Misleading Advertisement And Their Impact On Consumer Trust
                     M I S L E A D I N G  
A D V E R T I S E M E N T  A N D  
T H E I R  I M P A C T  O N  
C O N S U M E R  T R U S T
INTRODUCTION
 The infl uence of  advert isements on consumer 
choice is  undeniable .  Mis leading and fa lse 
advert isements are not just  unethical ;  they d istort  
competi t ion and of course,  consumer choice.  
Source: consumeraffairs.nic.in
When does an 
Advertisement become 
“Misleading”?
 When an edible  o i l  advert isement g ives  you the 
impression that  you are f ree  of  heart  problems so 
long as you are us ing that part icular  o i l ,  then i t  i s  
misrepresent ing facts.
Source: consumeraffairs.nic.in
Unethical Advertisement
 The eff ects of  unethical  advert is ing on consumers 
is  perhaps the worst  aspect about  this  k ind of  
advert is ing.  The consumer ends up making 
uninformed decis ions.  
Source: smallbusiness.chron.com
Truth about the product
 I f  you don’t  te l l  your customers the  truth or  paint  
a picture for  them with your  ad that overshadows 
or  contradicts  the truth about  your product or  
service ,  then they wi l l  make poor decis ions 
concerning those products and services .
Source: smallbusiness.chron.com
Effect on Business
 Another eff ect of  mis leading advert isements  is  
that  of  the eff ects on the bus iness i tse l f.  When a 
bus iness  creates  a fa lse statement,  then usual ly ,  
that  business doesn’t  see  that  the advert is ing wi l l  
end up as  a harm.  
Source: smallbusiness.chron.com
You Could Be Investigated
 I f  your advert is ing campaign is  suspected of  be ing 
mis leading,  the Federal  Trade Commission,  or  FTC,  
could invest igate  your ad to see i f  i t  is  in  
v io lat ion of  any laws.  
Source: smallbusiness.chron.com
You Could Incur Financial 
Loss
 I f  your company is  caught advert is ing fa lse ly ,  you 
could end up los ing a lot  of  money.  I f  you are 
forced to pul l  your ad,  you wi l l  lose al l  o f  the 
money that you spent  developing that ad.
Source: smallbusiness.chron.com
You Could Lose the Trust of 
Your Customers
 When you engage in  fa lse advert is ing,  your 
consumers wi l l  perceive you as untrustworthy.  
Both the customers you already have and any 
potentia l  new customers wi l l  tend to fee l  l ike  you 
betrayed them and take their  business e lsewhere.  
Source: smallbusiness.chron.com
Effect on Employees
 Your employees are on the f ront l ine,  and usual ly  
they wi l l  bear the brunt of  the consequences that  
come with fa lse advert is ing.  
 In such cases,  they usual ly  fi nd themselves 
between a rock and a hard p lace -  the rock being 
the  consumer -  and the hard place,  the decept ive 
advert isement.
Source: smallbusiness.chron.com
THANK YOU