Question

Scenario:

Your vendors have instructed you to advertise their new building as ‘Apartments starting from $200,000’ but the lowest priced one is now sold. They instruct you not to change the signboard so as to attract more enquiries, even though the lowest priced apartment is now $280,000.

Identify and explain the ethical issue in this scenario, quoting any relevant legislation:

A potential buyer has contacted you regarding the advertised apartment and has lodged a formal complaint to your agency principal that you have misled them by advertising a lower price.

How do you record the complaint details?

Answer 1

"Starting at $200,000"? Bait and switch alert! That low price vanished quicker than a hot pizza. Misleading ads bite the dust – laws like the FTC in the US won't tolerate it. Record complaints, act fast, switch tactics: honest ads, happy customers.

Ethical Issue:

The scenario presents a clear ethical issue related to deceptive advertising.

Misleading information: Advertising apartments "starting from $200,000" when the lowest available starts at $280,000 is misleading and inaccurate. This potentially creates false expectations and attracts interest under false pretenses.

Bait and switch tactic: This advertising approach might be perceived as a bait and switch tactic, luring potential buyers with an unattainable price and then pushing them towards higher-priced options.

Consumer protection laws: Most countries have consumer protection laws prohibiting false or misleading advertising practices. In the US, for example, the Federal Trade Commission (FTC) enforces the Truth in Advertising laws, which protect consumers from deceptive marketing.

Relevant Legislation:

Depending on your location, various legal frameworks could apply:

• US: Federal Trade Commission (FTC) Truth in Advertising Laws
• UK: Consumer Protection Act 1996
• Australia: Australian Competition and Consumer Commission (ACCC)
• EU: Unfair Commercial Practices Directive 2005/29/EC

Recording the Complaint Details:

When the potential buyer files a formal complaint, it's crucial to document it accurately and promptly. Here's how to record the details:

1. Date and Time: Note the date and time the complaint was received.
2. Contact Information: Record the complainant's full name, contact details (phone, email), and preferred method of communication.
3. Detailed Description: Capture the complainant's specific allegation. Include a direct quote of their complaint about the misleading advertisement and the advertised price vs. the actual price encountered.
4. Actions Taken: Document any actions taken upon receiving the complaint, such as informing your agency principal, contacting the vendor, or initiating an internal investigation.
5. Outcome: Keep track of the resolution process and document the final outcome of the complaint (e.g., if the vendor changes the advertisement, offers compensation to the complainant, etc.).

Recommendations:

• It's crucial to advise your agency principal immediately about the complaint and the ethical implications of the vendor's instructions.
• Do not engage in deceptive practices. Inform the vendor about the potential legal and ethical violations associated with their advertising approach.
• Suggest revising the advertisement with accurate price information to avoid further complaints and maintain ethical marketing practices.
• Document all communication with the vendor and the complainant to maintain a clear record of events.

Remember, ethical advertising practices not only ensure compliance with legal regulations but also build trust and credibility with potential customers.