Preview

Corrillard V. Federal Trade Commission Case Study

Good Essays
Open Document
Open Document
602 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Corrillard V. Federal Trade Commission Case Study
In the 1950 case of P. Lorillard Co. v. Federal Trade Commission, P. Lorillard Co., the makers of Old Gold cigarettes, were ordered to “cease and desist from making certain representations found to be false in the advertising of its tobacco products (Warner, et al., 2012, p. 950) From a practical perspective in the 1950’s caveat emptor, or “let the buyer beware” is not a fair or reasonable expectation. While the careful consumer could have looked at the article, the culture of the time was not anti-smoking as it is today. The careful consumer at the time was not savvy to the wealth of scientific data regarding smoking and health. The actual ad, see Figure 1: 1942 WW2 Era Old Gold Santa Cigarette Ad, states that the impartial tests were not done to boost sales or claim superiority of brand. The ad misleads the consumer to believe that it was impartially discovered that Old Gold had the stated attributes.
The decision barred P. Lorillard Co. from ““from representing by any means directly or indirectly”: That Old Gold cigarettes or the smoke therefrom contains less nicotine, or less tars and resins, or is less irritating to the throat
…show more content…
Puffing is defined as “the practice of exaggerating the value of a product, a business, or property for promotional purposes. Sellers are not generally held liable for exaggerations that are considered puffing. But they can be liable for misrepresenting the facts of a product” (https://www.law.cornell.edu). Stating that a product has lower levels of nicotine, tar and resin based on impartial scientist as P. Lorillard Co did misrepresent the facts. “According to the uncontracted expert evidence, was so small as to be entirely insignificant and utterly without meaning so far as effect upon the smoker is concerned (Warner, et al., 2012, p 952). If they had claimed someone should smoke Old Gold cigarettes because people everywhere preferred them, this would fall into

You May Also Find These Documents Helpful

  • Satisfactory Essays

    History: Federal Trade Commission instituted a deceptive advertising proceeding against Kraft Inc. Kraft was instructed to terminate certain ads due to false advertising.…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Background: Decided in 1895 with a 8-1 vote. Six companies dominated the North American sugar refining industry: American Sugar Refining Co. and four Pennsylvania refineries who together, made up 98% of the refined sugar manufactured. A lone Boston company held the remaining 2%. The United States sued using its newly passed Sherman Anti-Trust Act (passed in 1890) declaring any attempt to monopolize trade or commerce to be illegal. This case marks the Sherman Anti-Trust Act’s first test of Constitutionality against E.C. Knight Co., who, in control of over 98% of sugar refining in the United States has a monopoly on the manufacturing aspect, but does the Sherman Anti-Trust act include manufacturers?…

    • 478 Words
    • 2 Pages
    Good Essays
  • Good Essays

    A California Supreme Court ruling on Monday states that in the instance of one brokerage firm handling a single transaction, the real estate agent is duty bound to act in the interest of both sellers and buyers.…

    • 849 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    DiLorenzo believed the Sherman Antitrust act was “ Protectionist at its roots” (pg141). The government was using this so that incompetent businesses would be protected. According to Dilorenzo there was no proof that monopolies were hurting the country. In fact , there was a deflation during the late 19th century , prices were decreasing which would benefit consumers . The Sherman Act support came from less competitive firms that wanted to break up their more successful rivals. An example Dilorenzo gave was cotton farms. They were upset that jute was being used to cover cotton bales instead of cotton. They petition government to restrain jute farmers. Small firms had more power than the big ones, because if big firms had as much power as Yellow…

    • 141 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    However, they are very misinformed, because e-cigarettes are actually very dangerous, the author provided evidence and informs that e-cigarettes "deliver nicotine to the lungs through a battery-generated vapor" (Fehling). This product is advertised widely throughout the United States, and thousand of people purchase these e-cigarettes without knowing they are terrible for their health. The author of this article, April Fehling, further supports her argument that e-cigarette advertising should be banned by providing evidence that traditional cigarette commercials and advertising have not been allowed on T.V. since 1971, and neither should e-cigarette advertising. Although e-cigarettes are not traditional cigarettes, they should'nt be allowed on television since traditional cigarettes haven't been allowed to be on T.V. for years, neither should electronic…

    • 703 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The New England and Chesapeake colonies were both settled by English colonists. Most colonists moving from Great Britain to New England were families searching for religious salvation, rather than mostly the single men that traveled to the Chesapeake area in search of wealth. The immigrants of the Chesapeake area were greeted with a climate and soil that were perfect for cultivating tobacco, cotton, indigo, and rice. Those settling in New England could not rely on farming to support themselves because of the rocky soil in the north. While the majority of the Chesapeake colonists were not as cohesive due to the great distance from farms to these towns, New England had close-knit church events, meetings, and schools. Although, the New England and Chesapeake colonies were both settled by people at English origin, by 1700 the regions had evolved into two distinct societies because of motives, environment, and towns/communities.…

    • 1064 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Electronic cigarettes are modern devices that are beginning to make smoking look fashionable again. Companies of the products trick consumers by claiming the products are safe, and offer lower prices as a way to reel in their customers. The consumers do not know that they are falling into a marketing trap. As electronic cigarettes are becoming increasingly popular and acceptable, more individuals are using the devices as a substitute to traditional cigarettes. The devices are used to inhale nicotine, without the smoke byproduct that cigarettes create. Others feel that the dangerous chemicals found inside could be creating serious complications. Additional legislation should be put in place, to decrease the use and availability of electronic cigarettes.…

    • 1890 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Appealing to someone’s emotions is how the tobacco companies get the big bucks. Lucky Strike Cigarettes first came about around the 1920s. Its motto was “Reach for a LUCKY instead of a sweet”. Which went on to say in the ad, “To keep a slender figure, No one can deny Lucky Strike. They are toasted so there is no throat irritation and no cough”. This ad was made to appeal to the average American woman in that era. Why were the average American women so fascinated with smoking? Did they not know that it caused cancer? Or was smoking back then more of an accessory rather than a need to be happy and healthy?…

    • 539 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Speech

    • 983 Words
    • 4 Pages

    A. Narration: In the world today consumers are persuaded by various marketing methods, the most common method being advertisements. However many companies behind these ads choose not to disclose certain important facts about their product. On a box of Newport cigarettes the warning label reads as; Surgeon General’s Warning: Cigarette smoke contains carbon monoxide, although this is a true fact about cigarette smoke the supplier failed to include the product can also cause lung cancer (popline.org), along with many other side effects. It is only right that consumers are fully aware of the product they choose to purchase.…

    • 983 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Eater Reader

    • 729 Words
    • 3 Pages

    Today Manufactures do whatever they have to do to get their products sold, even if it involves lying and spending billions of dollars in marketing said product. Spurlock discusses in her article how companies market these products and how we as consumers fall for every trick and buy what is being sold. Spurlock explains, “They threw billions and billions of more dollars into making smoking look cool, hip, sexy and safe” (Spurlock 38). Though many of these things being advertised, many of them we actually may need. But how much of them do we need? It makes one think if that feeling of “need” is actual or is it just the idea of having it that gets people’s attention. Spurlock states “In 2003, the auto industry spent $18.2 billion telling us we need a new car, more cars, bigger cars.… The rate of increase in the number of cars, vans and SUVs for personal travel has been six times the rate of population increase”(Spurlock 40). They are basically just trying to tell consumers what they think they need in order to live a happy life. But we as consumers must also take some sort of responsibility in these actions. Spurock writes “And the line between personal responsibility and corporate responsibility gets finer and blurred. Yes, you’re still…

    • 729 Words
    • 3 Pages
    Good Essays
  • Good Essays

    joe chemo

    • 964 Words
    • 4 Pages

    as a “cool” and “masculine” camel that always has a Camel cigarette in his mouth.…

    • 964 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Product Liability

    • 1989 Words
    • 8 Pages

    In this age of endless lawsuits and litigation from everyone suing everyone else, one must ask the question "where does product liability end and consumer responsibility begin?" This question has been further complicated by occurrences that stretch to the most far-reaching ends of this spectrum, the spectrum ranging from strict product liability of the company to complete consumer responsibility. On the strict product liability of the company side, we have the cigarette industry where the CEOs of the largest cigarette companies denied that their product was liable for the cause of addiction. Almost all consumers know that the ingredient nicotine in cigarettes is addictive, due to extensive scientific testing and reports on this fact. What these CEO 's should have done was admit that they knew nicotine was addictive, and therefore made their product liable so as to give a fair warning to unknowing consumers. On the complete consumer responsibility side, we can examine the lawsuit where a man sued McDonald 's for over a million dollars because he spilled a cup of their coffee on his self and suffered burns. He claimed that McDonald 's was liable because there was not a warning on the lid that stated that the coffee was hot. In my opinion, this lawsuit should have never happened. The consumer is attempting to alleviate all of the responsibility from himself for spilling his coffee and pass it on to the producer of the product. Frivolous lawsuits such as this, as well as companies failing to consider the importance of product liability, have resulted in an increasing annual product liability bill. Last year alone $4 billion was spent on product liability lawsuits and settlements (McAdams, p.636). This staggering number suggests that maybe we need to reform our liability system. Ideally, we as a society would like to reach a happy medium between strict product liability of the company and complete consumer responsibility. If this occurred, lawsuits such as…

    • 1989 Words
    • 8 Pages
    Better Essays
  • Good Essays

    The CDC is one of the largest most creditable anti-smoking campaigns although; there are many smoking awareness campaigns out there today. They are all working at the common goal with is informing people not to smoke. By giving very critical reasons against smoking hoping to reach people before it’s too late. Smoking awareness campaigns using these strong visual ads are appealing to all groups that are thinking of starting to smoke. Giving people all the facts about smoking and making them aware of what it could cause and do to you and…

    • 523 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Secondly, by attempt to regulate the advertisements of the tobacco industry in strict manners, the FDA's regulations was argued by the tobacco industry to violate the first amendment's guarantee for the Constitutional rights to free commercial…

    • 467 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    These types of law suits beg the question of “Who’s responsibility is it” when it comes to what you put in your body. Because the food or tobacco is available for sale, does that mean that you as a consumer must voice, or say as to whether you purchase the product and eat or smoke it. Does the consumer share in some social responsibility to say “no” I will not purchase a product that may harm me, or does the consumer expect that there will not be any side effects associated with his decision?…

    • 149 Words
    • 1 Page
    Satisfactory Essays