| Introduction | | | | The latter company had engaged in misleading |
| The issue chosen for discussion is misleading | | | | advertising because they had designed their packaging |
| advertising. Marketers are constantly looking for ways | | | | in such a manner that it would confuse consumers. |
| in which they can sell their commodities at a profit as | | | | Most of them were attracted to the large prints and |
| some of them may employ ethical mechanisms to do | | | | could not see the smaller prints written on their |
| so but others may resort to questionable methods. In | | | | products. Consequently, these companies attracted |
| response to this, a number of stakeholders in the | | | | many consumers on a false promise. This was the |
| Australian marketing scene have laid out some policies | | | | reason why the Australian Competition and Consumer |
| to prevent unethical marketing through misleading | | | | Commission had to intervene in the situation. The |
| advertising. | | | | Commission asserted that categorical statements |
| These issues shall be examined in depth in subsequent | | | | made during any kind of advertisement must be |
| portions of the paper. However, these regulations may | | | | substantiated in order to ensure that consumers are |
| not eradicate all cases of misleading advertisement as | | | | not confused by these assertions. Additionally, the |
| will be highlighted through newspaper reports, journal | | | | Commission also felt that it was absolutely necessary |
| articles etc. An overall conclusion will be given on the | | | | for the clients to be informed about this. (Cannold, |
| condition of misleading advertising in Australia and what | | | | 2008) |
| can be done to curb such practices. | | | | Video Enzy was therefore obliged to send apologies |
| Why tackling misleading advertisement is important for | | | | through short text messages to all their customers. |
| business and society | | | | The company was also required to offer refunds for |
| Advertisements are a crucial aspect of any type of | | | | the price difference that arose out of the disparities |
| business because they promote products or let the | | | | between their offers and the true claims. These |
| public know about them. Consequently, when this route | | | | refunds were enforceable by the court of law. They |
| is exploited by unscrupulous businesses persons to | | | | depicted the fact that companies need to be held |
| mislead the public, then it may destroy the very image | | | | accountable for their actions especially with regard to |
| of advertising. When that occurs, the public may loose | | | | advertisements that misled the public about prices. |
| faith in advertising in general and this may hinder sales | | | | (Lawrence, 2008) |
| for vast numbers of companies. (Australian | | | | There are certain scenarios in which misleading |
| Competition and Consumer Commission, 2008) | | | | advertising can occur in indirect methods. For instance, |
| It should be noted that the public can loose faith in | | | | Pregnancy Counseling Australia has been guilty of |
| advertising if they discover that large numbers of | | | | engaging in misleading advertizing. Usually this company |
| businesses are engaging in misleading advertisement. | | | | targets young women (or older ones in rare cases) |
| However, if the public or any other stakeholder fails to | | | | who may be dealing with an unintended pregnancy. |
| detect this, then it allows dishonest business men to | | | | The latter organization is usually fond of telling these |
| offer promotions that they cannot deliver or to sell | | | | young women that they should consider |
| commodities that cannot function in the manner that | | | | - Parenting |
| they were supposed to. Consequently, this influences | | | | - Adoption |
| the consumer who may be affected either physically, | | | | - Other alternatives |
| psychologically or emotionally by this misconceptions. | | | | Usually, the latter organization sends these |
| Aside from that, it is the right of the consumer to get | | | | advertisements to a series of general practice |
| value for his money. Misleading advertisement breaks | | | | surgeons all over Australia. What the young women |
| the 1974 Trade and Practices ACT which requires | | | | do not know is that Pregnancy Counseling Australia |
| that all advertisements be conducted in a manner that | | | | actually collaborates with Right to Life Australia and |
| ensures fair-play so as to offer consumers due | | | | they even share mailing addresses. Consequently, the |
| protection. (Chaples, 2007) | | | | latter organization is engaging in misleading advertising |
| Additionally, misleading advertising is of interest to the | | | | because they are using another body to do their work |
| country as a whole because if allowed to continue, | | | | for them |
| then it would deteriorate the country's business | | | | Another closely related issue is tied to many sporting |
| environment. Unscrupulous businesses would sell at the | | | | clubs found all over the country. These sporting clubs |
| same level as honest businesses and this would | | | | usually claim that children can try out for the tam at |
| violate marketing principles. Eventually, the overall | | | | certain points in time and then think of joining the team |
| marketing climate or the country's economy may even | | | | later. These advertisements create the implication that |
| begin to decline. | | | | children need not be subjected to the kind of problems |
| Stakeholder's analysis | | | | that are being encountered by others in relation to the |
| There are a number of issues that have been plaguing | | | | enrollment process. Consequently, most of them go for |
| the marketing scene with regard to misleading | | | | those try outs thinking that they may actually get a |
| advertisement. The first one amongst this is | | | | chance of escaping the recruitment process. However, |
| advertisements made to children. These | | | | this is not what usually happens because those |
| advertisements are created in such a manner that | | | | children who attend the try outs will eventually have to |
| they target individuals who do not have the capability | | | | participate in the recruitment process and they will still |
| of differentiating fact from fiction hence it can be | | | | not be able to escape the high stress scenario that is |
| argued that those advertisements are actually | | | | synonymous with the latter process. In other words, |
| misleading. (EPM Communications, 2005) | | | | this is still misleading advertising. (Australian Competition |
| Australia has instituted a number of laws intended on | | | | and Consumer Commission, 2008) |
| protecting children from misleading advertisements. | | | | Sometimes, misleading advertisements may not |
| This is because the country has outlawed | | | | necessarily be linked to monetary gains for the |
| advertisements during children's viewing times. | | | | companies under consideration. In other situations, |
| However, this does not mean that the entire practice | | | | those companies may simply be trying to gain status |
| has been curbed. In fact, there are still certain | | | | through those approaches. For instance, the issue of |
| advertisements that are geared towards capturing the | | | | churches offering free meals to the homeless is |
| attention of young viewers even during other times. | | | | another form of misleading advertisements. Such |
| For instance, advertisements playing music or having | | | | churches usually advertise that they are engaging in |
| jungles are likely to attract children who may then | | | | charitable acts where they are actually helping |
| believe whatever those advertisements are telling | | | | destitute persons or the like. Consequently, the target |
| them. | | | | audience usually approaches these institutions with |
| One such example is the case of milk advertisements | | | | certain ideas in mind. However, when they reach the |
| to children. A number of milk companies claim that their | | | | organizations, such persons are usually obliged to first |
| products enhance performance during sports. This | | | | attend church services before they can get their free |
| assertion has no scientific backing. In fact, some | | | | meals. In other scenarios, these homeless people may |
| physicians have claimed that skimmed milk can actually | | | | be required to fulfill certain bible class obligations before |
| heighten the chances of getting prostate cancer. | | | | being given any meals. While these advertisements |
| These experts have asserted that the information | | | | are being created by nonprofit organizations, it still does |
| should be included in product packages so as to | | | | not undermine the fact that it is an advertisement. This |
| protect various consumers from any health risks. | | | | is because it is tailored to meet certain objectives |
| (Kraak & Pelletier, 2003) | | | | which are geared towards the public. |
| Additionally, certain advertisements use celebrities to | | | | Misleading advertising can also be depicted in political |
| endorse their products. By doing this, the products will | | | | advertisements. Many people have examined this |
| be creating the impression that it is those food | | | | issue within the Australian context and have asserted |
| products that can cause one to live their dreams or | | | | that certain political advertisements can be considered |
| live a celebrity-like life. Adults have the ability to | | | | as misleading ones. Australian politicians and other |
| differentiate between marketing and real assertions. | | | | stakeholders have been trying to regulate this issue for |
| They can understand that celebrity endorsements do | | | | the past two decades. In the nineteen eighties, some |
| not necessarily mean that the product can cause | | | | people tried to regulate the content of political |
| someone to become just like the celebrity. However, | | | | advertisements by asserting that this should reflect the |
| such complex reasoning may not be prevalent in | | | | truth. However, this motion was ignored in parliament. |
| children. They usually take things at face value and this | | | | (Catalano, 2004) |
| misleads them into purchasing those items as they are. | | | | During the country's 2004 elections, the country was |
| Another interesting feature about advertisements to | | | | then forced to consider these matters again. At that |
| children is that most of them are usually done for | | | | time, the media group - Free TV Australia - had |
| products that are low in nutrients; these include | | | | created certain rules that allowed political |
| breakfast cereals and other junk foods. Such foods | | | | advertisements to contain whatever they wanted. |
| are high in sugar and low in other essential nutrients. | | | | These groups represented a series of commercial |
| However, many companies do not include that | | | | television stations within the country. It asserted that |
| information in their advertisements; instead, most of | | | | the political parties were given the permission to |
| them assert that children should actually purchase the | | | | express themselves and that the accuracy of the |
| products so as to become healthy. This is very | | | | information which they disseminated would not |
| misleading and can cause children to become | | | | necessarily have to substantiated. |
| overweight or even obese. (Graeme, 2008) | | | | It should be noted that political advertisements are a |
| In close relation to advertisement made to children is | | | | particularly sensitive issue because they are not |
| the issue of making assertions about certain | | | | included in the 1974 Act. Additionally, they are sensitive |
| commodities that may not necessarily reflect their true | | | | because they affect so many individuals who may |
| nature. For instance, many food companies are fond | | | | elect their representatives based on the promises they |
| of this. They usually, call their foods light. In other words, | | | | made during their political advertisements yet those |
| such companies have two different versions of certain | | | | individuals may not have any intention of keeping them. |
| products. One product may be richer in fat or sugar | | | | This creates a problem because it does not relay true |
| while the other one which is called light is alleged to | | | | information and is therefore misleading. (Young, 2003) |
| contain half the amount of fat or sugar in the original. | | | | Conclusion |
| This is misleading advertising because it causes people | | | | There are a series of motivations that may cause |
| to believe that they are consuming products with high | | | | individuals to engage in misleading advertising. Some |
| nutritional value or products with less harmful effects. | | | | may do it for monetary gains. These are usually tied to |
| This belief can actually lead to obesity because the | | | | pricing strategies or they may also be tied to misguided |
| products still have fats and sugars and these are not | | | | information about the product content. Consequently, |
| healthy. | | | | consumers end up purchasing items at a higher price |
| In close relation to the latter example is the labeling of | | | | or at a lesser quality than they had intended. In certain |
| food as containing zero fat. This is also another | | | | scenarios, misleading advertising may occur in order to |
| gimmick that could cause dire consequences to the | | | | boost an individual's status as is the case with political |
| consumer because it does not necessarily mean that | | | | advertising. Lastly, misleading advertising can occur in |
| the item has no fat at all; it simply means that its fat | | | | order to boost membership for instance through |
| content is lower than in other similar products. This | | | | sporting clubs or church donations. |
| means that when consumers continually purchase and | | | | Reference |
| use such food items, then they may still be subjected | | | | Catalano, C. (2004): Voters to be socked with $40m |
| to the same health problems that their counterparts | | | | advertising blitz; Sydney Morning Herald, 30 August, p. |
| eating the non-low fat foods are. (Taras et al, 2003) | | | | 49 |
| In certain circumstances, some companies may assert | | | | Young, S. (2003): Scare campaigns - negative political |
| that the food they sell has no fat and this may actually | | | | advertising in Australia; Australasian Political Studies |
| be true. However, what those companies do not | | | | Association conference report, University of Tasmania, |
| advertise is that their product has excess quantities of | | | | Hobart, 29, p. 27 |
| sugar; which is usually the case for most of these | | | | Kraak, V. & Pelletier, D. (2003): How marketers reach |
| products. The overall consequence is that when | | | | young consumers: Implications for nutrition education |
| consumers purchase these commodities, they end up | | | | and health promotion campaigns; Family Economics |
| taking as much calories as they would have if they | | | | and Nutrition Review, 11, 3, 31-41 |
| had bought the original version. This is misleading | | | | EPM Communications (2005): TV Is the |
| advertising because it makes consumers believe that | | | | Most-Often-Used Source of Health Information; |
| lacking fat implies lacking calories yet those products | | | | Research Alert, 16, 7 |
| have a lot of sugar. Instead, these companies need to | | | | Taras, H., et al. (2003): Television's Influence on |
| include such vital information for the public to | | | | Children's Diet and Physical Activity; Developmental |
| understand it. (EPM Communications, 2005) | | | | and Behavioral Pediatrics Journal, 10, 17, 68 |
| A number of companies have been engaging in | | | | Cannold, L. (2008): Submission to review of Australia's |
| misleading advertising with regard to their overall prices. | | | | Consumer policy framework, retrieved from accessed |
| A good example of such a company is one of | | | | on 15th October |
| Australia's leading DVD renters and sellers; Video | | | | Australian Competition and Consumer Commission |
| Enzy. The company had been in the news during the | | | | (2008): Misleading advertising; retrieved from accessed |
| month of March this year because of engaging in | | | | on 15th October |
| misleading advertisements. The company had made | | | | Graeme, S. (2008): Product development, misleading |
| claims that they would offer the cheapest prices in | | | | advertising and regulatory compliance; Australian |
| Australia for a certain period of time. The company | | | | Regulatory Compliance review, 12, 3, 45 |
| has made these assertions in bold over their product | | | | Lawrence, C. (2008): Video Enzy apologizes over |
| package but they had attached some conditions to it. | | | | misleading advertising; Sydney Morning Herald, p 12, |
| The conditions were written in very small print and | | | | 12th May |
| could scarcely be read by whoever was interested in | | | | Chaples, E. (2007): What now for misleading |
| purchasing the item. The company has decided that | | | | advertisers? |
| they would beat lower prices at about a dollar. | | | | |
