Thursday, November 26, 2009

Deceptive practices:

Deceptive practices fall into three groups which are as follows:
  • Pricing: Deceptive pricing includes the pricing of goods and services in such a way as to cause a customer to be misled.e.g: Savings claims, price comparisons, "special"sales, "two for one"sales, factory prices or wholesale prices.
  • Promotion: It includes practices such as misrepresenting the product's features or performance or luring the customers to the store for a bargain that is out of stock.e.g: the offer from United Airlines for flying 6 round trips between a specific period of time, in order to earn 3 confirmed regional upgrades to first class.
  • Packaging: It includes exaggerating package contents through subtle design, using misleading labeling or describing size in misleading terms.e.g: Bounty napkins, they shrank from 200 napkins to 180 with the same look. Another example is that Pampers size 3 now has 8 less diapers yet the packaging is identically virtual.