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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.


© 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.

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Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Wed. September / 20 / 2017

Facebook moves to block offensive terms from targeted advertising campaigns - Los Angeles Times

Akron Beacon Journal

Facebook moves to block offensive terms from targeted advertising campaigns
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Congress Wants New Rules for Online Political Advertising After Russian Facebook Ads - Gizmodo


Congress Wants New Rules for Online Political Advertising After Russian Facebook Ads
Democrats in the House and Senate are pushing the Federal Election Commission to develop new rules governing political advertising on social media after Facebook revealed that Russian trolls routinely purchased ads on its platform during the 2016 ...
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Advertising agency with office in Norfolk being acquired by Richmond agency - Virginian-Pilot


Advertising agency with office in Norfolk being acquired by Richmond agency
Daniel Fell, president and CEO of ndp, and Ken Wayland, principal of Free Agents Marketing, are joining their companies under ndp's name by the end of the year. Both advertising agencies are based in Richmond; FAM has an office in Norfolk.

Social media 'saturated' with alcohol advertising - BBC News

Social media 'saturated' with alcohol advertising
BBC News
Hayles celebrated being sober for 100 days with a "sober mama" tattoo. She doesn't want to see alcohol advertising on social media. Speaking to BBC 5 live, the tattoo-shop owner from South Wales says social media marketing about “wine night for mum” ...

The ethics of advertising hate speech - Arizona State University

The ethics of advertising hate speech
Arizona State University
Facebook and Google have recently come under fire for allowing advertisers to target ads towards users who express an interest in hate speech or racist sentiments. Facebook has also been criticized for allowing Russian government-linked accounts to ...

LEGAL ADVERTISING - The Lincoln County News (subscription)

The Lincoln County News (subscription)
The description of the real estate encumbered by the Mortgage is as further described in a Quitclaim Deed dated January 18, 2017, and recorded in the Lincoln County Registry of Deeds in Book 5098, Page 124, which said description is hereby specifically ...

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Facebook Can't Leave Advertising on Autopilot - Bloomberg


Facebook Can't Leave Advertising on Autopilot
Facebook's computers turn that self-identified background into categories for advertising messages. Most of the time, this is innocuous. Nike might target ads for its workout shoes at people whose Facebook profiles say they're "gym rats," or "love ...

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iOS 11 rolls out today with Safari anti-tracking: Here's why advertisers hate it - ZDNet


iOS 11 rolls out today with Safari anti-tracking: Here's why advertisers hate it
Apple is rolling out iOS 11 and macOS High Sierra today, bringing with them a new cookie anti-tracking feature in Safari that advertising groups say will "sabotage the economic model for the internet". Globally, iOS is dwarfed by Android, but Safari ...
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Apple cuts cookies – but there is more to come in the online advertising arms race - The Guardian

The Guardian

Apple cuts cookies – but there is more to come in the online advertising arms race
The Guardian
Apple is cutting down on how many cookies advertisers can force on to your devices, with changes coming to iPhones, iPads and Macs. The advertisers, naturally, are not happy. Digital cookies are small text files that can be used to track users as they ...

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