EMBA Program

Jahangirnagar University
Spring Semester’ 20
Course No: EMBA 510 (Business Ethics & Legal Environment)
Section: C

Course Teacher Submitted By

 
Shobuz Mia
Barota Chakraborty
Batch # 21
Associate Professor
Department of Marketing ID#20182077
Jahangirnagar University
Savar, Dhaka - 1342
 Topics to Be Covered

 What is False or Deceptive Advertising?

Business Ethics & Legal Environment

 Types of Deceptive Advertising.

 Discuss some false advertisement .
 Deceptive advertising disadvantage.
 Solutions
Business Ethics & Legal Environment
Definition
False advertising or deceptive advertising is the use of false or misleading
statements in advertising, and misrepresentation of the product at hand,
which may negatively affect many stakeholders specifically consumers.

False Advertising is defined as promotional marketing or advertising that

misrepresents the actual information so that the consumers are misguided about the
qualities, characteristics or geographic origin of the related product or services.

In other words, it refers to a published claim that results in an incorrect

understanding of a product or service that is being offered.

Topics: Deceptive Advertisement Practices: An Analysis on Bangladeshi Advertisements

Business Ethics & Legal Environment

Types of Deceptive Advertising

1. 1. Pricing - Based Methods.
2. 2. Other Deceptive Methods.

3. Pricing - Based Methods Classification

4. a) Hidden Fees and Surcharges

5. Service providers often tack on the fees and surcharges that are not disclosed to the customer in the
advertised price.
6. One of the most common is for activation of services such as mobile phones and credit cards, but is
also common in broadband, telephony gym memberships, and air travel.
7. In most cases, the fees are hidden in fine print, though in a few cases they are so confused and
obfuscated by ambiguous terminology that they are essentially undisclosed.
8. Hidden fees are frequently used in airline and air travel advertising.
 1. Pricing - Based Method
Types of Deceptive Advertising

2. b) Going Out of Business Sales

3. In many cases, liquidators hired to sell merchandise from a closing store will actually
raise the prices on items that were already marked-down on clearance.

4. For items already marked down, this means the liquidator increases the price and then
“discounts” it from there. By marking up their prices before discounting, these
companies are maintaining their previous profit margin.

5. c) Misuse of the Word “Free’’:

 1. 2. Other Deceptive Methods:
Types of Deceptive Advertising

2. a) Manipulation of Measurement Units and Standards:

3. b) Fillers and Oversized Packaging:
4. c) Manipulation of Terms:
5. d) Incomplete Comparison:
6. e) Inconsistent Comparison:
7. f) Misleading Illustration:
8. g) False Coloring:
9. h) Angel Dusting:
 Deceptive or false Advertisement
Deceptive or false Advertisement

Horlicks
Advertisements that claimed that children drinking Horlicks grow ‘taller,’ ‘stronger,’ and ‘sharper’ than
those who do not drink it. The advertisement is also extensively shown on TV channels. Another benefit
children get from drinking Horlicks, another advert said, is the ability to concentrate better than those
who don’t.
The advert goes as far as saying that it has been proved scientifically.
‘This is absolutely rubbish,’ said Bangladesh Breastfeeding Foundation chairman SK Roy.
‘There is no scientific proof to back this claim. This is false,’ said Roy.
In 2017, the BBF served a legal notice on GlaxoSmithKline, which produces Horlicks, for confusing
consumers with such misleading adverts. In 2008, the Advertising Standards Authority in UK banned a
similar Horlicks advert mistakenly broadcast on Ntv Europe, airing programme for Bangladeshi
community there.
 Deceptive or false Advertisement
Deceptive or false Advertisement

Milk Vita
In ads, Bangladesh Milk Producer’s Co-operative Union calls its products as ‘pure’ though the Safe Food
Act prohibits the use of the term ‘pure’ for selling food items in which additives had been used.
This company’s best known product is ‘Milk Vita’.
A 2016 study, conducted by Work for a better Bangladesh trust, revealed that about 20 per cent of the
advertisements studied promoted unhealthy foods.
 Deceptive advertising disadvantage
Deceptive advertising disadvantage

1. Deceptive advertising harms people in much the same ways as deception in sales and
tends to be wrong for the same reasons. Deceptive ads harm consumers by causing them
to have false beliefs about the nature of the products being advertised and thereby
causing them to make different purchasing decisions than they would have made
otherwise (and purchase things unsuitable for their needs).

2. Consumers Suffer

3. The first and most noticeable negative effect of deceptive advertising is that it leads
consumers to make uninformed decisions. If consumers are not being told the whole
truth or are being shown images that contradict or overshadow the actual traits of a
product or service, they are unlikely to make the best decisions for themselves.
 Deceptive advertising disadvantage
Deceptive advertising disadvantage

Businesses Suffer
At first glance, it might seem like deceptive advertising harms consumers and ends up benefiting
businesses that employ the practice. But deceptive advertising often does significant, even fatal, harm to
companies that use it.

Employees Suffer
Employees of companies that use deceptive advertising can end up bearing the consequences. They get
stuck between the customer and the advertising. The employees usually don't t write the ads or endorse
them, but when consumers are angered by deceptive advertising, they have to deal with unhappy people.
 Solutions

A good starting point for developing your business ethics is knowledge of the local, state and federal
rules, regulations and laws governing business practices. Not knowing basic compliance issues regarding
harassment, discrimination, health, safety, taxes and false advertising doesn’t protect you from fines,
Solutions

penalties, lawsuits, liens and even criminal or civil prosecution. As a CEO, you are more responsible for
understanding business legal issues than most other employees.

Every owner of the company can solution this unethical issue.

The End