by Gordon Hamilton

Created on: January 05, 2010

How deceptive advertising hurts businesses is something which any business considering engaging in it should very carefully consider. There can be no disputing the fact that deceptive advertising can be of benefit to businesses in the extremely short term but the damage it can do to businesses in the long term - often irreparable - means that the practice is one which should be avoided wherever possible.

Deceptive advertising on the part of any business is essentially where the business directly or indirectly makes false claims as to what the products or services it provides can offer consumers in a positive sense. This need not be a blatantly false claim, as deceptive advertising can also include exaggerated or simply misleading claims as to the benefits of a product or service. Any form of incorrect insinuation as to precisely what a product or service offers comes in to the category of deceptive advertising.

When a consumer sees a product or service advertised which promises to afford them benefits which they either desire or require, the likelihood is that - unless the claims are outrageous in the extreme - the majority of people will at least show interest in the first instance. Where the advert is made to be extremely tempting and the product or service is particularly relevant to the consumer, there is a very strong possibility that the potential customer will thereafter purchase the product or pay to secure the service. This will of course lead to potentially significant profit increases in the short term for the business providing the product or service.

The problems for the business are likely to start when the customer receives their product or finds themselves provided with the service. Even if it is not an instantaneous occurrence, there is likely to come a point where the customer finds out about the deceptive advertising and that the claims made by the supplier are not what they first appeared to be. Although the tendency in some instances for the business may be to give a virtual shrug in the knowledge that the purchase has already been made, this attitude is symptomatic of extreme short-sightedness.

Although it may be the case that the customer has purchased something which they are unlikely ever to need again and that the business was not dependant upon repeat custom, this does not mean to say that the dissatisfied customer can not cause problems for the business. The first way they can do so is to consult a consumers’ advice service or advertising standards agency. Either such course of action is certain to cause at least severe inconvenience to the business. Should the consumer subsequently choose to go to the press in an extreme instance, the negative publicity can totally offset and more the benefits perceived to have been obtained through the deceptive advertising campaign.

Even in the modern age of technology and advanced advertising techniques, word of mouth remains one of the most powerful advertising tools. Where a business conducts a deceptive advertising campaign, it is likely therefore that their dissatisfied customers will tell their friends and families, who will in turn tell theirs and so on, until the business’s reputation is conceivably damaged beyond repair.

How deceptive advertising hurts businesses is clearly something to be considered long and hard and an indisputable factor which can damage even the biggest and most successful of companies.

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