Most consumer protection laws in the United States aim at cushioning consumers against harmful and deceptive advertisements. For example, advertisers could be held liable for providing wrong information about the products that are on offer. Secondly, advertisers risk being prosecuted for displaying content, which is considered inappropriate for children, especially sexual or violent content (Kurnit, & Taylor, 2018). However, there seemingly are no laws that protect consumers from exaggerated advertisements, which may be wrongly interpreted as legally binding by some consumers.
In the PepsiCo advert, the courts’ decision that Leonard could not be compensated is justifiable. Firstly, from the appearance of the advert, the Harrier Jet was only shown at the end from which a teenager emerges before the words “HARRIER FIGHTER 7,000,000 PEPSI POINTS” are displayed on the screen (Cohen, 2000). The advert could mean that the teenager had been rewarded with the Harrier Jet, and therefore, other people could likely win other prizes if they accumulated enough Pepsi points. Secondly, the Harrier jet was not listed on the Order Form, meaning it was not part of the prizes to be won. Therefore, the advert was only a creative way of attracting many people to buy PepsiCo products and accumulate many points for a chance to win prizes.
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According to Feinman & Brill, (2006), an advertisement is not an offer, and therefore, cannot form a contract that is mutually binding. Such a position implies that people should not take the information contained in adverts as true; rather, the information represents invitations for offers. Evidently, there is a loophole in the existing laws, and companies may take advantage of these gaps to exploit or dupe consumers. Seemingly, it is up to the consumers to realize that advertisements are not legally binding. However, it is now an ethical issue for advertisers to ensure that the information they incorporate in adverts is as accurately as possible.
References
Cohen, L. E. (2000). The Choice of a New Generation: Can an Advertisement Create a Binding Contract. Mo. L. Rev. , 65 , 553.
Feinman, J. M., & Brill, S. R. (2006). Is an Advertisement an Offer-Why It Is, and Why It Matters. Hastings LJ , 58 , 61.
Kurnit, R., & Taylor, H. (2018). Advertising & Marketing. https://gettingthedealthrough.com/area/64/jurisdiction/23/advertising-marketing-united-states/
