Advertisement is the key to communication between customers and companies. Companies compete over customers by advertising their product effectively. The purpose is to convey their message many people as they can. Higher the viewership of advertisements, higher the conversion rate of these people to customers.
The competition sometimes makes businesses indulge in unethical practices. One of them is False or Misleading Advertisements. It is heinous misconduct and is labelled as crime in multiple countries and strict regulations are made to control it.
False or misleading advertisements contains a deceptive and false statement which is published or broadcasted intentionally to mislead the customers. The purpose is to associate certain good qualities with the brand’s product or services which aren’t actually present. For example, a product claiming health benefits or the presence of vitamins or minerals that aren’t actually present will fall under false advertising.
There are serious repercussions for such practices. One of them is investigation and monetary compensation to pay if you get caught. For example, “Dannon stated that its yogurt had nutritional benefits other yogurts didn’t. They had to pay $45 million in a class action settlement.” If you want to read more on you can keep your business up float and even grow it, read this online guide on how to improve your business.
Other damages include a stain on brand credibility and trust-worthiness. When customers approach the brands with such false claims and later find it as a fraud, never trust the brand again, which ultimately results in loss of potential business. Moreover, both present and any potential new customers will feel deceived and shift their business.
Also, the brand image will be severely damaged and it will be time-consuming and extremely difficult to rectify the damages inflicted on the brands reputation.
Due to these consequences, companies should refrain themselves from indulging in such circumstances. Brand Reputation is everything and should not be taken lightly. Otherwise, Doom is inevitable!