Monday, November 23, 2009

Nine 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. In May, Minyanville took a look at eight notable instances of false advertising, and here's nine more for you to enjoy.

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.

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.

Click the banner pic to see the rest..

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