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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.

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.

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 Sun. October / 20 / 2019

The Lucrative Advertising Life Of Instafamous Kids - pymnts.com
The Lucrative Advertising Life Of Instafamous Kids  pymnts.com

5 Movies That Altered Advertising and Marketing - Adweek
5 Movies That Altered Advertising and Marketing  Adweek

BOZELL & GRAHAM: No Truth In Washington Post Advertising - The Daily Wire
BOZELL & GRAHAM: No Truth In Washington Post Advertising  The Daily Wire

Juul agrees to stop advertising to youth in settlement with Oakland nonprofit - San Francisco Chronicle
Juul agrees to stop advertising to youth in settlement with Oakland nonprofit  San Francisco Chronicle

Advertising, brand management professional named Bellisario Professor - Penn State News
Advertising, brand management professional named Bellisario Professor  Penn State News

Amazon's Starting to Pull Away From Competitors in Search Advertising - Motley Fool
Amazon's Starting to Pull Away From Competitors in Search Advertising  Motley Fool

Taco Bell being sued for 'false and misleading' advertising - Fox Business
Taco Bell being sued for 'false and misleading' advertising  Fox Business

Facebook opens search ads to all advertisers - Search Engine Land
Facebook opens search ads to all advertisers  Search Engine Land

The Impact of Artificial Intelligence in Advertising - Customer Think
The Impact of Artificial Intelligence in Advertising  Customer Think

Fox Partners With iSpot.tv To Improve Advertising Performance - Forbes
Fox Partners With iSpot.tv To Improve Advertising Performance  Forbes

Amazon gaining on Google in search advertising market share - GeekWire
Amazon gaining on Google in search advertising market share  GeekWire

Trump threatens to sue CNN for ‘falsely advertising as news organisation’ - South China Morning Post
Trump threatens to sue CNN for ‘falsely advertising as news organisation’  South China Morning Post

Honest Ads Act Is False Advertising - The Wall Street Journal
Honest Ads Act Is False Advertising  The Wall Street Journal

AT&T's Xandr purchases TV advertising company clypd: source - Reuters
AT&T's Xandr purchases TV advertising company clypd: source  Reuters

Google Dominated the $55 Billion Search Advertising Market for Over a Decade. Here's How Amazon Plans to Shake Things Up - Inc.
Google Dominated the $55 Billion Search Advertising Market for Over a Decade. Here's How Amazon Plans to Shake Things Up  Inc.

AT&T's Xandr Acquires Clypd to Boost TV Advertising Business - Yahoo Finance
AT&T's Xandr Acquires Clypd to Boost TV Advertising Business  Yahoo Finance

Couple sues Taco Bell for deceptive advertising after being overcharged $2.18 for Chalupas - FOX 5 DC
Couple sues Taco Bell for deceptive advertising after being overcharged $2.18 for Chalupas  FOX 5 DC

San Francisco Proposition F: Campaign Advertising & Contributions - KALW
San Francisco Proposition F: Campaign Advertising & Contributions  KALW

Google, Apple, Amazon, and Microsoft's earbud advertising explained - Fast Company
Google, Apple, Amazon, and Microsoft's earbud advertising explained  Fast Company

Snap launches dynamic ads to draw more advertisers - Reuters
Snap launches dynamic ads to draw more advertisers  Reuters

Livestreamed shootings have advertisers demanding better safety from sites like Facebook and YouTube - CNBC
Livestreamed shootings have advertisers demanding better safety from sites like Facebook and YouTube  CNBC

Meet the Women Running LA’s Top Advertising Agencies - Adweek
Meet the Women Running LA’s Top Advertising Agencies  Adweek

Dallas funding news: Advertising and natural resources top recent local investments - Yahoo News
Dallas funding news: Advertising and natural resources top recent local investments  Yahoo News

Amid Private Dinners and False Advertising, Facebook Comes Under Fire - Undark Magazine
Amid Private Dinners and False Advertising, Facebook Comes Under Fire  Undark Magazine

No Truth in Washington Post Advertising - CNSNews.com
No Truth in Washington Post Advertising  CNSNews.com

Ad Giant Wins Over Disney With Big Data Pitch - The New York Times
Ad Giant Wins Over Disney With Big Data Pitch  The New York Times

Advertising Week 2019: It All Starts With Brand Trust - Forbes
Advertising Week 2019: It All Starts With Brand Trust  Forbes

Jacksonville ISD to mull advertising for warehouse | News - Jacksonville Daily Progress
Jacksonville ISD to mull advertising for warehouse | News  Jacksonville Daily Progress

YouTube is letting politicians reserve advertising space for 2020 election - The Verge
YouTube is letting politicians reserve advertising space for 2020 election  The Verge

From the Archives: Squash advertising - Los Angeles Times
From the Archives: Squash advertising  Los Angeles Times

Tips for Using A Solo Ad for Affiliate Advertising - Times Square Chronicles
Tips for Using A Solo Ad for Affiliate Advertising  Times Square Chronicles

Bernie Sanders wants to ban advertising during presidential primary debates - Fox News
Bernie Sanders wants to ban advertising during presidential primary debates  Fox News

‘Crisis of trust’: Elizabeth Warren shines new light onto Facebook’s advertising business - Digiday
‘Crisis of trust’: Elizabeth Warren shines new light onto Facebook’s advertising business  Digiday

House panel pressures Reynolds to stop advertising Vuse e-cigarettes, pushes for documents - CNBC
House panel pressures Reynolds to stop advertising Vuse e-cigarettes, pushes for documents  CNBC

Advanced Advertising on Linear TV Coming Into Focus, FreeWheel's Dave Clark - BeetTV
Advanced Advertising on Linear TV Coming Into Focus, FreeWheel's Dave Clark  BeetTV

advertising firm Weedmaps cuts 100-plus jobs in response to slow adult-use market rollouts - Marijuana Business Daily
advertising firm Weedmaps cuts 100-plus jobs in response to slow adult-use market rollouts  Marijuana Business Daily

Rethinking and Predicting the Future of TV Advertising - Adweek
Rethinking and Predicting the Future of TV Advertising  Adweek

Gov. Newsom vetoes SB 589 prohibiting false advertising by addiction treatment facilities - Orange County Breeze
Gov. Newsom vetoes SB 589 prohibiting false advertising by addiction treatment facilities  Orange County Breeze

The death of TV ads; Amazon's ad problem; Frito-Lay rethinks its products - Business Insider
The death of TV ads; Amazon's ad problem; Frito-Lay rethinks its products  Business Insider

Juul agrees to restrict youth advertising - The Guardian
Juul agrees to restrict youth advertising  The Guardian

Why Your Favorite Denim Brands Are Advertising Like It’s the ’90s - Glamour
Why Your Favorite Denim Brands Are Advertising Like It’s the ’90s  Glamour

Amazon held its first big ad conference last week, luring about 400 people to Seattle - CNBC
Amazon held its first big ad conference last week, luring about 400 people to Seattle  CNBC

Advertising - The Ins and Outs of Amazon Advertising (And Why You Should Try It): Timothy Seward - MarketingProfs.com
Advertising - The Ins and Outs of Amazon Advertising (And Why You Should Try It): Timothy Seward  MarketingProfs.com

Surely advertisers can find better way to spend their money - Villages-News
Surely advertisers can find better way to spend their money  Villages-News

Novartis, following fellow cancer drug makers, turns to TV advertising with new Piqray campaign - FiercePharma
Novartis, following fellow cancer drug makers, turns to TV advertising with new Piqray campaign  FiercePharma

How advertising rates vary by category on Amazon - Marketing Land
How advertising rates vary by category on Amazon  Marketing Land

Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers - Yahoo Finance
Snap's (SNAP) New Dynamic Ads Target E-commerce Advertisers  Yahoo Finance

Amazon (AMZN) Q3 2019 Earnings Preview: AWS, Prime & Advertising - Yahoo Finance
Amazon (AMZN) Q3 2019 Earnings Preview: AWS, Prime & Advertising  Yahoo Finance

River Rouge sues Detroit over billboard and bus advertising - WXYZ
River Rouge sues Detroit over billboard and bus advertising  WXYZ

Alliances are Advertising Week's big trend - Axios
Alliances are Advertising Week's big trend  Axios

What HBO's 'Succession' can teach us about advertising - AdAge.com
What HBO's 'Succession' can teach us about advertising  AdAge.com

Vendasta Receives Top Award For Advertising Intelligence - AiThority
Vendasta Receives Top Award For Advertising Intelligence  AiThority

Kentucky gun range embraces 'free advertising' from ABC News mistaking its event for Syrian bombing - WDRB
Kentucky gun range embraces 'free advertising' from ABC News mistaking its event for Syrian bombing  WDRB

Covering Colorado Pueblo City Council approves marijuana advertising changes Sam Kraemer 10:19 PM, Oct 15 - KOAA.com Colorado Springs and Pueblo News
Covering Colorado Pueblo City Council approves marijuana advertising changes Sam Kraemer 10:19 PM, Oct 15  KOAA.com Colorado Springs and Pueblo News

5 Advertising Week Takeaways To Keep On Your Radar For 2020 - Forbes
5 Advertising Week Takeaways To Keep On Your Radar For 2020  Forbes

Juul halts advertising in United States, replaces CEO - The Verge
Juul halts advertising in United States, replaces CEO  The Verge

IBM's Rangaiah on Moving Beyond Advertising to Customer Experiences - BeetTV
IBM's Rangaiah on Moving Beyond Advertising to Customer Experiences  BeetTV

Microsoft Advertising's pitch deck for sponsored products ads - Business Insider
Microsoft Advertising's pitch deck for sponsored products ads  Business Insider

We Need a Truth-in-Advertising Commission — For Voters - brennancenter.org
We Need a Truth-in-Advertising Commission — For Voters  brennancenter.org

Global Advertising Agency Software Market Insights Report 2019-2025 : AccountAbility, AdPlugg, AD-IN-ONE, Wrike, FunctionFox - Daily News Reports
Global Advertising Agency Software Market Insights Report 2019-2025 : AccountAbility, AdPlugg, AD-IN-ONE, Wrike, FunctionFox  Daily News Reports

Lead Generation Advertising Compliance "Lessons" - Lexology
Lead Generation Advertising Compliance "Lessons"  Lexology

Twitter "Unintentionally" Used Your Phone Number for Targeted Advertising - EFF
Twitter "Unintentionally" Used Your Phone Number for Targeted Advertising  EFF

Is Extended Reality The Future Of Digital Advertising? - Forbes
Is Extended Reality The Future Of Digital Advertising?  Forbes

Twitter misused security information for advertising purposes - CNET
Twitter misused security information for advertising purposes  CNET

TikTok says it doesn't allow political advertising - CNN
TikTok says it doesn't allow political advertising  CNN

Global Advertising Market 2019 – WPP , Omnicom Group , Dentsu Inc. , PublicisGroupe , IPG , Havas SA , Focus Media Group , Guangdong Co. - The Industry Reporter
Global Advertising Market 2019 – WPP , Omnicom Group , Dentsu Inc. , PublicisGroupe , IPG , Havas SA , Focus Media Group , Guangdong Co.  The Industry Reporter

The power of PR in a post-advertising world - PRWeek
The power of PR in a post-advertising world  PRWeek

Top Story: France Télévisions set for advertising ban exemption during live sports coverage - SportsPro Media
Top Story: France Télévisions set for advertising ban exemption during live sports coverage  SportsPro Media

Joe Biden’s Digital Ads Are Disappearing. Not a Good Sign, Strategists Say. - The New York Times
Joe Biden’s Digital Ads Are Disappearing. Not a Good Sign, Strategists Say.  The New York Times

New connected TV study debunks 3 common myths about political advertising - AdAge.com
New connected TV study debunks 3 common myths about political advertising  AdAge.com

Singapore bans advertising for high-sugar beverages - BeverageDaily.com
Singapore bans advertising for high-sugar beverages  BeverageDaily.com

Oscar Mayer’s wieners are a triumph of American advertising - The Takeout
Oscar Mayer’s wieners are a triumph of American advertising  The Takeout

House subcommittee asks e-cigarette companies to stop advertising - CNBC
House subcommittee asks e-cigarette companies to stop advertising  CNBC

Cracking the code on podcast advertising for customer acquisition - TechCrunch
Cracking the code on podcast advertising for customer acquisition  TechCrunch

Advertisers on Why WhatsApp's Status Is a Good Testing Ground for Ads - eMarketer
Advertisers on Why WhatsApp's Status Is a Good Testing Ground for Ads  eMarketer

OTT Advertising: Why The Industry Needs More Transparency - AdExchanger
OTT Advertising: Why The Industry Needs More Transparency  AdExchanger

Elizabeth Warren expressed her ire over Facebook running fake ads for Trump — by running a fake ad - INSIDER
Elizabeth Warren expressed her ire over Facebook running fake ads for Trump — by running a fake ad  INSIDER

U.S. seeks advertising, sales data on e-cigarette companies - Reuters
U.S. seeks advertising, sales data on e-cigarette companies  Reuters

Disney Bars Netflix TV Ads in Battle for Streaming Supremacy - The New York Times
Disney Bars Netflix TV Ads in Battle for Streaming Supremacy  The New York Times

Snapchat Introduces a New Ad Unit for Ecommerce Advertisers - Search Engine Journal
Snapchat Introduces a New Ad Unit for Ecommerce Advertisers  Search Engine Journal

How the Ban on Medical Advertising Hurt Women Doctors - JSTOR Daily
How the Ban on Medical Advertising Hurt Women Doctors  JSTOR Daily

Older People Are Ignored and Distorted in Ageist Marketing, Report Finds - The New York Times
Older People Are Ignored and Distorted in Ageist Marketing, Report Finds  The New York Times

How Blockchain Is Affecting The Marketing And Advertising Industry - Forbes
How Blockchain Is Affecting The Marketing And Advertising Industry  Forbes

Massage Parlor Advertising a “Satisfying Experience” Busted For Prostitution - Spring Happenings
Massage Parlor Advertising a “Satisfying Experience” Busted For Prostitution  Spring Happenings

eBay is trying to cut into Amazon's growing advertising business - Business Insider
eBay is trying to cut into Amazon's growing advertising business  Business Insider

How blockchain will impact digital signage advertising - Digital Signage Today
How blockchain will impact digital signage advertising  Digital Signage Today

Tech Mahindra, InMobi to collaborate on video advertising solutions for mobile devices - Economic Times
Tech Mahindra, InMobi to collaborate on video advertising solutions for mobile devices  Economic Times

Advertising Week's Pitbull concert undermines a week of equality talk, say critics - AdAge.com
Advertising Week's Pitbull concert undermines a week of equality talk, say critics  AdAge.com

Advertising in the automotive industry: It’s a piece of cake - ITProPortal
Advertising in the automotive industry: It’s a piece of cake  ITProPortal

Advertisers are pushing the limits of how they make money from agencies - Digiday
Advertisers are pushing the limits of how they make money from agencies  Digiday

LETTER TO THE EDITOR: NDP advertising was misleading - Warriors Central
LETTER TO THE EDITOR: NDP advertising was misleading  Warriors Central

Microsoft Advertising will also deprecate accelerated delivery - Search Engine Land
Microsoft Advertising will also deprecate accelerated delivery  Search Engine Land

Facebook Ads in Search Results Rolling Out to More Advertisers - Search Engine Journal
Facebook Ads in Search Results Rolling Out to More Advertisers  Search Engine Journal

Advertising Week confab attracts record attendance, Fox News hosts - New York Post
Advertising Week confab attracts record attendance, Fox News hosts  New York Post

Display Advertising Software Market 2019 Regions, Companies, Types and Their Applications 2025 - All Times Tech
Display Advertising Software Market 2019 Regions, Companies, Types and Their Applications 2025  All Times Tech

Is it time to ban political advertising on Facebook? - Social Europe
Is it time to ban political advertising on Facebook?  Social Europe

EffWeek 2019: 'Advertising has lost its humanity and its ability to entertain' - The Drum
EffWeek 2019: 'Advertising has lost its humanity and its ability to entertain'  The Drum

LinkedIn Introduces Enhanced Targeting Tools for Advertisers - Search Engine Journal
LinkedIn Introduces Enhanced Targeting Tools for Advertisers  Search Engine Journal

Screenvision's CEO on why advertisers should take a look at in-theater advertising - AdAge.com
Screenvision's CEO on why advertisers should take a look at in-theater advertising  AdAge.com

What Advertisers Can Do to Prepare for the Coming Triopoly - Adweek
What Advertisers Can Do to Prepare for the Coming Triopoly  Adweek

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