RIBENA

False Advertisement of Vitamin C

 5.1 Corporate Responsibility Toward
Consumer Stakeholders
• Consumers are the most important
stakeholders
• Consumer confidence and spending are also
important indicators of economic activity and
business prosperity.
• Peter Duckers (management guru)
– One true purpose of business is to create
customers
 5.1 Corporate Responsibility Toward Consumer
Stakeholders
-Universal Policies-
Adopted by United Nations’ Assembly for strengthening national consumer protection policies
around the world
1. The right to safety – to be protected by against products production processes, and services which are
hazardous to health or life
2. The right to be informed – to be given facts needed to make an informed choice, and to be protected
against dishonest or misleading advertising and labeling.
3. The right to choose – To able to select from a range of products and services, offered at competitive
prices, with an assurance of satisfactory quality.
4. The right to be heard – To have consumer interest represent in the making and execution of
government policy, and in the development of products and services.
5. The right to satisfaction of basic needs – To have access to basic essential goods and services, adequate
food, clothing, shelter, health care, education and sanitation
6. The right to redress – To receive a fair settlement of just claims, including compensation for
misrepresentation, shoddy goods or unsatisfactory services
7. The right to consumer education – To acquire knowledge and skills needed to make informed,
confident choices about goods and services while being aware of basic consumer rights and
responsibilities and how to act on them.
8. The right to healthy environment – To live and work in an environment which is non-threatening to the
well-being of present and future generations.
 5.1 Corporate Responsibilities and Duties
toward their Consumers

• The duty to inform consumers truthfully and fully of a

product or service’s content, purpose and use.
• The duty not to misrepresent or withhold information
about a product or service that would hinder consumers’
free choice.
• The duty not to force or take undue advantage of
consumer buying product selection through fear or stress
or by other means that constrain rational choice.
• The duty to take care “due care” to prevent any
foreseeable injuries or mishaps a product (in its design and
production or in its use) may inflicts on consumers.
5.1 Consumer Protection Agencies and Law
(5 Goals)
• Because of the market failures and imperfect
markets, consumers are protected to some extent
by federal and state law in the US
1. Providing consumers with reliable information about
purchases.
2. Providing legislation to protect consumers against
hazardous products.
3. Providing laws to encourage competitive pricing
4. Providing laws to promote consumer choice.
5. Protecting consumers’ privacy.
5.1 Consumer Protection Agencies and Law
(U.S. Consumer Protection Agencies)
• The Federal Trade Commission (FTC) deals with online privacy, deceptive
trade practices, and competitive pricing
• The Food and Drug Administration (FDA) regulates and enforces the
safety of drugs, foods, and food additives, and set standards for toxic
chemical research.
• The National Highway Traffic Safety Administration (NHTSA) deals with
motor vehicles safety standard
• The National Transportation Safety Board (NTSB) handles airline safety.
• The consumer Product Safety Commission (CPSC) sets and enforces
safety standards for consumer products.
• The Department of Justice (DOJ) enforces consumer civil rights and fair
competition.
5.2 Corporate Responsibility in Advertising
-Ethics and Advertising-
• Advertising is supposed to provide information
to consumers.
• But major aim in advertisement is to sell
products and services
• These lead to deceptive advertisement which
often target children and minorities
• Example:
– Tobacco industries use nicotine and other addictive
ingredient in cigarettes
5.2 Corporate Responsibility in Advertising
-Ethics and Advertising-
• Questions can be used by both advertising corporations
and consumers to gauge the ethics of ads:
1. Is the consumers being treated as a means to an end or as an
end? And what and whose end?
2. Whose rights are being protected or violated intentionally and
inadvertently? And at what and whose costs?
3. Are consumers being justly and fairly treated?
4. Are public welfare and the common good taken into
consideration for the effects as well as the intention of
advertisements?
5. Has anyone been or will anyone be harmed from using this
product or service?
 Ribena: False Advertising of Vitamin C
Content
• Ribena admitted that its Ready to Drink Ribena
contained 7mg of vitamin C per 100ml
• The company also claimed in the advertisement that
the drinks contained four times the vitamin C of
oranges.
• In fact no detectable Vitamin C in the drinks
• GlaxoSmithKline, the maker, admitting it mislead
customers about vitamin C.
• The company has been fines $217,500 after appeared
in Auckland District Court.
False Advertisement in Malaysia
(The Cappuccino Case)
 False Advertisement in Malaysia
(The Sunway Lagoon Case)
• The lockers were small and overpriced, The changing
rooms were dirty and one had no toilet paper.
• The experience with animals were also disappointing.
Most of the cages were undersized and many exhibits
were not open.
• Some of the water park attractions looked fun for
children six and under but rather boring for anyone
else.
• Overprice of boogie board renting (RM30 for 30
minutes of 15 tides)
Thanks…..