Unfair trade practices

Understand the various social problems and learn to act ethically.

1. UNFAIR TRADE PRACTICES

2. Unfair trade practices It refers to using various deceptive and unethical methods to obtain business . An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method. False advertising, tied selling. It relate to production, marketing, advertisement, import/export and services.

3. 1.False Representation Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or mode. Gives any warranty or guarantee of the performance, that is not based on an adequate or proper test.

4. 2.False Offer of Bargain Price Where an advertisement is published in a newspaper or otherwise, whereby goods or services are offered at a bargain price when in fact there is no intention that the same may be offered at that price.

5. 3. Free Gifts Offer and Prize Schemes Offering any gifts, prizes or other items along with the goods when the real intention is different. Many non-branded, ISO, ISI, IFO standardized products are marketed in the guidance of branched products. Fault advertisement in TV (health drinks, Shampoo, Beauty creams, etc.) Not properly packing.

6. 4. Photo retouching Often used in cosmetic and weight loss commercials, these adverts portray false and unobtainable results to the consumer and give a false impression of the product's true capabilities

7. 5. Omitting information An ad may omit or skim over important information. The ad's claims may be technically true, but the ad does not include information that a reasonable person would consider relevant. For example, TV advertisements for prescription drugs may technically fulfil a regulatory requirement by displaying side-effects in a small font at the end of the ad, or have a "speed-talker" list them.

8. 6. Hidden fees and surcharges Hidden fees can be a way for companies to trick the unwary consumer into paying excess fees (for example tax, shipping fees, insurance etc.) on a product that was advertised at a specific price as a way to increase profit without raising the price on the actual item.

9. 7. Manipulation of measurement units and standards Manipulation of measurement units and standards can be described as a seller deceiving customers by informing them with facts that either are not true or are using a standard or standards that wouldn’t be widely used or understood which results in the customer being misinformed or confused.

10. How to Combat this unethical issues (A Powerful Punch 5 P's) P revention - Strong internal controls reviewed by competent and independent external auditors. P ower - Legislation P rofessionalism - A better educated, skilled, trained, experienced and independent accounting profession P rosecution - Aggressive prosecution of white collar criminals. Such criminals must know that they will be prosecuted for their actions. P rison - Strong punishment and accountability for those convicted of white collar crimes. Such criminals must be held fully accountable for their actions

11. Thank you