Businesses often compete on the basis of the lowest price, and the level of quality of merchandise. However, there are Federal Trade Commission regulations regarding "truth in advertising" and truth of price reductions. Consumer goods can be fraudulent and sold at "authentic" prices. Elective surgery and weight loss programs can be deceptive.
For example, if a business does Lasik surgery, which has been increasingly popular since the late 1990s, they have to make reasonable claims as to the results. If they say, "You get this procedure done, and then you will throw away your glasses", this could be considered deceptive advertising, because lasik surgery, even with the new wavefront guide technology, and "bladeless" lasik, is only designed to correct moderate near-sightedness. Even with the best results, Lasik often leaves patients with problems with night vision. So, many patients will still need to wear glasses at night. Deceptive advertising is not merely exploitive, if is illegal.
Likewise, another boom industry among consumers is weight loss programs and diet supplements. If a program advertises that it makes you lose weight magically, or while you sleep, it is deceptive. If people, through starvation diets lose 10 pounds a week, they are likely to gain it back rapidly at the conclusion of the program. They did not learn any new eating habits. These weight loss programs are deceptive and can be reported to local and federal law authorities. For more information, see ftc.gov., and also http://www.legalformsguide.com legal information for small businesses.
Bargain pricing can be deceptive as well. The retailer or advertiser will offer a reduction in price from his former price, but the former price has to be a legitimate price at which goods were actually sold. If the competitors of the retailer in the same geographical area offered lasik treatments for $799 an eye, and the lasik clinic offers these treatments at $499 an eye, does this price include similar services, eye examinations, surgery and other pre or post-operative treatment?
Other claims are involved with medical treatments. If it is claimed that the treatment is totally safe, does the advertisement also mentioned various dangers and possibilities of harm, or less than optimal results? This also, if totally ignored, is considered a deceptive practice by the FTC. Lasik is an advanced laser technology for the correction of nearsightedness, farsightedness and astigmatism. The technology continues to advance. These procedures sculpt the cornea. Every year more than one million LASIK procedures are performed in the U.S. For many patients, LASIK provides almost miraculous freedom from glasses or contact lens. The downside is that Lasik can be done in an assembly line fashion without adequate attention to each individual case.
Other types of consumer fraud involve the substitute of look-alike goods for inferior goods. This is often bought by consumers who know they are buying a look-alike product, as in the case of people buying Louis XIV handbags on street corners in major cities. Other types of goods may look the same, but be functionally inferior, and sold as genuine items. Merchants in some cases may need to protect themselves from being sold goods they later discover are fraudulent.
