Federal law states that all advertising—that means radio, print, billboard, TV, or anywhere else—must be truthful, not misleading, It also states that when possible, ads should be backed by scientific evidence, yet a 2018 study called the ‘Deceptive Marketing of Hope,’ conducted by the nonprofit, Truth in Advertising, or TINA, found that out of the 48 cancer centers it researched, 90% were deceptively promoting positive patient testimonials in their TV and digital marketing material. More recently Canada Dry agreed to pay $11 million to settle claims of false advertising made about using real ginger in their soda, and Walmart hosted a day-long sale on baby clothing, accessories, and equipment but shoppers said sales assistants didn’t even know the event was happening so they were not willing to give 30% off as advertised.

Class-action lawsuits filed by consumers over allegedly deceptive pricing practices have, too, been on the rise. According to Consumer Reports, since 2014 more than 150 lawsuits have been brought against more than 80 retailers, alleging that they duped consumers through false price advertising. So how ubiquitous is false advertising and how does it not only hurt the customer but hurt profits as well?

Here to discuss the dangers of false advertising is Bonnie Patten, Executive Director of Truth in Advertising, and joining via phone is former managing editor at the Hustle, Lindsey Quinn, who recently hosted a fake TEDTalk using clichés from other TEDTalks about the way to raise $60 million for a startup.

Comments

comments