Advertising
How can a company advertise?
A company can advertise in many ways to reach potential customers. Consumer protection law sets clear rules for advertising.
A company acts unlawfully if a public statement or message about a product or service is misleading in any way. This includes incorrect or unclear information about, for example:
- the nature or composition of the product or service;
- the quantity or availability;
- the price or how the price is calculated;
- characteristics or possible uses;
- origin, method, or time of production;
- stock size or availability;
- the reason or purpose of the offer;
- technical test results or statistical data;
- the scope, content, or duration of a guarantee;
- awards or certificates;
- comparisons with other goods or services.
These rules apply to all forms of advertising, including:
- Advertisements in newspapers, magazines, or online;
- Advertising leaflets, brochures, and posters;
- Spoken advertising, for example at markets or street sales or on the radio;
- Information on product packaging.
Misleading advertisements
Some companies use misleading information to make products or services look more attractive. Price deception and false scarcity are common practices.
Examples include:
- Fake discounts
A company advertises a discount based on an artificially increased original price. - Fake temporary promotions
A company presents a promotion as temporary, while it continues for a long time or returns repeatedly. - Bait products
A company advertises products at very attractive prices that are not available or are only available in very small quantities. The main goal is to attract consumers to the store, not to sell the advertised product.
Example: “Up to 70% off, this weekend only,” while the best offers are already sold out or were available in very limited numbers. - False scarcity
A company claims an offer is available “today only” to pressure consumers to buy quickly, while the same offer later returns under a different name.
Note:
A personal, one‑to‑one message from a company to a single consumer, which is not shared with others, is not considered advertising.
Advertising on behalf of others
Not only the company itself, but also others who advertise on its behalf must follow the advertising rules. They may also be held responsible for misleading advertising. Misleading advertising can damage both consumer trust and the company’s reputation.
Examples include:
- advertising agencies that create misleading advertisements;
- media outlets, such as newspapers, TV channels, or websites, that publish misleading advertisements;
- influencers or other third parties who promote products using misleading information.
