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Chapter 26: Deceptive Sales Practices

Chapter 26: Deceptive Sales Practices. With a partner…. How can sales be deceptive ? Come up with a list of all deceptive sales you have seen. Where are these ads located? Are all these ads illegal? Explain . Should companies be able to exaggerate their product? Why/why not?

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Chapter 26: Deceptive Sales Practices

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  1. Chapter 26: Deceptive Sales Practices

  2. With a partner… • How can sales be deceptive? • Come up with a list of all deceptive sales you have seen. • Where are these ads located? Are all these ads illegal? Explain. • Should companies be able to exaggerate their product? Why/why not? • Did you ever buy something because the salesperson built it up to be great; but it turned out to be average?

  3. Door to Door and Phone Sales • If you purchase something from a door to door salesman, you have 3 days after the sale ($25+) to notify the company in writing that you want to cancel the contract. • DO NOT give your credit card number to a phone salesman. • Go to www.donotcall.gov to have your number removed from call lists

  4. Regulations for Phone Sales • They can only call between 8am and 9pm • Once you ask a telemarketer not to call you, its illegal for them to call again. • Prerecorded voice calls are prohibited • They must tell you who is calling and that it is a sales call. • They must tell you the total cost of the products and restrictions before you pay • For prize promotions, they must tell you the odds of winning and conditions for receiving the prize. • Its illegal for them to lie about information.

  5. Referral Sales • When a seller offers a customer an incentive for referring potential customers but only gives the customer the sale if their referral leads to a sale too. • These are legal unless the seller offers up false information

  6. Advertising and the Consumer • The 1st Amendment protects advertising as a form of free speech but the government can regulate and prohibit certain types of advertising. • Remember censorship?

  7. Tobacco Advertising • Federal law now requires a surgeon general’s warning on cigarette packages, bans cigarette advertising on the radio and TV, and requires an annual report on the health consequences of smoking.

  8. As a result of a law suit in 1998, tobacco advertisements are restricted from billboards and transit systems, and they cannot use cartoon characters that appeal to children.

  9. Corrective Advertising: Requires any false claim in an ad be admitted and corrected in all future ads for a period of time

  10. Puffing • Puffing: an advertisement based on a seller’s opinion, personal taste, or obvious exaggeration (this is NOT illegal!)

  11. Bait and Switch • Occurs when a seller uses a cheap item (usually in limited quantities) to lure/”bait” a customer into the store…then the salesman “switches” them to a more expensive product.

  12. Internet Shopping • Protect yourself on the internet/online auctions… • Research the product • Understand the rules of the auction site • Establish a top bid and stick to it • ID and read reviews on the seller • Evaluate the methods of payment • Is there a warranty?

  13. Every Ad says each sale excludes Items, although they say “ALL…” on sale.

  14. Deceptive Advertisements

  15. Old Cigarette Advertisement from the 1960’s http://www.youtube.com/watch?v=TD8Km2LXyng&feature=fvst

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