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

Can I Write and Print My Own Business Brochures and Business Cards?
If you have a computer and a printer, preferably one that can print in color, then you can make your own brochures and business cards that are very professional-looking! Be sure to use good quality paper (that is available at any office supplies store like Office Depot or Staples) for anything that you are going to hand out or send to potential customers and clients.Writing Text for Your Brochure and Business CardThe very best thing to do is to get a few examples of business brochures and business cards, preferably from the same type of business as the business you are starting.
How to Create Ads that Sell with Little Effort
One of the main problems people find withmarketing, is the actual selling.How can you create ads which sell?Well there are tons of articles, and payfor e-books to help you create ad copy, butthere is a free and easy way to createyour own ads which sell, sell sell.
Lamination of Signs
I suspect that everyone has an idea of what lamination is even if you have only seen it in passing. Restaurant menus are a common example.
Giorgio Armani: A Persuasive Campaign
Lets examine the use of Giorgio Armani Company's advertisements for a persuasive campaign. My reasoning is because the company is separated into several different divisions, while each tries to sell their product, the advertisements must maintain an overall company image.
Avoid The Big Advertising Mistakes
Is your advertising copy getting the results you want? If not, look at your current marketing to see if you're making one of the major copywriting mistakes:Selling features instead of benefits. Telling your customer that your "fabulous new ALF-400 comes complete with AeroScan and BandControl technologies!" doesn't actually tell them anything.
Not Another Calendar! - Choose Advertising Specialties That Sell
As I was searching through a kitchen drawer the other day, I found dozens of pens, pencils, letter openers, sticky-note pads, oversized paper clips, rulers, dental floss, calendars, magnets, whatsits and thing-a-ma-bobs, each with the name of a business on the front. In looking through my "collection" I discovered some things I love and use and others that I can't imagine why I picked them up.
Advertising Costs Getting Too High?
Everyone knows that advertising is essential to growing a business. One problem that small business owners have always faced is the high cost of marketing.
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.
Add More Pizzazz To Your Ad For More Profits
I recently completed a Marketing Makeover for an Adthat wasn't generating results for the owner of a Piano Tuning Business.Here is the original ad:========================================A BETTER PIANOA well tuned and adjusted piano is a beautiful instrument.
Localized Advertising - Door-to-Door Ad Distribution on the Fly!
Have you ever had to distribute door-hanger advertisements for your business?
7 Essential Elements for Profit-Pulling Ads
Advertising will make or break your business. It is crucialto your success that you learn to write great ad copy.
Predictions for 2010
2005 puts us at the mid-point of the first decade of the new millenium. What will things look like at the end of the 1st decade of the new millenium in the world of advertising? I thought I'd project where the ad industry is headed and what 2010 (or sooner) might look like.
Diamonds Are For Evil
The task of executing successful advertising campaigns for products made exclusively for women is understatedly tempestuous. Any Average Joe consumer would relay the message that feminine product commercials put him under a great deal of stress and discomfort.
Why Your Ads Aren't Working
The president of a manufacturing company recently asked me, "Why isn't my advertising working?" Have you ever been asked this question? Have you ever asked it yourself?Like most marketing communications questions there are no simple answers. After all, communication is a high level activity.
Imaging Isnt Everything
Many home improvement contractors attempt to use advertising to expand their client base and increase profits. Whether it be yellow pages, mailers, ads, or valpak; for many it's a total waste of time and money.
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.
What Happened? Troubleshooting Poor Response from Ad Campaigns
Too many small business owners today run ad campaigns that get little to no results, and they have no idea why. When you have the knowledge to troubleshoot the poor responses, you also have the knowledge to make the needed changes so that - next time - your sales improve! Let's take a look at the breakdown of an ad campaign, and how to determine what went wrong.
7 Questions to Ask Before You Advertise
Most business owners and managers keep a fairly close eye on their marketing budgets.And nothing throws a budget out of whack faster than advertising.
Attention-Grabbing Fixes that Make Your Yellow Page Ad Leap Off the Page
Stand Out in Ways that Matter to Directory UsersA Yellow Page directory presents a difficult challenge foradvertisers. All the competitors are packed together, withinthe space of a few pages.
5 Tips for Hot Yellow Pages Ads
Yellow Pages advertising is one of the mostpopular forms of advertising in the country today.Almost every home in America (96.

More Advertising Information:

Related Articles

Secrets of Getting Free Advertising
The opportunities for getting free advertising for your product or services are limited only by your own imagination and energies. There are so many proven ways of promoting your own objectives without cost that it literally boggles the mind just to think of listing them.
Outdoor Sign
Many business organizations that needs to disseminate late-breaking information to a large number of people. Out door sign boards are the perfect solution for them that command the attention of all who pass underneath.
Information Gathering & Delivery May Never Be The Same!
Give Us The Bottom Line!If you are like most people, you may have skipped down to the bottom to see how much we charge. Well we don't! That's right, the free customized information product we give away is totally free.
Humor in Advertising
Many of the most memorable ad campaigns around tend to be funny. Advertisers use this strategy to attract customers to their product.
10 Simple Techniques To Make Your Ad Get Powerful Attention
1. Make your ad's keywords and phrases standoutby enlarging the text.
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.
Create A Killer Brochure: 9 Steps to the Perfect Piece
If you are creating a brochure, make sure you follow these 9 steps to get best return on your investment:1 Grab AttentionYou need a hook that gets your audience interested. The headline or main text is your first chance to grab attention.
5 Newspaper Advertising Myths Revealed
What I'm about to reveal are myths that most people thinkare 'true.'They seem set in stone yet they are deadly to theadvertiser.
Tips for Using Paid Advertising
Quite a few business out there can't survive without some type of advertising and/or brand recognition, so advertising your business is one of the most important aspects in running certain types of business. It's also one of the most frequently asked questions for "how to".
Double the Effectiveness of Your Company Brochure
Let's face it - most brochures go straight into the bin. But if you know the big mistake to avoid, as well as the secret to make people keep your brochure - and read it, over and over again - you're laughing.
Small Business Image
The single easiest way to increase sales is to look professional. People believe what they see.
Unlock The Power Of Online Groups
Yahoo Groups: I see countless marketers on shoestring budges turn to traffic exchanges for free traffic. If they would spend the time creating online groups rather than clicking for traffic they would see much more quality traffic.
Do Your Radio Ads Work?
Most small businesses don't have a high poweredadvertising agency to produce selling radiocommercials for them and end up with somethingakin to a high school play, or with the businessowner reading tired copy.The radio salesperson knows that by suggesting theowner be the star, visions of Dave from Wendys orthat guy with the talking dog who says "roll thatbeautiful bean footage" come to mind.
3 Simple Steps to Getting Thousands in Free Advertising
Many entrepreneurs believe that they understand what public relations is, but very few do. Publicity and public relations can be used to boost your business by thousands of dollars a week or kill it; the trouble is using it to your advantage.
5 Tips for Hot Yellow Pages Ads
Yellow Pages advertising is one of the mostpopular forms of advertising in the country today.Almost every home in America (96.
Three Keys to Crafting Successful Print Ads
Want to create print ads that get results? Below are three keys to get you started.1.
Creditability In Advertising
I recently saw an ad taped to my mailbox, mind you, my mailbox is shared by many residents of my area. The postal real estate is typically reserved for flyers of lost dogs, cats, small children, etc.
Increase Business By Being Nice
I have been reading articles on increasing sales using search engine optimisation as well as writing them for a very long time and I have not seen many which point out the best way to increase sales.The answer is obvious yet often overlooked; you just have to be as good to your customers as you would expect any other site owner to treat you.
How To Write Eye-Grabbing Headlines That Catapult Your Prospects Into Your Ads
If you're interested in improving the selling results of your ads, tweaking your headlines is a great place to start. Because your headlines influence the sales results of your ad more than any other element.
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.