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Marketing

01 Apr 2008

I am a manufacturer of toothpaste, I want to advertise on the packaging of our new toothpaste, "Purely White" that it "lasts 12 hours". What are the implications of doing this?

Information printed on the packaging often influences a consumers decision whether to purchase a good. When making a claim on the quality of your product, you must ensure that it does not mislead or deceive consumers. This requirement under the Fair Trading Act ensures that consumers can rely on the information provided on the packaging.

The Commission has upheld a number of complaints about products which have made misleading statements on their packaging. They found that a drink contained no detectable level of vitamin C, contrary to what was claimed in the advertising. Similarly, a recent investigation by the Commission found that certain sunscreens failed to meet the advertised SPF claim on the packaging.

If you base your advertisement on a test result, then the test conducted must support the claim you attribute to it. The test used should preferably be conducted by an independent organisation and be based on recognised scientific or statistical methods. The ASCB upheld a complaint against a cosmetics company regarding a print advertisement for "wrinkle decrease" face cream. The advertisement claimed "clinically proven results". It was discovered that the survey was based on consumer evaluations of 50 female customers. The ASCB found that the advertisement implied that the product had been subject to a more rigorous scientific survey rather than a customer survey. This case shows the importance of making sure any statement you make on your packaging is accurate.

If your claims on the packaging are misleading you may face criminal prosecution, fines of up to $60,000 for an individual and $200,000 for a company, or an order to publish corrective advertising, compensation, repairs or refunds.

In the case of "Purely White", it is vital that you substantiate your claim that the toothpaste lasts 12 hours by undertaking scientific testing. This will help to minimise the risk of misleading the consumer and reduce your chances of being fined.