Legal and Ethical Considerations of Marketing

What does the Competition and Consumer Act 2010 (Commonwealth) do?

• it makes false and misleading advertising illegal

• it highlights the effects of misleading advertising

• it makes rulings on specific claims by products

• it permits deceptive claims only in some circumstances

Claiming that a shampoo is superior to all others available on the market is an example of

• vague statements

• exaggerated claims

• special offers

• ethical issues in advertising

A moisturiser marketed as helping to fight early signs of ageing is an example of

• unprovable claims

• before and after advertisements

• vague statements

• special offers

Why can a word like special above a product be seen as a potential ethical issue?

• it is vague

• it means it has a distinct quality

• the product may not have this distinct quality

• it could be used to knowingly mislead or confuse consumers

What ethical issue is highlighted by apps tracking consumer data without their knowledge?

• truth in advertising

• children's advertising

• invasion of privacy

• creation of needs

• product placement

What ethical issue is highlighted by companies advertising things consumers want but had not known about before seeing the advertisement?

• truth in advertising

• children's advertising

• invasion of privacy

• creation of needs

• product placement

What ethical issue is highlighted by companies concealing advertising through inclusion in movies and TV shows?

• truth in advertising

• children's advertising

• invasion of privacy

• creation of needs

• product placement

Why might companies use product placement as a method of advertising?

• to show their company doesn't need to be advertised

• to create needs by playing on people's emotions

• it helps reach savvy consumers tired of advertisements

• it is a cheaper option than other advertising