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April 25, 2024, 08:23:10 am

Author Topic: Is puffery illegal?  (Read 1530 times)  Share 

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Rikahs

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Is puffery illegal?
« on: October 18, 2016, 05:21:41 pm »
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Puffery is considered an unethical business activity under "truth and accuracy in advertising" but I was wondering whether it would also be considered illegal because isn't it also misleading ?
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isaacdelatorre

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Re: Is puffery illegal?
« Reply #1 on: October 18, 2016, 09:45:02 pm »
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Puffery is considered an unethical business activity under "truth and accuracy in advertising" but I was wondering whether it would also be considered illegal because isn't it also misleading ?

Hey there,

Whilst puffery is considered 'unethical' it is a legal business practice. Since it is basically exaggeration - it can be used as a sales technique but is only considered puffery if it cannot be objectively verified. As such, there is a fine line between puffery and misleading advertising which can result in prosecution and punishment.

If you really want to get further into it, "In 2000, Pizza Hut brought a lawsuit against Papa John's challenging whether Papa John's advertisements were puffery or false advertising. The Fifth Circuit Court of Appeals considered Papa John's ad that stated "Better ingredients. Better Pizza." The court's judgment found that that statement standing alone was not a verifiable fact that would be relied upon by consumers and, therefore, was mere puffery."

Hope this helps :)

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Rikahs

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Re: Is puffery illegal?
« Reply #2 on: October 18, 2016, 11:29:55 pm »
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Did you just find that case from a document/notes or did you go research it online?

Nonetheless, YOU'RE A LEGEND!!
Thanks for all the help on the questions, you're gonna absolutely rek business stds.
« Last Edit: October 18, 2016, 11:36:30 pm by Rikahs »
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jamonwindeyer

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Re: Is puffery illegal?
« Reply #3 on: October 18, 2016, 11:39:12 pm »
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Did you just find that case from a document/notes or did you go research it online?

Nonetheless, YOU'RE A LEGEND!!
Thanks for all the help on the questions, you're gonna absolutely rek business stds.

Isaac is a walking (or at least typing) legend ;)

pughg16

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Re: Is puffery illegal?
« Reply #4 on: October 19, 2016, 03:24:57 pm »
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Hey there,

Whilst puffery is considered 'unethical' it is a legal business practice. Since it is basically exaggeration - it can be used as a sales technique but is only considered puffery if it cannot be objectively verified. As such, there is a fine line between puffery and misleading advertising which can result in prosecution and punishment.

If you really want to get further into it, "In 2000, Pizza Hut brought a lawsuit against Papa John's challenging whether Papa John's advertisements were puffery or false advertising. The Fifth Circuit Court of Appeals considered Papa John's ad that stated "Better ingredients. Better Pizza." The court's judgment found that that statement standing alone was not a verifiable fact that would be relied upon by consumers and, therefore, was mere puffery."

Hope this helps :)

Could this case also be used for Legal Studies in the consumers elective?

isaacdelatorre

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Re: Is puffery illegal?
« Reply #5 on: October 19, 2016, 08:32:01 pm »
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Could this case also be used for Legal Studies in the consumers elective?

Hey,

I don't personally do the consumer elective; but after quickly scanning the syllabus, this could fit into the regulation of marketing and advertising dot point :)

HSC 2016:   ATAR: 99+
Mathematics - 97    Economics - 96     Legal Studies - 95     Advanced English - 91    Business Studies - 95

2017: B Commerce/B Law @ UNSW