Asked by Maddie Murch on Jun 22, 2024
Verified
Cisco developed a carburetor for automobiles, which he called the "CiscoCarb." He advertised the carburetor in a national automobile magazine in a full-page advertisement under a caption that read: "Proven Performance-80 kilometres to a litre of gas in any car." The advertisement offered the carburetor for $100 on a 30-day, money back guarantee. Unless proper testing was done to substantiate the claim of 80 kilometres to a litre, a failure of the goods to perform as stated would constitute false or misleading advertising.
Misleading Advertising
Promotional materials that deceive or have the potential to deceive through false claims, omissions, or other deceptive practices.
- Acknowledge the legal implications for engaging in fallacious or misleading advertising governed by the Competition Act.
Verified Answer
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Final Answer :
True
Explanation :
Advertising claims, especially those related to performance, must be substantiated by adequate testing or evidence. If Cisco did not conduct proper testing to verify the claim of 80 kilometres to a litre, the advertisement could be considered false or misleading, violating advertising standards and potentially consumer protection laws.
Learning Objectives
- Acknowledge the legal implications for engaging in fallacious or misleading advertising governed by the Competition Act.
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