Deceptive Advertisement

And Business Ethics

Question # 3
 What is Deceptive Advertising? Identify four
advertisements that you believe are deceptive
explaining the deception of each ad.
 Is deceptive advertising harmful?
Objective
 To define Deceptive Advertisement
 To give examples of Deceptive Advertisement
 To explain if deceptive advertising is harmful
Definition of Deceptive
Advertisement

Advertising that makes false claims or

misleading statements, as well as advertising
that creates a false impression.
Types Deceptive advertisement
 Bait and Switch
 Fake Testimonials
 Partial Disclosure
 Small Print
 Incomplete description
 False Promises and Vague Descriptions
 Unsubstantiated Claims
 Distorted Photographs and Ad-Copy
Example of deceptive Advertisement
Local Ad #1
SBH Holdings Limited and Forest Hills Joint
Venture Limited had advertised in
newspapers and pamphlets in 1995 and 1996
that purchasers of houses in the Estate
Homes of Forest Hills, St. Andrew, which they
were developing, would be offered facilities
such as a swimming pool, tennis court, a
clubhouse and security fencing. These were
not provided with the houses at the end of
construction
Example of the Town House
Example of Deceptive Advertisement
local ad # 2
 Mandingo
Example of Deceptive Advertisement
International Ad # 1
 Proactiv
Example of Deceptive Advertisement
International Ad # 2
 Theraflu
Is deceptive Advertisement Harmful?

 Yes, It is harmful to both the business and

customers
Is Deceptive Advertisement Harmful?
 Harm to Customer
◦ Financial loss- buying a product for the benefits
that was advertised just to realize that it doesn’t
have those benefits is a waste of money
◦ Emotional harm- building up hope just to be
disappointed, traumatize, worried
◦ Physical harm- pharmaceutical and health products
that withhold vital information
◦ Waste of time and energy- going to a store to
purchase a product just to realize that its not
available (bait and switch)
Is Deceptive Advertisement Harmful?
 Harm to Business
Businesses who are involved in Deceptive
advertisement usually think short term without
looking at the long term implication of their actions
◦ Lawsuits
◦ Loss of good reputation
◦ Loss of customers
◦ Loss of profits
Conclusion
 Advertisement is not innately bad, what
makes advertising harmful is when an
advertiser act either amorally or immorally in
advertising a product by making the
advertisement false or deceptive.