Now PepsiCo is suing - saying, among other things, that the ad misleads consumers into thinking that Gatorade is "incomplete".
Dairy farmers say the practice misleads consumers into thinking that nondairy milk is nutritionally similar to cow's milk.
Critics of native advertising say the practice can sometimes mislead consumers into thinking what they are reading is, in fact, editorial and not a paid sponsorship.
Gaucho Rasmussen, an OFT director, said: "OFT research has found that reference pricing can mislead consumers into thinking the item they have bought is of higher value and quality".
Advertising, labels and packaging for the popular new Smirnoff Ice malt alcohol beverage are being referred for scrutiny to two federal agencies after a competitor complained that those marketing materials mislead consumers into thinking it contains Smirnoff vodka.
G.M. aired commercials featuring its chief executive, Edward E. Whitacre Jr., highlighting the loan repayment, but critics, including some members of Congress, accused the company of misleading consumers into thinking all $50 billion given to the company by the United States Treasury had been repaid.
[C8.] Inquiry Into Smirnoff Promotion Advertising, labels and packaging for the popular new Smirnoff Ice malt alcohol beverage are being referred for scrutiny to two federal agencies after a competitor complained that those marketing materials mislead consumers into thinking it contains Smirnoff vodka.
Gaucho Rasmussen, the OFT's director, said: "OFT research has found that reference pricing may mislead consumers into thinking the item they have bought is of higher value and quality, pressure them to buy there and then so they don't 'miss out' on the deal and also impair their judgment, as buying an item immediately means they do not get the chance to search the market for the real best deals.
What's not legal is for restaurants to mislead consumers into thinking they are buying the genuine article from Japan when they are not, and this has been the basis for several class action suits against higher-end chains, but it's hard to see how any use of the words Kobe beef on a menu are not an attempt to mislead and defraud diners.
As there is no legal definition, the term is pretty much a blank check for food manufacturers to mislead consumers into thinking they are buying something better--when they are not.
Retailers add their own enormous mark-ups to Fairtrade products and mislead consumers into thinking that all of the premium they are paying is passed on.
