Concept of False Representation
Companies opt for false representation of products when they are too profit-centric rather than being consumer-centric. False or misleading information regarding the products appears to be profitable, but it is just the opposite. Companies generally mislead customers or falsely represent their products in the following manner:
Overpromising the quality or standard of products.
Hiding the actual ingredients of the products.
Discounting by artificially increasing the product price.
Making substitutes for branded products.
Promoting an aspect of a product that is not even present in it.
A company might perceive that showing a very good or promising image of a product can attract new customers. But in the market, the customers are the main decision-makers. False marketing could cheat a few customers on the pretext of over-promising promotion but not the entire market.
How is False Representation Done?
For instance, a cloth manufacturer promotes its socks based on the pretext that they are made up of pure cotton though they are not so. Similarly, nowadays, physical wellness companies promote their physiotherapy equipment based on the pretext that the machine eases pain and releases muscle spasms.
However, when a customer observes that the physical wellness equipment is of no use, it becomes apparent that the company falsely represented it. Such false representation of the products is illegal and unethical because the laws consider it is a violation of consumer rights and it is against the principles of business ethics.
Outcome of False Representation of the Product
A company an equate false representation regarding the product or its features to mislead the advertising or marketing. If a company promotes a product based on certain grounds that the product does not hold, it is nothing but deceptive marketing.
Such deceiving activities may appear to be fruitful in the short term but are more harmful to the brand in the long term. Initially, customers could feel attraction towards the promising aspects of a product, but the downfall of product begins when the promised aspects do not fulfill the customerâ€™s expectations. Deceptive or false information breaks the code of business ethics because the purpose of a business is not just revenue rather the well-being of stakeholders (employees, owners, customers).
As per the legal compliances, deceptive or false promises are liable to legal actions and can sue the companies that represent false information in court based on the violation of the Competition Act and Consumer Rights Protection Act. Based on the harm caused to the user by the so-called quality product, the court can order severe punishment or fine, or both. Thus, they must realize that deceptive advertising or false promising can jeopardize the companyâ€™s future.
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