Thursday, March 11, 2010

Great Moments in False Advertising

When the pitch really is too good to be true: Low fat. No money down. Mission accomplished. Occasionally, the folks behind a product feel the need to paint a picture that isn't necessarily true to lure in the unsuspecting masses. Be it a purported discount price or a lab coat-clad actor in the commercial giving his "professional" opinion, false advertising comes in a multitude of flavors and ostensibly dates back to the Stone Age when a Neanderthal hyped a spear for its "state-of-the-art grip" and "35%-improved accuracy." Barely a week goes by without another company being accused or another class action settlement being doled out. Last year, Minyanville took a look at eight notable instances of false advertising, and here's more for you to enjoy. Airborne Maybe it's the depiction of the airplane passenger who just can't believe how many people around him are sick, but Airborne's claim that it "boosts the immune system with seven herbal extracts and a proprietary blend of vitamins, electrolytes, amino acids, and antioxidants" almost seemed too good to be true. Turns out, it was. A $30 million class action suit filed by the FTC determined "there is no credible evidence that Airborne products, taken as directed, will reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places." Powerade The Cola Wars hit another fever pitch in 2009 when Coke and Pepsi had their sports drinks pitted against one another in a lawsuit filed by Pepsi. Coke was taken to task for claims made in its Powerade campaign which alleged that it was a superior drink because of two electrolytes missing in Pepsi's Gatorade: calcium and magnesium -- albeit in 0.5% daily recommended values. In the end, Powerade won the suit when the judge ruled Pepsi "[had] not shown either a likelihood of irreparable injury or a likelihood of success on the merits" and found the "failure to present any concrete evidence of harm" striking Target Even though we're moving into the second decade of the 21st century, the term "organic" is still considered a nebulous term given how often it's misappropriated. Part of the blame lies with Silk brand soy milk's now-discontinued "organic" label and a recent string of Target newspaper ads which mistakenly echoed the claim. The farm policy advocacy group Cornucopia Institute filed a complaint against the retailer after noting Silk has quietly moved to the "natural" classification, leaving it legally open to pesticides and unregulated chemicals. Legal action is still pending. Nike The Greek God of Victory wouldn't be Mark Kasky's first symbol choice for the company accused of turning a blind eye to sweatshops. After Nike vehemently denied news accusations that it tolerated sweatshop conditions in Asian countries via press releases, advertisements, and direct letters, Kasky filed a lawsuit claiming the company lied in its response -- which constituted false advertising. Since several investigations determined Nike does contract foreign factories with inadequate regulation, the California Supreme Court ruled against the company. The parties subsequently settled out of court after appeal. Procter & Gamble While some folks might have hate it, it wasn't because it was beautiful. An ad for Pantene Pro-V airing in China cast dubious claims about the shampoo, alleging it would "supplement amino acids to make hair stronger for a lifetime" and make it "up to 10 times" stronger. After numerous complaints questioned the ad's authenticity, a British advertising authority determined that the ad wouldn't be shown with those claims. A similar factual discrepancy in a Procter & Gamble ad dealt with a skin cream that claimed it would make skin look "12 years younger." Apparently, folks took issue with the specific time span. Dell Besides receiving one that refuses to work, realizing you've been overcharged for a tower or laptop is the most infuriating aspect of the computer-buying process. In 2008, a New York judge vindicated many scorned owners when he ruled Dell Inc. engaged in false advertising -- not to mention fraud, deceptive business, and abusive debt collection practices. Specifically, the offense entailed ads which promised "no interest" or "no payment" only to have customers slammed with higher rates via the company's financing arm. Johnson & Johnson Somewhere within that small porcelain container between the salt and pepper shakers, there's a multimillion-dollar race to be the number one sugar substitute -- and along the way, there will be lawsuits. Merisant, the company behind Equal, filed a suit against Johnson & Johnson's McNeil Nutritionals, which makes Splenda, for its slogan "Made from sugar, so it tastes like sugar." Merisant -- and subsequently the jury -- contended that the slogan implied that Splenda was healthier than sugar, yet closer to sugar than its competitors. Both the settlement and the verdict were not read in court. Dannon Jamie Lee Curtis may have put on her most earnest face while running from Michael Myers or switching Paul Gleason's briefcase, but curled up on an evergreen couch and tucking into a carton of Activia? She's spouting some misinformation. Dannon agreed to settle a class action lawsuit out of court "to avoid the distraction and expense of litigation," according to a company spokesman. Health benefits like improving one's digestive tract's immune system was deemed false and was later altered to read the yogurt will "interact with your digestive tract's immune system." Microsoft Ever since the first Blue Screen of Death, Microsoft has been the whipping boy of the tech world -- but that isn't due to a lack of trying. In 2001, Microsoft found itself facing federal charges for a series of ads titled "Can Your Palm Do That?" which highlighted the many features found only on Windows-powered mobile devices. The problem: The features were only available after customers spent more for them -- just like the Palm. Wireless capability was touted as a PocketPC exclusive -- although one Palm device had it at no extra cost. After an FTC charge, the ads were pulled.

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