Sellers are responsible for claims they make about their products and services.

your ad specifies a certain level of support for a claim (e.g., “tests show X”), you must have at least that level of support.

Sellers are responsible for claims they make about their products and services. Third parties—such as advertising agencies or web site designers and catalog marketers—also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising or know about the deceptive claims.21

Pros and Cons of Advertising Advertising is part of doing business, and not all advertising is deceptive or harmful to consumers. The arguments, both for and against advertising, raise awareness that provides information to both companies and consumers in their production and consumption of information and transactions. General ethical arguments for and against advertising are summarized below.

Ethical Insight 5.1

Signs of an Advance-Fee Loan Scam: “Red Flags” from the FTC

• A lender who isn’t interested in your credit history. A lender who doesn’t care about your credit record should give you cause for concern. Ads that say “Bad credit? No problem” or “We don’t care about your past. You deserve a loan” or “Get money fast,” or even “No hassle—guaranteed” often indicate a scam.

• Fees that are not disclosed clearly or prominently. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you’re told it’s for “insurance,” “processing,” or just “paperwork.” Legitimate lenders often charge application, appraisal, or credit report fees. It’s also a warning sign if a lender says they won’t check your credit history, yet asks for your personal information, such as your Social Security number or bank account number.

• A loan that is offered by phone. It is illegal for companies doing business in the United States by phone to promise you a loan and ask you to pay for it before they deliver.

• A lender who uses a copy-cat or wannabe name. Crooks give their companies names that sound like well-known or respected organizations and create web sites that look slick.

• A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state attorney general’s office or your state’s Department of Banking or Financial Regulation.

Source: Federal Trade Commission. (2012). Consumer Information, Advance-Fee Loans.

Weiss, Joseph W.. <i>Business Ethics : A Stakeholder and Issues Management Approach</i>, Berrett-Koehler Publishers, Incorporated, 2014. ProQuest Ebook Central, Created from apus on 2019-06-15 17:18:23.

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