Note on the need for rules on misleading representation based on experimental evidence

Koki Arai

Applied Economics Letters, 2013, vol. 20, issue 1, 10-17

Abstract: This article examines the rules for misleading representation with an experimental approach using Internet questionnaire data from a recent research article. The findings indicate that consumers who have been closely associated with the goods or who fully intend to purchase the goods are highly likely to understand any (alleged) deceptive advertising. Therefore, advertising regulations should protect marginal consumers from deceptive advertising rather than the actual or potential purchasers. The findings therefore corroborate the inducing requirement of the rules for misleading representation presently applied in Japan and other countries.

Date: 2013
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DOI: 10.1080/13504851.2012.665591

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