Misleading Marketing Claims Could Land You a Lawsuit
Everyone seems to have the same tactics. "This is the last day of the sale." "Buy now before the sale ends." Only to keep extending the sale indefinitely, more or less tricking the consumer. Well, it looks like doing such things could find marketers on the other end of a lawsuit for deceptive practices.
Two examples have caught my attention:
One is more recent; the UK's Competition and Markets Authority has said that you cannot use urgency or price reduction claims that put "unfair pressure" on or provide misleading claims on customers.
The organization has examples that show what that means:
Urgency = any scarcity, act fast, or time-limited claim.
Discount = special offer or price.
Clearly the trick here is "unfair pressure."
Who does this apply to in the UK?
All merchants, including marketplaces. It clarifies that marketplaces are responsible for its seller's claims of accuracy.
If you think this can't happen in the US, Old Navy was sued in a class action last week for just such practices in the State of Washington, where the claim is the company violated Washington's Consumer Protection Act.
Examples included:
Some emails advertised that products were on sale “today only” or “this week only.” The next day (or the following week), however, the plaintiffs received emails advertising the same sale.
Some emails advertised that consumers had one “last chance” to take advantage of a discount. The next day, however, the plaintiffs received emails advertising the same discount.
The message for brands is -- some sales puffery is OK but misleading or false urgency is not. Have these class action lawsuits checked out popular sites like Shein and Temu? Even travel or ticketing sites are filled with misleading urgency claims.
It could be a good reminder for marketing teams in promotional season when things get desperate.
The images below exemplify what the UK considers misleading or unfair pressure.
