Puffery

• This is biased information, but recognized

and accepted by industry, regulators and
consumers. the legitimate exaggeration of
advertising claims to overcome natural
consumer scepticism.its done to make
your product look better than that of the
competition.
• Puffery as a legal term refers to
promotional statements and claims that
express subjective rather than objective
views, such that no reasonable person
would take them literally. Puffery is
especially featured in testimonials.
 Origin
• The term originated in the English Court of
Appeal case Carlill v Carbolic Smoke Ball
Company,
• It centred on whether a monetary reimbursement
should be paid when an influenza preventative
device failed to work.
• The manufacturers had paid for advertising
stating that £100 would be paid in such
circumstances, then failed to follow this promise.
• Part of their defence was that such a statement
was "mere puff" and not meant to be taken
seriously.
 Contd…
• While the defence ultimately lost the case,
the principle was confirmed that certain
statements made by advertisers, that were
obviously not made in a serious manner,
could be exempt from usual rules relating
to promises in open contracts.
• Puffery often uses the superlative form of
a word, like "best" or "greatest".
Where substantiation is needed
• A company making a superlative claim such as
"cheapest" or "safest" usually has to
substantiate such competitive claims.

• Merchants must exercise extreme caution when

making statements about the quality, condition,
or facts about their products or services.

• A slight variation in wording may result in an

express warranty.
 United States Federal Trade
Commission’s definition
• A term frequently used to denote the
exaggerations reasonably to be expected
of a seller as to the degree of quality of his
product, the truth or falsity of which cannot
be precisely determined.
 Federal Trade Commision
• The FTC stated in 1984 that puffery does
not warrant enforcement action by the
Commission. In its FTC Policy Statement
on Deception, the Commission stated:
"The Commission generally will not pursue
cases involving obviously exaggerated or
puffing representations, i.e., those that the
ordinary consumers do not take seriously."
• The national Conference of
Commissioners on Uniform State Laws is
considering amending the Uniform
Commercial Code to ease the way for
suits against advertisers who use puffery.
Because all states, save Louisiana, have
adopted the UCC,
• This proposal will make nearly every firm
in America the target of costly litigation.
 Some Great Quotes
Advertising is an instrument in the hands of
the people who use it. If evil men use
advertising for base purposes, then evil can
result. If honest men use advertising to sell
an honest product with honest enthusiasm,
then positive good for our kind of capitalistic
society can result.“
- John W.
Crawford.
• History will see advertising "as one of the real
evil things of our time. It is stimulating people
constantly to want things, want this, want that." -
Malcolm Muggeridge.
 What is puffery?
Historically, claims that were "mere
exaggerations" or "hyperbole" were considered to
be puffery, and therefore not deceptive. Terms
like "the best" or "the greatest" were sales talk,
and the FTC would not regulate them. After all,
everyone knows that "Wonder Bread" is not really
a wonder, and "The Greatest Show on Earth" is
not what everyone considers the greatest.
Puffery, therefore, was a form of opinion
statement, and considered unregulable.
 WE DON'T TRUST ADS

A worldwide survey of consumers found

that 72 percent believe marketers
exaggerate health benefits of their
products. And 70 percent are convinced
that marketers brainwash children. Only
38 percent agreed that marketers give
consumers accurate information.
 Tobacco and Alcohol- Are They Ethical?
• Tobacco and alcohol advertisements are
extremely popular targets for regulation.