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

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.

Keywords:

• deceptive advertising
• experimental evidence
• misleading representation
• JFTC

JEL Classification:

• K21
• L15
• L59

Acknowledgements

The author thanks Yosuke Okada and Mitsuru Sunada for their helpful comments and participants of the seminar at the CPRC for useful comments and discussion.

Notes

The views in this article are my own, not those of my organization.