Deceptive advertising fools unwitting consumers into buying a product or service, making it an unethical and possibly illegal marketing practice. Astute consumers might check into an advertiser’s claims to ensure they are getting a good deal, but less-informed consumers might not have the time or ability to spot scams.
Advertising that promotes a service or product in a deceptive manner is unethical because it doesn’t provide consumers with all the information they need to make a good decision. Consequently, consumers might waste money on products or services they neither need nor want.
Marketers who use deceptive advertising employ unethical means to trick consumers. For example, advertising a shocking price cut is a common marketing tactic, but some businesses inflate their prices beforehand just so they can advertise the sizable price cut. In effect, the customer does not receive a good deal because the discount reflects virtual, not actual, savings. Common terms used to market fake price cuts include “closeout” and “clearance,” which give consumers the impression they have a limited time to act.
Luring Unwitting Customers
Another deceptive tactic is luring consumers to your establishment with the promise of a great deal, only to announce once they arrive the deal is no longer available. Called bait-and-switch advertising, this tactic allows salespeople to push more-expensive merchandise and services on customers who would not have visited the establishment had they not heard of the originally advertised deal.
Another problem is up-selling, or the practice of tricking consumers into spending money on unnecessary, overpriced features. Disreputable car dealerships, for example, might trick customers into purchasing special spray coatings that ostensibly provide weather protection but in fact do not. Provided the added services or features are effective, up-selling is not unethical. But if businesses fool consumers into buying a useless product or service, the tactic is unethical.
Deceptive advertising is illegal, so report dishonest marketing ploys to the Federal Trade Commission. Some advertising techniques are legal because they mislead without lying outright. Consequently, consumers should pay close attention to any deals they encounter, reading the fine print of all contracts and checking the reputations of businesses by contacting local business bureaus and consumer watchdog groups.
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