When is advertising misleading?
A company may slightly exaggerate products or services. However, advertising must not mislead consumers. There are clear legal rules that a company must follow.
When is advertising misleading?
Advertising is misleading if a company gives incorrect, incomplete, or suggestive information about a product or service, and this information influences the consumer’s buying decision.
In that case, the company acts against the law.
Advertising is misleading when:
- the information about the product or service is not correct;
Example: a company advertises a television as “4K Ultra HD” while it is only HD Ready. - important information is hidden or left out;
Example: a company claims there is sufficient stock, while only five items are available. - the information does not reflect the real situation;
Example: a company claims its product is better than a competitor’s product without factual proof.
What factual information must a company provide?
A company may not provide misleading information about the following points:
1. What the product or service offers and how it can be used
- What the product is (for example, a “leather bag” must actually be made of leather);
- What the service actually delivers (for example, an educational program must provide a valid and accurate diploma or accreditation);
- What the product contains (such as the composition: 100% stainless steel or 18-carat gold);
- How many items the consumer receives (for example, 50 nails);
- The quality and characteristics (for example, that a raincoat is truly waterproof, or that after a language course you can speak fluent English);
- What the product can be used for (for example, the pan is suitable for induction);
- How long the service will take (for example, repair within 24 hours).
2. Where the product comes from and how it is made
A company must clearly state:
- Where the product comes from (for example, “Made in Aruba”);
- How the product is made (for example, by hand or by machine);
- When the product was made (for example, not presenting second-hand products as new).
3. How much stock is available
A company may not claim that there is sufficient stock if this is not true. A company may also not claim that a product is almost sold out while a large quantity is still available.
4. The price or how the price is calculated: the price you state must be correct
The price stated must be correct and clear.
- No additional or hidden costs (for example, administration fees that are only communicated to the consumer later);
- No fake offers (for example, claiming that a product previously cost AWG 100 when this was never the case);
- Clear information about the reason for the offer (for example, a special promotion or a clearance sale because the season is over).
5. Reviews and distinctions
A company may not give false information about:
- awards or prizes the product has won;
- customer ratings or reviews
(only real customer experiences may be used); - scientific terms or figures
(for example, “clinically proven” without evidence).
6. Conditions for delivery or payment
A company must clearly state:
- how the product will be delivered
(for example, free delivery or paid delivery); - how the consumer can pay
(cash, in instalments, or in one single payment).
7. Warranty duration and coverage
Warranty information must be honest and clear.
- If a company states “2 years warranty,” the warranty must last two years.
- The company must clearly state which parts are covered and which are not.
8. Who makes or offers the product
It must be clear who is responsible for the product. A company must state:
- who made the product or who the manufacturer is;
- whether the product was made under expert supervision or meets a quality mark
(for example, CE marking).
9. Comparison with other products
Advertising may not unfairly criticize or compare products. A company may not claim that its product is better than another product without evidence.
10. Reason or purpose of the offer
A company must honestly state the reason for an offer.
Examples:
- the product is being discontinued;
- only a limited number of products are left in stock.
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