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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.

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.

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Contact us at enquiries@rtcoopers.com. Visit our website at http://www.rtcoopers.com


Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Sat. January / 18 / 2020

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How Doubling Down on Addressable Technology Can Transform An Advertising Buy  Broadcasting & Cable

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Female-targeted advertising, UW-Madison drinking culture factors in high female alcohol death rates  WKOW

Programmatic Advertising Is Driving Rapid Growth in Mobile Video - eMarketer
Programmatic Advertising Is Driving Rapid Growth in Mobile Video  eMarketer

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Sign spinning isn’t just about advertising, it’s a sport too  WECT

U.S. Advertising and Marketing Spend to Grow to Nearly $390 Billion in 2020 - Adweek
U.S. Advertising and Marketing Spend to Grow to Nearly $390 Billion in 2020  Adweek

Skala: Advertising agencies tell strange stories - Kearney Hub
Skala: Advertising agencies tell strange stories  Kearney Hub

Why Advertising Icon PJ Pereira Wrote a Novel About Kung Fu and AI - Adweek
Why Advertising Icon PJ Pereira Wrote a Novel About Kung Fu and AI  Adweek

11 key Walmart executives who are leading its advertising business - Business Insider Nordic
11 key Walmart executives who are leading its advertising business  Business Insider Nordic

AdTech Roundup: Top Coolest Things in Advertising Technology - MarTech Series
AdTech Roundup: Top Coolest Things in Advertising Technology  MarTech Series

Hypocrisy is at the heart of Facebook’s refusal to ban false political advertising - The Guardian
Hypocrisy is at the heart of Facebook’s refusal to ban false political advertising  The Guardian

4 Best Practices To Keep In Mind For Your AR Advertising Campaign - Grit Daily
4 Best Practices To Keep In Mind For Your AR Advertising Campaign  Grit Daily

Exhibit features historic Venice advertising from the 1920s - Sarasota Herald-Tribune
Exhibit features historic Venice advertising from the 1920s  Sarasota Herald-Tribune

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Advertisers beg Google not to kill Chrome cookies without a plan B, warning it could hurt start-ups  CNBC

Comscore Television Viewing Data Helps Predict Advertising Audience Decline - MarTech Series
Comscore Television Viewing Data Helps Predict Advertising Audience Decline  MarTech Series

Lazy Advertising Thinking Is A Deadly Sin - Forbes
Lazy Advertising Thinking Is A Deadly Sin  Forbes

Winterberry Group Research Finds US Advertising and Marketing Spend to Grow to Nearly $390 Billion in 2020, up More Than Seven Percent Over 2019 - MarTech Series
Winterberry Group Research Finds US Advertising and Marketing Spend to Grow to Nearly $390 Billion in 2020, up More Than Seven Percent Over 2019  MarTech Series

Tenn. lawmaker files bill allowing college athletes to be compensated for advertising - WMC
Tenn. lawmaker files bill allowing college athletes to be compensated for advertising  WMC

Digital Advertising and Data Privacy Regulation Debate - The National Law Review
Digital Advertising and Data Privacy Regulation Debate  The National Law Review

Spotify's New Podcast Advertising Tool Had 'Major' Results for One Early Advertiser - The Motley Fool
Spotify's New Podcast Advertising Tool Had 'Major' Results for One Early Advertiser  The Motley Fool

Opportunity knocks: navigating a route to the golden age of addressable advertising - Videonet
Opportunity knocks: navigating a route to the golden age of addressable advertising  Videonet

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Ladders 2020 Resume Guide: Resumes are advertising, and advertising sells  Ladders

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Should Massachusetts ban billboards advertising marijuana products?  The Boston Globe

Amazon's Expanding Its Video-Advertising Business - The Motley Fool
Amazon's Expanding Its Video-Advertising Business  The Motley Fool

Your Digital Detox May Be Toxic for Advertising - The New York Times
Your Digital Detox May Be Toxic for Advertising  The New York Times

Windstream Pushes Misleading Advertising Claims Against Charter - Wall Street Journal
Windstream Pushes Misleading Advertising Claims Against Charter  Wall Street Journal

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Twitter Sorry for Helping Advertisers Reach Homophobes  Advocate.com

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Is the Viral Non-Ad Ad the Future of Advertising?  The New York Times

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NBC’s Peacock Enlists Advertisers and Cable Companies in Marketing Push  Wall Street Journal

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Student-run advertising agency looks to expand  The Appalachian Online

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Verizon’s Super Bowl advertising will focus on, what else, 5G  Fortune

Some Super Bowl advertisers concerned Trump, Bloomberg ads could steal their thunder - NBCNews.com
Some Super Bowl advertisers concerned Trump, Bloomberg ads could steal their thunder  NBCNews.com

Advertising As We Know It Is Dead - Forbes
Advertising As We Know It Is Dead  Forbes

Majority of Advertisers Used Advanced TV Solutions in 2019, New Survey Finds - MarTech Series
Majority of Advertisers Used Advanced TV Solutions in 2019, New Survey Finds  MarTech Series

Hulu gets creative in effort to reinvent TV for streaming - AdAge.com
Hulu gets creative in effort to reinvent TV for streaming  AdAge.com

Study: Tinder, Grindr And Other Apps Share Sensitive Personal Data With Advertisers - NPR
Study: Tinder, Grindr And Other Apps Share Sensitive Personal Data With Advertisers  NPR

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'Ghost signs' offer glimpse into SC's advertising past  Charleston Post Courier

Microsoft Advertising to deprecate average position after all - Search Engine Land
Microsoft Advertising to deprecate average position after all  Search Engine Land

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ADVERTISING: Advertorial — GEORGE BALLING: The wine event of the year  Coeur d'Alene Press

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Chipotle Won the Advertising Battle Last Quarter  QSR magazine

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Waitrose apologises for offending vegans by advertising meat and dairy during ITV's first plant-based cooking show  The Telegraph

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WiCipedia: CES Recap, Salary Reveals & Outdated Advertising  Light Reading

YouTube overhauls advertising, data collection on kids content - The Washington Post
YouTube overhauls advertising, data collection on kids content  The Washington Post

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Company pitches real revenue from virtual advertising  My Citizens News

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36 of Madison Avenue's rising advertising stars under 36  Business Insider Nordic

Trump knocks 'mini Mike Bloomberg' over health care, 'false advertising' | TheHill - The Hill
Trump knocks 'mini Mike Bloomberg' over health care, 'false advertising' | TheHill  The Hill

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Outdoor Advertising Market in 2020: Global Industry Growth Analysis, Size, Share, Future Trends, Segmentation, Demands and Top Players Updates by Forecast to 2024 – Dagoretti News  Dagoretti News

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Fishbat Explains the Vital Role Patient Recruitment Advertising Will Play in 2020  PRNewswire

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YouTube advertisers blindsided by climate change denial videos  The Verge

Facebook Revises Rules On Political Advertising - NPR
Facebook Revises Rules On Political Advertising  NPR

Microsoft Advertising To Also Sunset Average Position - Search Engine Roundtable
Microsoft Advertising To Also Sunset Average Position  Search Engine Roundtable

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Reynolds named regional advertising director for Lee Enterprises Central Illinois  Bloomington Pantagraph

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Can revenue-hungry retailers rise to meet digital advertising's opportunity?  Marketing Dive

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UPDATED: 22 Months After Advertising, Framingham City Council Yet To Hire An Auditor  framinghamsource.com

What Amazon Advertising Will Look Like in 2020 - Adweek
What Amazon Advertising Will Look Like in 2020  Adweek

Facebook’s revised political advertising policy doubles down on division - The Verge
Facebook’s revised political advertising policy doubles down on division  The Verge

New Subway boss John Chidsey seizes control of ad budget - New York Post
New Subway boss John Chidsey seizes control of ad budget  New York Post

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Inside the Biggest 2020 Advertising War Against Trump  The New York Times

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CenturyLink Settles a Case for Deceptive Advertising  Cord Cutters News, LLC

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Why Is the Apple TV Constantly Advertising at Us?  TidBITS

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Expansion of the video advertising business of Amazon  Industry Global News 24

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Global In-Game Advertising Market-Trends, Analysis and Forecast till 2029 – Dagoretti News  Dagoretti News

FMSI Offering Advertising in 2020 Gold Edition book - The BRAKE Report
FMSI Offering Advertising in 2020 Gold Edition book  The BRAKE Report

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Brands and Agencies Are Bullish on New Walmart Advertising Partners Program  Adweek

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The streaming wars aim to kick off a new era in TV advertising  CNBC

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Trends of Internet Advertising Market Reviewed for 2019 with Industry Outlook to 2024  Technology Magazine

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The Pitch: Advertising and marketing news for 1.14.20  RichmondBizSense

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Why the 2010s were a "decade of duality" in marketing and advertising - and what needs to change  Econsultancy

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Microsoft Advertising launches sweepstakes for advertisers  Search Engine Land

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W2O acquires advertising, medical education firm 21Grams - Agencies - MM&M  Medical Marketing and Media

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Spotify to Suspend Political Advertising  Wall Street Journal

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9 Comparative Advertising Examples to Help You Get Ahead  Business 2 Community

Podcast Advertising Trend Predictions For 2020 - Forbes
Podcast Advertising Trend Predictions For 2020  Forbes

Global Contextual Advertising Market Likely to Grow Huge During 2020-2025 – Dagoretti News - Dagoretti News
Global Contextual Advertising Market Likely to Grow Huge During 2020-2025 – Dagoretti News  Dagoretti News

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Quibi video startup explained: Marketing, revenue, execs, advertising  Business Insider

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Facebook enables disinformation with advertising policy | Columns  Effingham Daily News

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ADVERTISING: Advertorial — DR. WAYNE M. FICHTER: How will poor posture affect your life?  Coeur d'Alene Press

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Amazon challenges Google and Facebook's hold on digital ad market  AdAge.com

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Apple iOS 13: Is Advertisers’ Worst Nightmare Coming True?  Forbes

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From internet to billboards, Ukraine's advertising market continues to grow  Kyiv Post

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Prwirepro advertising releases all new digital ebook online marketing series  MENAFN.COM

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Facebook backtracks on plans to monetise WhatsApp with advertising  MobileMarketing Magazine

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Television’s Biggest Advertisers Spent Almost $10 Billion in 2019  Adweek

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5 Things Retail Advertisers Should Focus on in 2020  Business 2 Community

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Complete Overview of Internet Advertising Market by Emerging Trends, Incredible Possibilities and Opportunities – Dagoretti News  Dagoretti News

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Video sites now more attractive than news sites for online advertisers in China  Tech in Asia

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How to Track Offline Conversions in Microsoft Advertising  Search Engine Journal

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Spotify launches 'Streaming Ad Insertion' tool for podcast advertising  Music Business Worldwide

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FDA, DEA seize 44 websites advertising sale of illicit THC vaping cartridges to US consumers as part of Operation Vapor Lock  FDA.gov

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What Will It Take For Addressable Advertising to Come to Fruition? [VIDEO]  TVRev

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Study Shows Dating Apps Share Personal Data with Advertisers  Law Street Media

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Dating apps need women. Advertisers need diversity. AI companies offer a solution: fake people  Seattle Times

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The shared economy comes to advertising  The Next Web

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Google slapped with $166 million fine from France over 'opaque' advertising policies  ABC News

Maryland lawmakers propose tax on digital advertising revenue - MNE Tax
Maryland lawmakers propose tax on digital advertising revenue  MNE Tax

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TikTok explores curated content feed to lure advertisers  Financial Times

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Site Stuff: Our television advertising is reborn  Mash Viral

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Advertising Market Demand & Future Scope Including Top Players  Technology Magazine

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Washington Privacy Proposal Draws Praise From Some Advocates, Criticism From Advertisers 01/17/2020  MediaPost Communications

Survey: Most advertisers used advanced TV solutions in 2019 | - Advanced Television
Survey: Most advertisers used advanced TV solutions in 2019 |  Advanced Television

Thanks To Our Advertisers! - Above the Law
Thanks To Our Advertisers!  Above the Law

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