Which of the following is a potential consequence of false advertising?

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The potential consequence of false advertising that is most significant is the legal action taken against the offending company. When a company engages in advertising that contains misleading or false information, it can violate various laws and regulations regarding advertising practices, such as the Federal Trade Commission (FTC) Act in the United States. This can lead to lawsuits, fines, and other penalties imposed by regulatory agencies or private parties. The legal repercussions serve to protect consumers from deception and may also serve to deter other businesses from engaging in similar practices.

The other options do not accurately reflect the outcomes of false advertising. For instance, while accurate information can certainly drive sales, false advertising is inherently misleading and cannot result in increased sales from reliable information. Enhanced brand reputation is unlikely to stem from misleading information; rather, it tends to damage the trust consumers place in a brand. Finally, false advertising is likely to have negative effects on consumer trust rather than neutral effects, as consumers are often wary of companies that misrepresent their products or services.

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