Commercial: Consumer - Discounts - Misleading Advertising


Marketing is an important tool for attracting customers. It is commonplace to see banners announcing bargains of "70% off the retail price." However a recent High Court decision illustrates that care must be taken with such marketing.

In the case of Office of Fair Trading v Officers Club Ltd and another [2005], the defendant advertised products at 70% off the retail price. The relevant product was offered for sale in a limited number of stores at a higher price for a period of 28 days before being released to most of the stores at the discounted price.

The Office of Fair Trading issued proceedings claiming that such a strategy was misleading to consumers.

The defendant claimed that:

there was no misleading advertising as the strategy had at all times complied with the guidelines enshrined in the Code of Practice for Traders on Price Indications issued by the Department for Trade and Industry; and it was legally impossible for them to be in contravention of the misleading advertising rules when they were complying with the code.

The court rejected these arguments and found that:

the Code of Practice was designed to give retailers a degree of certainty while granting the regulatory authorities flexibility to curtail misleading practices despite strict adherence to the code; although the defendant had offered the products for sale at the higher price in accordance with the Code, he had not had a genuine belief that it could sell the products at those prices; and the adverts were misleading.

Sales and discount offers are an effective way of bringing in consumers and boosting revenue, however, businesses should be wary of using marketing strategies that may be misleading or in bad faith.

If you require further information contact us.

Email: enquiries@rtcoopers.com

© RT COOPERS, 2005. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Full service commercial law firm based in the City of London specialising in Biotechnology Law, Employment Lawyers, Media lawyers, Entertainment Solicitors, Pharmaceutical Lawyers, Intellectual Property Law, Litigation, Corporate Finance, Copyright, Redundancies, Commercial Lawyers, Commercial Law, Commercial Contracts, Data Protection, property lawyers.

Visit our website at http://www.rtcoopers.com.


More Resources

3 Simple But Powerful Off-Line Advertising Strategies
There are several ways to advertise and get the word out about your business online and the best of them include f-ree search engines, pay per click search engines, writing articles, utilizing press releases, doing joint ventures/ad co-ops, and posting to message boards and forums related to your target market.But one advertising method that's neglected by most online marketers is off-line advertising.
Seven Ways to Waste Your Money on Yellow Pages Advertising
Each year there is a Yellow Pages arms race where competitors in each category are encouraged to out spend each other. There is only one winner in this arms race, and it is not you! Too many advertisers waste their money on Yellow Pages advertising without first considering their marketing strategy.
Dont Put All Your Eggs in The Same Basket
Solution: You can protect yourself by partnering with other lead sources because it is unlikely that they will all have a problem or technical issue at the same time.Other alternative: It doesn't hurt either to use a few marketing tools to generate leads for your business.
Prove It! - Give Your Marketing and Advertising More Credibility
Your marketing and advertising won't be effective if your potential customers don't believe the claims you make. So how can you prove your that you can do what you say you can?Tone it down.
Improve Your Promotional Flyers And Improve Sales
Admittedly, I have not seen your advertising flyer. Then again, I probably don't have to.
If You're Tired Of Adverts That Don't Work And Letters That Don't Sell, Then You Must Read This
Over the 32 years I've been involved in sales, marketing and management, I've discovered that there are two fatal marketing mistakes made by business owners.
The Secrets To Successful Radio Advertising
Ask some businesses about radio advertising and they'll tell you it's the greatest investment they ever made while others will tell you it was a complete waste of time and money. So why does radio work for some and not for others? What's the secret to successful radio advertising?Know this: Radio can be a major player in your advertising mix if you know how to do it and I'm about to give you the secrets to successful radio advertising so read on.
Yellow Pages Ads - Buying Secrets
Yellow Pages Ads - Buying SecretsOK- let's agree that many businesses can benefit greatly from Yellow Pages advertising. Let's also agree that few businesses enjoy paying for this "necessary evil".
Too Much Build-Up: Over-Zealous Ad Copy Can Break The Sale
How many times has this happened to you?A friend recommends a film that just came out: "You've GOT to see this movie! It's SO (funny, scary, suspenseful, etc.).
Small Cards, Big Ideas: Alternative Uses for Business Cards
Aggressive business card marketing isn't about handing your business cards out to everyone you see.The card itself must have a new use, an innovative design, or something other than the usual contact information printed on it.
How to Write Ads that Increase Your Business
I caught myself wracking my brain over what kind of article I should write for newspapers that would be useful to business people. It struck me that I was making a solid effort to get into the mind of my target market.
Create Your Own Business Cards, Part 1
In this lesson, we will create a business card, using Microsoft Word. I created a new template for my business card.
Direct Mail Catalogs & Brochures: Write Captions That Sell
Many prospects skim through catalogs and brochures, glancing at the photos and reading the accompanying captions only when a particular image arouses their interest. That's when you have their attention.
Promotional Vehicles
It is difficult to miss a Hummer, but how many companies could afford to run one to promote their business? The answer is, of course, very few and it is doubtful whether GM's overgrown offspring would be the most suitable promotional vehicle for many of them. What then are the alternatives and how could businesses benefit from using a vehicle as an advertising medium?What is a promotional vehicle?A promotional vehicle is a car, truck or SUV with purpose-designed adhesive vinyl graphics applied to its exterior, promoting a business or one of its products or services.
Promote yourself on radio for free
Unless you have become extremely popular in your personal or business name, you likely need all of the marketing and promotion you can get. Now, you may say, of course, I'm aware of this, but who has the money? This a good and fair question.
Top Jingle Companies: What to Look For, What to Expect
The internet offers you the opportunity to seek out jingle companies and listen to their jingle samples online. Your success depends upon a thorough evaluation of as many companies as possible.
Why Hire an Advertising/Marketing Consultant?
As a business owner, you have the option of taking several different approaches to handling your Marketing and Advertising. You may choose to handle the responsibility yourself, with the idea that no one understands your business quite the way you do.
LED Moving Message Displays
LED's are becoming more and more popular in all kinds of lighting fixtures. For simpler, slimmer design, moving message displays utilize Light Emitting Diodes (LED's) as the display technology.
Reach vs. Frequency: Touch 100 Once or 25 Four Times?
Reach and frequency are terms generally used when planning advertising campaigns. However, the concept of reach and frequency applies to any promotional activity you undertake: direct mail, direct selling, and even networking.
Brand Young and You Brand for Life; Why Cinema Advertising is an Effective Tools for Marketers
In the world of advertising there are many forms of media that can be utilized to get an advertisers message to its intended audience. Newspapers, television, radio, Internet and billboards are effective tools in this effort but one form of advertising that is often overlooked is Cinema Advertising.

More Advertising Information:

Related Articles

The $500.00 A Month Plan
One way to make extra money or start a business of your own is by placing advertising which will pay a good profit. Selling printed information by mail can br financially rewarding.
Custom T-shirts -- Put Your Company Logo on Cotton!
An effective way to gain company recognition is to order custom t-shirts with your company name, logo, phone number, and other important information on them. You can use customized apparel to outfit your employees as well as to contribute a sense of professionalism and reliability to your company.
Business Plan Appeal - Five Rules For Writing Attention Grabbing Headlines
The success of a business plan stands or falls on its ability to get potential investors to take a moment to read it. Nothing works better for doing this than well-written headlines designed to interrupt and engage investors.
5 Reasons Why Headlines Are Crucial To Your Website's Success
Without a powerful headline, your message stands little chance of being noticed in an increasingly competitive marketplace. If your headline doesn't capture attention and pull prospects into your sales copy, than your marketing effort is a total waste of energy and resources.
LED Score Boards
LED scoreboards can be utilized in most of the sporting event for eye-catching effects replace traditional scoreboards. This high- tech lighting system is both energy - efficient and able to produce a very bright light.
Radio and Television Ads: Clever Vs. Annoying
Ever heard or seen a radio or television commercial that you really liked and actually looked forward to hearing or seeing again only to be assaulted by another one so annoying it made you want to heave your radio or television out the window?What makes one commercial so enjoyable while others seem to be so abysmal? It's all in the ability to make the listener or viewer remember the ad in a creative, clever way and I'm about to give you some advice on how to do just that so read on!One of the most successful ways of creating clever ads is to add humor. Unfortunately that's not an easy thing to do as you have probably heard or seen many commercials try and fail.
16 Methods for Getting Free Advertising
1. Place copies of your circular on bulletin boards throughout your community, such as in coin-operated laundries, grocery stores, barber shops, etc.
Testing Headlines
A correspondent to AdBriefing, my monthly newsletter, has posed a very sticky question. How, she asks, can you tell whether a headline you have written is a good one?or not? What she means by this, I imagine, is whether the headline will actually help to make sales, rather than just act as a passing amusement to its readers.
Choosing a Print Mail Dealer
"Print & Mail is a type of service that is popular among small mail order operators. It is an inexpensive way to get your ad material printed and mailed to people.
10 Simple Techniques To Make Your Ad Get Powerful Attention
1. Make your ad's keywords and phrases standoutby enlarging the text.
Write Attention Getting Advertisements
The most important aspect of any business is selling the product or service. Without sales, you aren't generating any income and your business will die.
Driving Customers to You - Your Car as a Marketing Vehicle
You can turn your vehicle into a rolling advertisement. Costs start at just a few dollars, and you can put your business name, slogan, phone number and web site URL in front of thousands of potential customers while you are driving along the freeway, stuck in traffic or even while you are parked.
Is there anything new under the sun? Heres how to find out if your bright idea is unique.
"There's nothing new under the sun" is probably the one phrase no inventor wants to hear, seldom believes, and is always trying to prove wrong. However, moving too quickly to prototype stage and first disclosure can turn out to be costly for the inventor who doesn't take the time to find out if his or her invention is already patented.
How To Create Instantly Compelling Ads Every Time
Use This Quick 3-Question Evaluation Process, So You Can Be Sure Your Message Will Sell!EVALUATION #1: "Well, I Would Hope So!" When you make a claim, don't think about it in terms of words coming out of your mouth. Think of it in terms of words entering your prospects ears.
How to Get People to Read Your Ads Like CRAZY!
Rule One :- The HeadlineThe headline should summarize the whole offer. It should grab the eye, and make you want to read the subheading.
Persistant Advertising Will Do No Harm!
From my experience, I've been on many discussion groups and have spoken to many other like minded people. The one topic that always seems to arise is how to get massive sales right away.
Do I Need Raised Letter or Full Color Business Cards?
If you've been searching around for business cards that will best represent the image you want to portray for your business, then you've no doubt encountered many options. The Big Two, as I like to think of them, are "Raised Letter" and "Full Color.
Ten Secrets for Getting FREE Advertising
The opportunities for getting free advertising for yourproduct or services are only limited by your imagination andenergy. There are so many proven ways to promote withoutcost it's truly mind-boggling! Here are ten proven methods.
Create Your Dynamic Elevator Speech
So, what's an elevator speech, and how do you get one?What Is It?An elevator speech is a short (15-30 second, 150 word) sound bite that succinctly and memorably introduces you. It spotlights your uniqueness.
Take Your Radio Ads to the Next Level
Most small businesses do not have a high poweredadvertising agency to produce award-winning radiocommercials for them. Most award-winning radiocommercials win for the wrong reasons anyway.