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.

Visit our website at http://www.rtcoopers.com.


More Resources

Understanding The Basics Of Advertising
I get the L.A.
Create Your Dynamic Elevator Speech
So, what's an elevator speech, and how do you get one?What Is It?An elevator speech is a short (15-30 second, 150 word) sound bite that succinctly and memorably introduces you. It spotlights your uniqueness.
Magnetic Business Cards: Make Your Marketing Message Stick
What is it about magnets that draw people to leave them on fridges and file cabinets for years at a time?Many people like to have the contact information handy for common service providers without flipping through a bulky phone book. Magnets are the perfect solution for being seen in this situation.
Localized Advertising - Door-to-Door Ad Distribution on the Fly!
Have you ever had to distribute door-hanger advertisements for your business?
The Man With The Grasshopper Mind
The title of this article also happens to be one of the "20 Greatest Headlines Ever Written."Did you know, just changing the headline has been known to dramatically improve the effectiveness of an ad or sales letter by up to 1700 percent? Yes, headlines are that powerful--and that important!However, over the last few years, I've noticed a proliferation of badly written--or just plain weak headlines--both online and off!Particularly disturbing is the copycat syndrome.
Advertising: 10 Powerful Secrets To Help You Sell Your Ad Space Like Crazy
If you want to sell more ad spaces, you must read and use the secrets I am revealing here:1. Give your customers a discount when they spendover a certain dollar amount for ad space.
Business Ideas: 5 Uncommon Ways To Generate More Online Business
Sometimes, it is not an obvious business idea that will makeyou more money.It may be what is not so obvious, which most people never thinkof that may make you money.
Why Would Anyone Want Your Business Card?
Do you remember how proud you were the first time you saw your name in print?Most entrepreneurs feel that same flush of pride when they gaze on their new business cards. That small piece of paper represents years of planning and effort and hard work and dreams.
Small Business Image
The single easiest way to increase sales is to look professional. People believe what they see.
7 Essential Elements for Profit-Pulling Ads
Advertising will make or break your business. It is crucialto your success that you learn to write great ad copy.
Secrets And Top-Tips Of Mail Order Advertising
Good Advertising creates more production, thus greater consumption, faster turnover and lower sales price per unit. To a great extent it determines the success or failure of the mail order operator! When working up an advertising program remember that what is genuinely desirable to you may or may not appeal to the majority of your prospects! Different types of merchandise or services demand completely different advertising media.
LED Moving Message Displays
LED's are becoming more and more popular in all kinds of lighting fixtures. For simpler, slimmer design, moving message displays utilize Light Emitting Diodes (LED's) as the display technology.
The Future of Voiceovers: Hold Your Tongue...Possibly Forever
"Do we need to cast a voice-over talent for this project?"That's a valid question any producer might ask when creating an advertisement, corporate audio-video presentation, video game, etc. Of course, the answer depends on what elements the producer and client feel will best communicate with the audience.
Getting the Most Out of Your Networking Group
Here is my personal list of things to do at your networking group:(1) Bring your business cards. Sound simple? Well, I regularly meet people at networking groups who have forgotten their cards or their cards are at the printers.
Moving message Sign
Moving Message Signs are a unique, attention-grabbing way to communicate and motivate. They are used for eye-catching shop-front or under awning advertising, promotions of products or services, directing and/or welcoming customers, displaying safety and emergency information, directing customers to specific service areas or entrances etc.
How Can All the Radio Stations Be #1?
Are you confused by all the information you receive from various radio stations? Do they all tell you they are #1 and you don't know who to believe? Most of them probably are #1 so believe it or not, they aren't lying to you. The question is, "What are they #1 in and is it a group of ears you want to reach?"Quite often a radio "Account Manager" or "Account Executive" which are pseudonyms for radio sales person, receives a call from someone who states they are gathering information for someone else, the real decision maker, someone who is looking at radio as a possible advertising medium.
Juice - Scam of the Decade or Opportunity of the Century
If you are an ardent web surfer and MLMer like I am, then I am sure you would have seen the sales pitch "Give away free broadband and earn £27 GBP each time". Depending on which side of the fence you are, this product is either God's gift to freebies enthusiasts, MLMers and all paying ISP subscribers or it is the biggest scam yet, bar none.
How to Get People to Read Your Ads Like CRAZY!
Rule One :- The HeadlineThe headline should summarize the whole offer. It should grab the eye, and make you want to read the subheading.
Go Ahead Im Listening
In today's fast paced environment, interaction with family and friends is often relegated to a few left over minutes here and there, leaving many people feeling isolated.Radio fills the gap.
10 Simple Techniques To Make Your Ad Get Powerful Attention
1. Make your ad's keywords and phrases standoutby enlarging the text.

More Advertising Information:

Related Articles

Whats The Frequency?
The more things change, some say, the more things stay the same. When it comes to marketing, I tend to agree.
Offline Advertising Tips
Since most of us are always online and our business is online, we often forget the importance of advertising our business offline. Print advertising can be one of the best forms of advertising for your buck.
How To Create A Better Brochure
Having a quality brochure makes a positive impression on a potential customer. It gives the appearance that you're serious about your business.
9 Tips for Better Billboards
It is a given that billboard advertising "outdoor"is not a "quick fix". If sales are down, you can'tquickly put up a few boards to boost the numbers.
Vinyl Banners for the Right Occasion
The sinage marketplace is competitive! Consequently, some companies are going to focus on price and neglect quality. To complicate the situation, companies that produce stock vinyl banner material offer a bevy of different materials based on weights/thickness, color, reflective properties, ink absorption properties, etc.
Printing - How Do I Buy It?
Why should I care where I get my printed material from, I'll just go for tenders and go with the low bidder. If you do this probably you won't be in business for long or you'll never really run a successful business.
What are Text Adverts?
Not everyone is aware of what are text adverts? Text Adverts are a form of low cost advertising used by website owners to promote their website and services to a quality targeted audience.Online advertising offers an outstanding opportunity to efficiently and effectively target your desired audience.
Mortgage Marketing - Broadcast Advertising vs Direct Advertising
Do you know how to design and deploya marketing campaign?Even if your ad budget is small you should still plan and measure the results of you advertising. This process is the key to your ultimate success.
Why Would Anyone Want Your Business Card?
Do you remember how proud you were the first time you saw your name in print?Most entrepreneurs feel that same flush of pride when they gaze on their new business cards. That small piece of paper represents years of planning and effort and hard work and dreams.
Small Business Image
The single easiest way to increase sales is to look professional. People believe what they see.
11 Ways To Make Your Business Cards Work For You
1. Spend money on decent quality business cards.
Why Not Use the Humble Fax in Your Advertising Strategy?
When my daughter complained recently about the prohibitive cost of news media advertising, we had a discussion about the ways in which she could sell her range of body products (hand creams, lip balms etc). I explained to her that huge firms like K Mart wouldn't spend millions of dollars annually for advertising if it wasn't necessary.
Prove It! - Give Your Marketing and Advertising More Credibility
Your marketing and advertising won't be effective if your potential customers don't believe the claims you make. So how can you prove your that you can do what you say you can?Tone it down.
100 Excellent Words and 70 Action Getting Phrases for Ad Writing
100 Excellent Words Absolutely. Amazing.
Non-profit Coupon Books and Coupon Mailers for Small Businesses
Many groups like the Chamber of Commerce, ASB at the local high school, etc. will ask if their members can get a discount if they shop in your store or use your service.
The Secrets To Successful Radio Advertising
Ask some businesses about radio advertising and they'll tell you it's the greatest investment they ever made while others will tell you it was a complete waste of time and money. So why does radio work for some and not for others? What's the secret to successful radio advertising?Know this: Radio can be a major player in your advertising mix if you know how to do it and I'm about to give you the secrets to successful radio advertising so read on.
Should You Advertise on TV?
When people discover my background in advertising,the questions flow. One of the most frequentquestions is "Should I advertise on TV?"I can't answer that questions until I ask anumber of questions first.
10 Reasons Why Your Company Needs Custom Invitations
I am always amazed when I hear about companies who spend tens of thousands of dollars organizing a make-it-or-break-it company event designed to celebrate a company milestone and/or impress prospective customers. Sometimes these events have big contracts or sales at stake! Yet, often planners will fall short on the most critical aspect of planning the event-the invitations! After all, before a client steps foot into your venue, or even confirms attendance, the invitation sets the tone and leaves the first and most important (and lasting!) impression!Have a look at this compelling list of "10 Reasons Why Your Company Needs Custom Invitations".
The Benefits of Specific Advertising
The great Claude Hopkins (Author of Scientific Advertising) once said, "Platitudes and generalities roll off the human understanding like water from a duck. They leave no impression whatever.
Effective Promotions Through Local Classified Sites
Today's online marketplace is extremely competitive. People want to market their products and services with the most cost effective manner possible.