PRODUCT
MISREPRESENTATION
& CAVEAT EMPTOR
MISREPRESENTATION
o is observed when there is a transformation of information to
misinformation.
o To represent incorrectly, improperly, or falsely.
Two types of misrepresentation
1. INTENTIONAL MISREPRESENTATION – A 2. UNINTENTIONAL MISREPRESENTATION – A
SCENARIO WHEREBY THE PERSON IS FULLY AWARE SCENARIO WHEREBY THE PERSON IS NOT AWARE
OR DELIBERATELY MISREPRESENTS THINGS, AND DOES NOT DELIBERATELY ACT ON
COMMONLY KNOWN AS LYING .
MISREPRESENTING THINGS
Lying
TYPES OF LYING:
1. Use of ambiguous terms - Is the act of deliberately using
vague terms or open-ended statements that can have several
meanings to mislead people that one is telling the truth.
2. Use of false statements - Is the act of making a statement
from which false conclusions may be drawn, eventually
misleading others. This type of lying is often observed in
advertising a product to be the “best-seller” brand.
Lying
3. Lying through action - Is a type of lying where the person gets caught in
the act of wrongdoing.
4. Suppression of correct information - Is an intentional or unintentional act
of hiding the correct information which eventually misleads others.
- observed in some crime scenes wherein a witness conceals the truth from
the investigating body for the sake of his own security or the unwillingness
to be involved in the crime.
Business Practices Involving Misrepresentation
and Lying
Direct misrepresentation - is characterized by actively
misrepresenting something about the product or service. It gives the
business a bad name because deception and lying are used in the
process of selling the product to the customers.
A. DECEPTIVE PACKAGING - The objective is to create an
impression wherein the buyers or the end users will see an
improvement, either by size or by weight without any change in price
DECEPTIVE PACKAGING
Direct misrepresentation
ADULTERATION
unethical practice of corrupting a
genuine commodity by imitating or by
adding something to increase its bulk
or volume, or even by substituting an
inferior product for a superior one for
the purpose of profit or gain.
Direct misrepresentation
MISBRANDING OR MISLABELING
Is the act of copying a product’s
design to the closest possible
way giving an impression that it
is the same with the leading
brand.
Short-Weighing
It can be easily spotted in wet
and dry markets. Weighing scales
are easily tampered by
intentionally offsetting the
calibration of the dials. It is
practiced in selling products by
manufacturers packing products
in bulk.
Short-Changing
taken directly from a situation
where the seller gives the
customer less than the change
he should get. When the buyer
receives less than what should be
taken, the buyer is being
shortchanged.
Kenyan Bakers Short changing
Consumers with Underweight Bread
SHORT MEASURING - Is an unethical
practice observed in products that Short Numbering – The seller gives
depend on length and/or volume. The the consumer the quantity by
meter stick or standard is shorter than
the real length or smaller in volume than
piece of the product less than the
the standard. It is sometimes observed in number he has paid for.
textile markets and electrical shops.
MISLEADING ADVERTISEMENT
any representation or symbol that
would cause a significant number of
the general or relevant public to
misunderstand or make incorrect
decisions, regardless of whether such
representation or symbol is consistent
with facts.
INDIRECT MISREPRESENTATION
It is passive deception and not as obvious compared to direct
misrepresentation. But it still contributes to the impression that
businessmen are liars and are out to make quick money.
INDIRECT MISREPRESENTATION
Deliberately withholding information in Business ignorance is a form of passive
any business transaction is also an deception because the businessman is unable
unethical practice. – All parties should be to provide the customer with the complete
involved in all business transactions must information, he needs to make a fair decision.
know exactly what they are giving away or It is the duty of the businessman to know the
receiving in return, in order to be fair. nature of the product he is selling, the goods
Honesty must always be observed in any in the market and what goods are really the
business transaction best at what price.
