Inetnational business law

Advertising is an impersonal selling and communication method which makes use of various types of media to reach the target public in short time. Advertising aims at gaining exposure, creating awareness, changing attitudes of target customers in favor of sponsors product and services and also at effecting sales and improving corporate image. Advertisement is a popular method of marketing communication. Lot of efforts are put to encourage the advertised product starting from gaining the customer’s attention to the products to inculcate a desire in him to possess the product.

It must be capable of arresting attention, inspiring interest, creating desire and precipitating action among the target customers. In the present scene it is the need to satisfy curiosity of the observer who wants to avail the offer. Only the selected few will go deep into the copy, filter it to his requirement and take the balance quantity left to gauge as to how far it will serve his purpose. Though it is meant for the selected few, it is not known how many persons are finally going to select the scheme and the quantum of revenue it is going to generate. Strategic Advertising Penetration Methods

Media planning includes decisions relating to which media should be used and when and how often should advertisements be placed in the selected media. The basic purpose of advertising planning is to optimize the communication reach to the relevant audience within the available budget. Effective and efficient adverting rests on decisions based on collecting data from appropriate internal and external sources. INTERNATIONAL LAWS ON ADVERTISEMENT DECISIONS Promotional mix which includes advertising is an element of the marketing mix with respect to which it is essential for the respective company to know the implications of its own decisions.

The company has to be particularly careful with the legal implications of objectionable promotion. To be on the safe side the marketer must satisfy’ himself on three counts in  respect of persuasive communication, viz. • Is the message or communication fraudulent? • Does the message or communication misrepresent? • Is the message or advertisement opposed to public policy? The specific legal constraints which affect decision-making in the area of promotion are as under. The following arrangement are taken on a broader prospective .

•  Income-tax Act • Trade and Merchandise Marks Act • Prevention of Food Adulteration Rules • Standards of Weights and Measures Rules • Drugs and Magic Remedies Act • Sales Promotion Employees Act Unfair Trade Practices The  international law  have highlighted the need for introduction of suitable provisions to curb unfair trade practices with a view to protect the consumers from practices adopted by  trade and industry by way of resorting to misleading advertisements and sales promotion techniques thereby duping the consumers.

This lead to include the relevant rule  for the purpose of understanding the main provision relating to unfair trade practices. Unfair Trade Practice Means a trade practice which for the purpose of promoting the sale use or supply of any goods or for the provision of any services adopts any unfair method or unfair or deceptive practice including any of the following practices, namely: A) The practice of making any statement orally or in writing or by visible representation which i) Falsely represents that the goods are of a particular standard quality, quantity, grade, composition, style or model;

ii) Falsely represents that the services are of a particular standard, quality or grade; iii) Falsely represents any rebuilt, second hand, renovated, reconditioned or old goods as new goods; iv) Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have; v) Represents that the seller or the supplier has the sponsorship or approval or affiliation which such seller or supplier does not have;

vi) Makes a false or misleading representation concerning the need for or the usefulness of any goods or services; vii) Makes to the public a representation in a form that purports to be (a) a warranty or guarantee of a product or of any goods or services; or (b) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee of promise will be carried out;

viii) Materially misleads the public concerning the price at which a product or like products or goods or services, have been, or are, ordinarily sold or provided, and, for the purpose, a representation as to price shall be deemed, to refer to the once at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made; ix) Gives false or misleading facts discouraging the goods, services or trade of another person.

A statement, made in any one of the following ways, shall be deemed to be a statement made to the public by the person who had caused such statement to be made, viz: * expressed on an article, offered or displayed for sale, or on its wrapper or container, *expressed on anything attached to, inserted in, of accompanying such an article, or anything on which such an article is mounted, and * contained in or on anything that is sold sent, delivered, transmitted or in any other manner what so ever made available to a member of the public.

B) Permits the publication of any advertisement in any form, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price. C) Permits: a) the offering of gifts, prizes or other items with the intention of not providing them as offered, b) the creation of impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole, and

c) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest. D) Permits the sale of supply of goods intended to be used, or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, construction, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods.

E) Permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale, or to provide any service, if such hoarding or destruction or refusal raises or trends to raise or is intended to raise, the cost of those or other similar goods or services.

If on an inquiry the international law finds that the practice is prejudicial to the public interest or to the interest of any consumer(s) generally, it may pass a cease and desist order and declare such agreement void or modify it, Expenditure on Advertising The provisions of the Act keep a check on the advertising expenditure and expenditure on distribution of samples by limiting the deduction from the income of the company.