In order to maximize the profit, Premier Fitness employed the mis trioing/false advertising to influence customers to enter contracts with the fitness club that resulted in materially higher(prenominal) undisclosed costs. Information was not adequately disclosed to show the true costs associated with gym membership and cancellation of membership was bring to be excessively difficult. Premier Fitness also was found to be withdrawing money from cancelled customer accounts which is also ravish behavior. Its profit oriented objectives resulted wrong activities and $200,000 penalty.
Consumers are making decisions base on the advertisements. The misleading/false advertising will lead the consumers to make wrong decisions. This action is also monopolistic behavior, which is unethical and limited by the competition act.
The monopolistic behavior could hit the competition negatively and damage the smaller competitors. The customers made the wrong decisions based on Premier Fitness misleading advertising and resulted the customers suffered financial losses.
Premier Fitness has violated many of the res publica and Donts in its advertising. For example, excessive small print disclaimer was used in its advertisement. The fine print failed to change the public impression conveyed by an advertisement. The material information was not amply disclosed in the advertisements, as some information was strategically left out. Premier Fitness used regular price in its advertisement but the company...If you want to get a full essay, order it on our website: Ordercustompaper.com
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