Advertising Tips to Keep the Law Off Your Door
One of the most embarrassing things that could happen to any one of us is when after all the trouble we go towards doing a good job at our businesses is, when the law knocks at our door. It will not only damage our reputation, it is costly and it is not smart.
But if you are one of those who are still in the stage of a business where you feel that lawyers’ fees are better used somewhere else, then here are tips to keep your business moving forward with confidence even when you have very little knowledge of laws that could affect your business.
Over the years, legislation has been passed that is geared towards consumer protection. The consumers today, more than any other date in our history is better informed more educated and places greater demands on the seller. Laws then were passed to address the clamor of the public towards consumer protection.
Because laws are legislated and enforced at the local, state and federal levels, all you have to do is to recognize these laws to be confident that your business is not infringing on any even while you, like the majority, will want to avoid as much as possible, dependence on lawyers.
The major areas in marketing that is affected by law are:
1. Product decision
2. Promotional decision
3. Pricing decision and
4. Distribution decision.
Among these major areas, promotional decisions are, because of its nature, those that are immediately visible.
There are five major types of promotional activities that are directly affected by the law. Your advertising, your personal selling, public relations, publicity and sales promotions. Among these five activities, advertising is the most visible. Because it has always been geared towards promoting mass appeals to consumers, advertising is expected to give accurate information that will ultimately be used by the customers in making their buying decisions.
Advertising then is, among these five activities is controlled most by law.
Generally laws passed cover the following areas.
1. Statements that are false, misleading, exaggerations and other forms of giving out deceptive information whether verbal or visual.
2. Testimonials from witnesses that is incompetent.
3. Misleading price claims.
4. Insufficient claims. The claims distort a practical application or the true meaning of statements given by the professional community or scientific authority.
5. Making comparisons that places the competition in an unfair position.
6. Public releases that are offensive to decency.
7. Bait advertising.
An example of bait advertising is when a seller advertises a product for a much reduced price designed to invite customers. When customers flock to the site of the seller, the customers are discouraged from buying the low priced products that has been advertised. Instead the seller asks the customers to upgrade the purchase to higher priced or regular priced products.
Sellers are also required to adopt uniformity in procedures where the promotion benefits are made available to all buyers. This requires the seller to offer to all his customers and dealers the same promotional allowance. It is also the same with a special service that the seller decides to take.
The term misleading and deceptive is considered to be ambiguous in legal jargon. Debate on the term has often been highly contested in the courts regarding legality of some particular advertisements. The Federal Trade Commission however has made refinements on the definition of the terms but is subject the courts decisions.
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