Even if you do your research and watch for scams, you may not be able to spot every false advertising claim. Eventually, the Center for Science in the Public Interest (CSPI) stepped in to test the claims of the manufacturers, discovering that there was no real scientific evidence to back up the claims. The company even took out a full-page newspaper ad thanking complainants for suing. Related: Rethinking Sales and Marketing in the 'Post-Truth' Era. Energy drinks company Red Bull was sued in 2014 for its slogan "Red Bull gives you wings." There are times in your marketing career where you will naturally question the ethics of a campaign, or may even be involved in something that is deemed unethical. Wal-Mart staff allegedly lied about the reasons for the price-hike, telling customers that New York has a "sugar tax," according to Corporate Crime Reporter. According to the lawsuit reported in AdAge, the "seasoning" used was oat filler which means the meat isn't seasoned beef at all, according to USDA standards. Sad but true: Your favorite foods love lying to you. Kellogg agreed to pay $2.5 million to affected consumers, as well as donating $2.5 million worth of Kellogg products to charity, according to Law360. On March 29 this year, the Federal Trade Commission (FTC) filed a lawsuit against Volkswagen, which claimed that the car company had deceived customers with the advertising campaign it used to promote its supposedly"Clean Diesel"vehicles,according to a press release. Thats when the Center for Science in the Public Interest got involved. Luminosity said in its ads that people who played the games for more than 10 minutes, three times a week would release their "full potential in every aspect of life, according to Time. It can be a daunting challenge for consumers to separate true advertising claims from false ones. However, if false advertising were obvious, it wouldnt be so successful. Taco Bell was vindicated and the lawsuit was withdrawn in April 2011, according to Associated Press. False Advertising is never a good business practice. 18 false advertising scandals that cost some brands millions, https://www.businessinsider.in/18-false-advertising-scandals-that-cost-some-brands-millions/vw-falsely-advertised-environmentally-friendly-diesel-cars-/slidelist/51630710.cms. This false advertising scandal proved a huge blow to Volkswagen; not only did the carmaker take a reputation hit and face a major FTC lawsuit, it also faced a potential $90 billion fine for violating the Clean Air Act. Eclipse gum claimed in its ads that its new ingredient, magnolia bark extract, had germ-killing properties. The company agreed to pay $4 million for false advertising claims it made about Frosted Mini-Wheats. The lawsuit against Dannon began in 2008, when consumer Trish Wiener lodged a complaint. The toning sneaker claimed to use hidden board technology and was advertised as calorie burners that activated the glutes, quads, hamstrings and calves. An ad was considered "false" if it made a claim for which there was no supportive evidence. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability. Extenze is not intended to diagnose, treat, cure, or prevent any disease. Energy drinks company Red Bull was sued in 2014 for its slogan "Red Bull gives you wings." On August 20, 2012, New Balance agreed to pay a settlement of $2.3 million, according to The Huffington Post. These Sisters Quit Their Jobs Mid-Pandemic to Risk It All for Their Brand. The supermarket chain had advertised a nationwide sale on the soft drink in 2014, where 12-packs would cost just $3.oo. Red Bull eventually settled for a $13 million payment, but said: "Red Bull settled the lawsuit to avoid the cost and distraction of litigation. In its net-zero statements, ExxonMobil makes no reference to Scope 3 emissions . Kellogg's got sued in 2013 for $4 million. People who consumed the cereal during the time the ad ran (January 28, 2009 to October 1, 2009) were allowed to claim back $5 per box, with a maximum of $15 per customer, according to Associated Press. This wasn't a simple mistake, either; Volkswagen engineered a piece of software that allowed a vehicle to detect when it was being tested and intentionally reduce harmful exhaust as a temporary measure to fool testers. Marketing of the product claimed that it helped ward off harmful bacteria and germs, preventing everyday ailments like the flu and common cold. 18 false advertising scandals that cost some brands millions Julien Rath It doesn't pay to deceive the public. The Union of Concerned Scientists estimates that Scope 3 accounts for 85% of total company greenhouse gas emissions. The tagline, which the company has used for nearly two decades, went alongside marketing claims that that the caffeinated drink could improve a consumer's concentration and reaction speed. Back in 2010, Kellogg erroneously claimed that Rice Krispies had "immune-boosting properties," allegedly because of the antioxidants, vitamins and minerals that the breakfast cereal was fortified with. The FTC started investigating Uberin 2015 and finished its investigation at the beginning of 2017. L'Oreal claimed its skincare products were "clinically proven" to "boost genes.". Equal was looking for $200 million from Splenda in the settlement for unfair profits. emissions tests on its diesel cars in the US for the past seven years, sued in 2014 for its slogan "Red Bull gives you wings.". Multiple studies cited in the resulting class-action lawsuit indicated that the shoes didn't provide any additional health benefits compared to walking shoes, and might actually lead to injury. Sourced from the FTC with creative input from FairShake. Avon China Pleads Guilty to Violating the FCPA by Concealing More Than Kellogg agreed to pay $2.5 million to affected consumers, as well as donating $2.5 million worth of Kellogg products to charity, according to Law360. Firm: Nvest Financial Group. Extenze had claimed its pills were scientifically proven to increase the size of a certain part of the male body in notorious late night TV commercials. The ad campaign also claimed that the breakfast cereal could improve child's focus by more than 20%, Customers were allowed to claim a maximum of $5 back per box, with a . Chinese Film Star Fined for Misleading Weight Loss Ads Jayson DeMers 5K Followers Companies that are genuinely dedicated to misleading consumers will go to dramatic lengths to cover up their deception. In 2013, Kellogg was in even more trouble. Though L'Oreal escaped a fine at the time, each future violation of this agreement will cost the company up to $16,000. Related: This Photo Forced Subway to Make a Major Change to its Sandwiches. LOreals claims are a classic example of how health-based brands often exaggerate or actively lie about their products abilities. In 2008, one miffed user filed a suit alleging the "deceptive" emails were false advertising. CBS noted that its website was also updated to say: These statements have not been evaluated by the Food and Drug Administration. For companies that cross the line, it can cost millions and lead to a damaged reputation. Celebrities take advantage of fans by promoting false ads The Activia ad campaign, fronted by actress Jamie Lee Curtis, claimed that the yogurt had special bacterial ingredients. The case was settled in 2011. If you have experienced a violation of your rights, call us at 323-285-3255 or fill out the form to the right . Airborne agreed to pay $23.3 million to settle a lawsuit. Julienna Law. Kellogg's popular Rice Krispies cereal had a crisis in 2010 when the brand was accused of misleading consumers about the product's immunity-boosting properties, according to CNN. On top of the fine of $45 million, Dannon was ordered to remove "clinically" and "scientifically proven" from its labels, according to ABC. ", Olay's parent company Procter & Gamble responded that it was "routine practice to use post-production techniques to correct for lighting and other minor photographic deficiencies before publishing the final shots as part of an advertising campaign.". The Three Biggest False Advertising Scandals of the Past Decade, Los Angeles Workplace Discrimination Attorney, Physical Abuse of Elders: What You Need to Know, significant fraudulent advertising charges. FTC consumer protection laws vary from state to state. China fines 15 educational firms for false advertising and fraud In 2011, consumers raised questions about what constituted Taco Bell's seasoned beef. Wrigley denied wrongdoing, but was orderedto pay more than $6 million to a fund that would reimburse consumers up to $10 each for the misleading product, in 2010. In a statement Uber said: "Weve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule.". If youre looking for something thats actually been proven to succeed, do your own research. We found 18examples of false advertising scandals that have rocked big brands some are still ongoing and not all companies have had to pay up, but each dealt with a fair amount of negative publicity. ", was accused of false advertising in 2011 overa, Uber was forced to pay $20 million to settle claims, emissions tests on its diesel cars in the US for the past seven years, Dieselgate was estimated to have reached $15 billion, selling beef contaminated with horse meat in some of its burgers and ready meals, sued in 2014 for its slogan "Red Bull gives you wings. People can be misleading in advertising. In 2013, UK supermarket chain Tesco was criticized after it ran a "misleading" ad campaign in the wake of its horse meat scandal, according to The Telegraph. Ash Jurberg 13.2K Followers https://bit.ly/3EWjfmX More from Medium Fatima in Make Money While You Sleep: 9 Best Digital Products to Sell Mark Schaefer False advertising is marketing a product with misleading or blatantly false claims to convince people its a better option than the competition. CBS noted that its website was also updated to say: "These statements have not been evaluated by the Food and Drug Administration. In an attempt to recover from the PR disaster, Tesco ran a two-page spread in national newspapers with the headline What burgers have taught us. On top of the fine of $45 million, Dannon was ordered to remove clinically and scientifically proven from its labels, according to ABC. The phone call awoke Pras Michl in the middle of a spring night in 2017. Though this may not be a marketing strategy per se, mistreating and threatening your employees to create an unethical ad for you is not the way to market your product this 2022. The lawsuit against Dannon began in 2008, when consumer Trish Wiener lodged a complaint.