Yet, most of the time the advertisements that seem too good to be true, actually are. In fact, countless of ads are only slightly true and instead filled with many common errors in reasoning, known as logical fallacies, a sneaky marketing technique companies utilize to trick a consumer into giving them their undivided attention and money.

Read More

Essay On Misleading Advertising

979 Words | 4 Pages

Introduction “The term ‘misleading advertisements, is an unlawful action taken by an advertiser, producer, dealer or manufacturer of a specific good or service to erroneously promote their product. Misleading advertising targets to convince customers into buying a product through the conveyance of deceiving or misleading articulations and statements. Misleading advertising is regarded as illegal in the United States and many other countries because the customer is given the indisputable and natural right to be aware and know of what product or service they are buying. As an outcome of this privilege, the consumer base is honored ‘truth in labeling’, which is an exact and reasonable conveyance of essential data to a forthcoming customer.”

Read More

More about Nader Rader's Guideline Against Deceptive Advertising

Related Topics

Open Document