Say someone markets a product, for example a book, on the Internet, with
the usual 'allow six to eight weeks for delivery' notice. Their idea is
manufacturing the product - i.e. print the book - with revenues from these
'pre-production-sales'. The ad does not clearly state that the book or
product does not exist and that production is incumbent on revenues from
pre-payment. But it does not say otherwise either.
1. Is that company in breach of existing advertising laws - in the U.S.?
2. If for some reason - say insolvency - that book or product is not
produced, and the buyers receive neither a refund nor the goods they ordered
and paid for, are we talking fraud or just another unfortunate business
collapse?
The issue has been raised here in B.C., Canada because of an incident
related to web advertising, like the one above. Here, there are no consumer
protection or advertising laws that apply to this case, and the police
refused to contemplate fraud charges because they would have to prove that
the advertiser 'never had any real intent to manufacture the product'.
("Greez, I was going to write that book but then I got the flu and my rent
kicked in and I wasn't able to do it" - "Well sorry for bothering you sir.")
Tor Rognmo
Netquest Communications
<a href="<a href="http://www.nq.com/netquest/">http://www.nq.com/netquest/</a>">http://www.nq.com/netquest/</a>
323-1873 Spyglass Place, Vancouver, B.C. V5Z 4G6 CANADA
Fax: (604) 873-9397 E-mail: netquest@unix.infoserve.net
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