However, another view is that most companies value their reputation and would not endanger their goodwill by making false claims.Moreover,action by enforcers like regulatory bodies or private lawsuits by competitors-even if penalties and damages are not ordered-are costly. Investigations by regulatory bodies or private lawsuits can easily exceed the profits derived from deceptive marketing. Such suits distract company execuitives, further increasing the cost of an ad already challenged as deceptive. These costs damage the reputation and goodwill, result in exorbitant legal fees and distract company executives.Therfore such repercussions induce the marketers to carefully review their ad claims and ensure that they are true and fully substantiated.
Anti tobacco campaigns accelerated in the late eighties when litigation exposed a long history of deceit carried out by industry officials regarding their knowledge about the damaging health effects of tobacco use including the deliberate use of new ingredients to enhance the addictive power of cigarettes. ...Show more