Porter &Dietsch, Inc., marketed a weight-loss pill. The advertisements stated th
ID: 428674 • Letter: P
Question
Porter &Dietsch, Inc., marketed a weight-loss pill. The advertisements stated that users could eat whatever they wanted and still slim down, no starvation dieting was necessary and weight loss could be accomplished without suffering through boring diets. In fact, use of the tablet had very little effect without also following a severely restricted calorie diet. Which of the following are possible consequences?
The Federal Trade Commission could seek a voluntary agreement with Porter &Dietsch or issue a “cease and desist” order.
So long as at least one person lost weight using the pills on a reasonable diet, Porter &Dietsch will not be held liable.
The rule of caveat emptor applies since the buyer has full opportunity to make an examination of the pills before beginning any diet.
Any person who took the pills and did not lose weight could sue Porter &Dietsch under the usury laws.
Explanation / Answer
Porter & Dietsch is marketing a weight loss pill with the claims in advertisement as reads.
The information transmitted by the company is in fact in contradiction to that the tablet had very little effect without also following a severly restricted calorie diet.
The Rule of Caveat Emptor simply says let the customer/buyer beaware! Although the company is making false claims in advertisement, the onus is on the buyer to understand the effectiveness, real testimonials if any etc. The company is no where mentioning it is guaranteed or it'll refund the money. So consumer has to understand the product well before she takes a decision whether to buy the tablet or not.