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False Ad



Time and time again, I hear about various deceptions from companies and products old and new. But as we all know, as time has the privilege to progress, so will the complexity of persuasion. It is a common practice for brands and labels to push the limits of trust between themselves and the consumer. It isn’t ethical to persuade to the point of lies, but what is even worse is the power of the bandwagon. Bandwagon hype usually stems from the popularity of the product or the person/entity representing it. The bandwagon could be so influential to the point that quality is completely thrown out of the window, and the consumer will purchase and promote an idea simply because of the clout behind it. TruthInAdvertising (TINA.org) provided a warning to 5 different ad trends that consumers and investors should look for in our current year.

The idea of cryptocurrency really boomed over the last couple of years, but just as any young concept should be partaken with caution, things like Bitcoin and Ethereum are definitely no exception. Back in 2018, well-known music producer and content influencer DJ Khaled decided to bring attention to something called The Centra Card & Centra Wallet. Where Khaled’s attempt failed, is when is neglected to include his unlawful receiving of an ICO (Initial Coin Offering) of at least $50,000 from Centra Tech. The problem with this transaction is Khaled's promotions came after the SEC issued its DAO Report in 2017 “warning that coins sold in ICOs may be securities and that those who offer and sell securities in the U.S. must comply with federal securities laws.” In April 2018, the Commission filed a civil action against Centra’s founders, alleging that the ICO was fraudulent. The U.S. Attorney's Office for the Southern District of New York filed parallel criminal charges. How’s that for a “game changer”? Another line of reveal can be seen in the area of homeopathic products over their efficiency. Homeopathy is the treatment of disease by minute doses of natural substances that in a healthy person would produce symptoms of disease. In other words, it is an alternative medical process that claims that a substance that causes the symptoms of a disease in healthy people would cure similar symptoms in sick people. The fanbase for the homeopathic products began to increase around 2016, but subsequentially so did the concern of the FTC (Federal Trade Commission). According to scientists and the FTC, for the vast majority of over-the-counter homeopathic drugs, the policy statement notes, “the case for efficacy is based solely on traditional homeopathic theories and there are no valid studies using current scientific methods showing the product’s efficacy.” As such, the marketing claims for these products are likely misleading, in violation of the FTC Act. As a result, the lack of scientific evidence provided forced the different brands to display that : (1) “There is no scientific evidence that the product works” and (2) “the product’s claims are based only on theories of homeopathy from the 1700s that are not accepted by most modern medical experts.”

Moving right along to the infamous CBD (Cannabidol) wave. The FDA (Food and Drug Administration) announced in June of last year that it had approved the “first drug containing cannabidiol” or CBD for epilepsy. That may have unwittingly sent a message to marketers of CBD products that they were free to market their products using unproven health claims. Many CBD proponents, including distributors for an multi-level marketing company called HempWorx that TINA.org investigated last year, not only improperly claim that CBD treats, cures, and mitigates a plethora of diseases but also that selling cannabis is perfectly legal in the U.S. Yet the DEA (Drug Enforcement Agency) still classifies all cannabis extracts as Schedule 1 controlled substances, the same category as heroin, despite its legalization in several states.

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