Question

Which of the following statements can correctly be made about attaching a specials label to a product?

1. The specials label is required for all products, regardless of promotions.
2. The label should include false information to attract more customers.
3. The label must accurately represent the special features, prices, and expiration dates.
4. Attaching the label is optional and does not impact customer perception.

Answer 1

The correct statement regarding attaching a specials label to a product is that it must accurately represent the product's features, prices, and expiration dates. Misleading or fraudulent information is illegal as per FTC regulations, which underscores the importance of truthful advertising practices for businesses.

Step-by-step explanation:

When it comes to attaching a specials label to a product, the correct statement is that the label must accurately represent the special features, prices, and expiration dates. This is imperative because businesses are regulated by laws that require truthful representations of products and services. For example, the Federal Trade Commission (FTC) regulary checks claims about product performance to ensure that they are not misleading or fraudulent. Additionally, nutritional facts on packaged foods and other disclosures are mandated to provide consumers with accurate information to make informed purchasing decisions.

It is illegal to include false or misleading statements in advertising as they could be considered fraud. Contrary to some beliefs, attaching a label is not optional if the label provides necessary information about the product that could affect consumer perception or decision making. An old Latin saying, Caveat emptor, applies when watching advertisements, meaning 'let the buyer beware,' underscoring the importance of consumer diligence.