Our focus this week is on liability for deception when it comes to products. For example, one of the cases in the chapter reading is about when Listerine marketed itself as preventing colds. In actuality, it did not help to prevent colds and the Federal Trade Commission ordered it to stop marketing itself that way to the public. Why? Because consumers were buying it because they believed it would prevent colds and anytime you try to fool consumers into buying your product using false and misleading advertising – you have committed a violation of an EXPRESSED warranty to the public.
Be sure that your example answer for the discussion question meets the criteria and is not just an opinion or “bad taste” advertisement. See below from the chapter reading about expressed warranties:
An express warranty as provided in the Uniform Commercial Code (UCC) is an express promise (oral or written) by the seller as to the quality, abilities, or performance of a product. The seller need not use the words promise or guarantee to make an express warranty. A seller makes a warranty by displaying a sample or model or giving a description of the goods. Promises of how the goods will perform are also express warranties.
The Federal Trade Commission (FTC) is tasked with preventing “unfair and deceptive trade practices.” It regulates whenever the public is being deceived, regardless of any effects on competition. The FTC considers:
Content and accuracy of an advertisement
Performance claims of an advertisement
Celebrity endorsements
Bait and Switch tactics
Product comparisons
A great website to see cases and find examples per the FTC – https://www.ftc.gov/enforcement/cases-proceedings and of course our legal resource tool, Nexis-Uni.
Discuss the following:
The power of advertising is in its persuasive influence and this influence can take several different forms. Research and explain one example of persuasive advertising within the last year that is unfair and deceptive and that violates the law in regards to product liability warranty. Please post an example no one has posted about. Be sure to identify and explain the law in regards to warranty and also pursuant to tort law. See section 13-2: Advertising as a warranty contract basis and tort law for product liability in the text book. Be sure to provide the sources for your research and answers.
In relation to government enforcement of product warranty and liability claims, research the Internet or the Strayer Library for information about the latest activities by the Food and Drug Administration (FDA), Consumer Product Safety Commission (CPSC), and the National Highway Traffic Safety Administration (NHTSA). Are these administrative agencies too powerful today? Why or why not? Analyze whether these agencies are proactive or reactive in their approach to consumer protection as to products today and, provide an example product to substantiate your answer.
