0:00:00.280,0:00:04.989 Twelve false advertising scandals that cost some brands millions of dollars. 0:00:05.480,0:00:07.429 It doesn't pay to deceive the public. 0:00:07.599,0:00:08.439 In advertising, 0:00:08.520,0:00:12.640 there's a big difference between pushing the truth and making false claims. 0:00:12.800,0:00:16.000 Many companies have been caught out for peddling mediocre products 0:00:16.000,0:00:20.639 using wild claims like scientifically proven with guaranteed results. 0:00:20.879,0:00:22.389 For companies that cross the line, 0:00:22.520,0:00:25.239 it can cost millions and lead to a damaged reputation. 0:00:25.770,0:00:30.170 Here are 12 examples of false advertising scandals that have rocked big brands. 0:00:30.209,0:00:31.129 Some are still ongoing, 0:00:31.250,0:00:33.159 and not all companies have had to pay up, 0:00:33.369,0:00:36.799 but each dealt with a fair amount of negative publicity. 0:00:37.250,0:00:38.279 Coming in at number 1, 0:00:38.450,0:00:42.680 Activia yogurt said it had special bacterial ingredients. 0:00:42.970,0:00:47.250 Ads for Dan Activia brand yogurt landed the company with a class action 0:00:47.700,0:00:51.400 settlement of $45 million in 2010, 0:00:51.599,0:00:52.990 according to ABC News. 0:00:53.319,0:00:57.840 The yogurts were marketed as being clinically and scientifically proven to 0:00:57.840,0:01:01.240 boost your immune system and able to help to regulate digestion. 0:01:01.479,0:01:02.720 The Activia ad campaign, 0:01:02.799,0:01:04.930 fronted by actress Jamie Lee Curtis, 0:01:05.000,0:01:07.760 claimed that the yogurt had special bacterial ingredients. 0:01:07.800,0:01:08.349 As a result, 0:01:08.480,0:01:09.110 the yogurt was 0:01:09.230,0:01:12.699 sold at 30% higher prices than other similar products. 0:01:12.949,0:01:13.260 However, 0:01:13.309,0:01:17.239 the Cleveland judge overseeing the case said that these claims were unproven. 0:01:17.470,0:01:19.790 The lawsuit against Dannon began in 2008 0:01:19.790,0:01:22.139 when consumer Trish Wiener lodged a complaint. 0:01:22.389,0:01:24.989 On top of the fine of $45 million, 0:01:25.150,0:01:27.059 Dannon was ordered to remove clinically 0:01:27.059,0:01:29.739 and scientifically proven from its labels, 0:01:29.750,0:01:30.959 according to ABC. 0:01:31.470,0:01:36.180 Phrases similar to clinical studies show were deemed permissible. 0:01:36.620,0:01:39.410 Dannon denied any wrongdoing and claimed it settled a 0:01:39.410,0:01:42.480 lawsuit to avoid the cost and distraction of litigation. 0:01:42.800,0:01:43.769 Coming in at 2, 0:01:43.970,0:01:47.199 Red Bull said it could give you wings. 0:01:47.370,0:01:51.599 Energy drink company Red Bull was sued in 2014 for its slogan, 0:01:51.730,0:01:53.519 "Red Bull gives you wiiings." 0:01:53.610,0:01:55.809 The company settled the class action case by 0:01:55.809,0:01:59.319 agreeing to pay out a maximum of $13 million 0:01:59.690,0:02:03.489 including $10 to every U.S. consumer who had bought the drink since 2002. 0:02:04.250,0:02:06.080 The tagline which the company has used 0:02:06.080,0:02:08.610 for nearly two decades went alongside marketing 0:02:08.610,0:02:10.729 claims that the caffeinated drink could improve 0:02:10.729,0:02:13.600 a consumer's concentration and reaction speed. 0:02:13.970,0:02:16.649 Benjamin Careathers was one of several consumers who 0:02:16.649,0:02:19.080 brought the case against the Austrian Drinks Company. 0:02:19.369,0:02:22.279 He said he was a regular consumer of Red Bull for 10 years, 0:02:22.369,0:02:24.850 but that he had not developed wings or shown 0:02:24.850,0:02:27.839 any signs of improved intellectual or physical abilities. 0:02:27.970,0:02:30.399 Red Bull released this statement following the settlement. 0:02:31.020,0:02:34.809 Red Bull settled the lawsuit to avoid the cost and distraction of litigation. 0:02:35.020,0:02:35.369 However, 0:02:35.619,0:02:39.059 Red Bull maintains that its marketing and labeling have always been 0:02:39.059,0:02:43.649 truthful and accurate and denies any and all wrongdoing or liability. 0:02:43.940,0:02:44.940 Coming in at #3, 0:02:45.139,0:02:47.740 Tesco was criticized for an ad in response to 0:02:47.740,0:02:51.130 the horse meat scandal which suggested the problem affected 0:02:51.500,0:02:53.550 the whole food industry. 0:02:54.020,0:02:55.539 In 2013, 0:02:55.820,0:02:59.529 UK supermarket chain Tesco was criticized after it ran a misleading 0:02:59.529,0:03:02.089 ad campaign in the wake of its horse meat scandal, 0:03:02.339,0:03:03.570 according to The Telegraph. 0:03:03.779,0:03:07.220 The supermarket had been caught selling beef contaminated with horse 0:03:07.220,0:03:09.720 meat in some of its burgers and ready meals. 0:03:09.820,0:03:12.259 In an attempt to recover from the PR disaster, 0:03:12.419,0:03:15.869 Tesco ran a two-page spread in national newspapers with the headline, 0:03:15.979,0:03:16.220 What 0:03:16.354,0:03:17.774 burgers have taught us? 0:03:18.065,0:03:18.544 In the ad, 0:03:18.664,0:03:21.324 Tesco was criticized for implying that the whole meat 0:03:21.324,0:03:23.774 industry was implicated in the horse meat fiasco, 0:03:23.985,0:03:25.214 which was untrue. 0:03:25.384,0:03:28.975 The UK advertising regulator ASA banned the campaign. 0:03:29.214,0:03:30.904 Nearly 300 million pounds, 0:03:31.024,0:03:33.774 that's almost $432 million 0:03:33.985,0:03:37.264 was wiped off the value of Tesco following the horse meat scandal, 0:03:37.464,0:03:38.705 according to The Guardian. 0:03:39.145,0:03:40.134 At number 4, 0:03:40.425,0:03:43.904 Kellogg's said Rice Krispies could boost your immune system. 0:03:44.550,0:03:48.369 Kellogg's Popular Rice Krispies cereal had a crisis in 2010 when the 0:03:48.369,0:03:50.630 brand was accused of misleading consumers 0:03:50.630,0:03:52.940 about the product's immunity boosting properties, 0:03:53.119,0:03:54.410 according to CNN. 0:03:54.550,0:03:56.679 The Federal Trade Commission ordered Kellogg to 0:03:56.679,0:03:58.710 halt all advertising that claimed that the 0:03:58.710,0:04:02.669 cereal improved the child's immunity with 25% 0:04:02.669,0:04:05.399 daily value of antioxidants and nutrients, 0:04:05.419,0:04:06.149 vitamins A, 0:04:06.270,0:04:06.539 B, 0:04:06.669,0:04:06.979 C, 0:04:06.990,0:04:07.759 and E, 0:04:08.029,0:04:10.179 stating the claims were dubious. 0:04:10.770,0:04:13.509 The case was settled in 2011. 0:04:13.619,0:04:17.850 Kellogg agreed to pay $2.5 million to affected consumers, 0:04:17.980,0:04:22.970 as well as donating $2.5 million worth of Kellogg products to charity, 0:04:23.260,0:04:25.299 according to Law360. 0:04:25.700,0:04:27.179 And straight in at number 5, 0:04:27.380,0:04:28.369 Kellogg again. 0:04:28.660,0:04:28.980 Later, 0:04:29.100,0:04:31.660 Kellogg said Mini Wheats could make you smarter. 0:04:32.380,0:04:33.959 In 2013, 0:04:34.170,0:04:36.119 Kellogg was in even more trouble. 0:04:36.260,0:04:39.049 The company agreed to pay $4 million for false 0:04:39.049,0:04:42.290 advertising claims it made about frosted Mini Wheats. 0:04:42.410,0:04:44.649 The cereal company had falsely claimed that 0:04:44.649,0:04:47.679 the Mini Wheats improved children's attentiveness, 0:04:47.970,0:04:48.359 memory, 0:04:48.450,0:04:50.670 and other cognitive functions. 0:04:50.809,0:04:52.619 According to Associated Press, 0:04:52.640,0:04:55.250 the ad campaign claimed that the breakfast cereal 0:04:55.250,0:04:58.339 could improve a child's focus by nearly 20%. 0:04:58.410,0:04:59.040 In its defense, Kellogg 0:04:59.622,0:05:02.502 said that the ad campaign ran for 4 years previously and 0:05:02.502,0:05:05.171 that it had since adjusted its claims about the cereal. 0:05:05.532,0:05:09.342 Kellogg also noted that it has a long history of responsible advertising. 0:05:09.502,0:05:12.252 People who consumed the cereal during the time the ad ran, 0:05:12.342,0:05:14.221 which was during January 28, 0:05:14.451,0:05:16.302 2009 to October 1, 0:05:16.381,0:05:17.611 2009, 0:05:17.821,0:05:23.932 were allowed to claim back $5 per box with a maximum of $15 per customer, 0:05:24.302,0:05:26.242 according to Associated Press. 0:05:26.484,0:05:27.493 Coming in at number 6, 0:05:27.634,0:05:31.223 New Balance said its shoe could help wearers burn calories. 0:05:31.523,0:05:35.544 New Balance was accused of false advertising in 2011 over a 0:05:35.544,0:05:38.704 sneaker range that it claimed could help wearers burn calories, 0:05:38.873,0:05:40.104 according to Reuters. 0:05:40.473,0:05:43.704 Studies found that there were no health benefits from wearing the shoe. 0:05:43.834,0:05:47.553 The toning sneaker claimed to use hidden brand technology and 0:05:47.553,0:05:50.954 was advertised as calorie burners that activated the glutes, 0:05:51.033,0:05:51.514 quads, 0:05:51.614,0:05:52.273 hamstrings, 0:05:52.354,0:05:53.394 and calves. 0:05:53.536,0:05:55.835 Plaintiffs in the lawsuit claimed to have been 0:05:55.835,0:05:58.175 harmed and misled by the sneaker company. 0:05:58.406,0:05:59.085 On August 20, 0:05:59.246,0:06:00.316 2012, 0:06:00.526,0:06:04.476 New Balance agreed to pay a settlement of $2.3 million 0:06:04.686,0:06:06.235 according to the Huffington Post. 0:06:06.645,0:06:07.955 Coming in at number 7, 0:06:08.205,0:06:11.675 Walmart falsely advertised the price of coke in New York. 0:06:12.006,0:06:16.006 Walmart agreed to pay more than $66,000 in fines after 0:06:16.006,0:06:20.406 overcharging customers from 117 stores in New York for Coca-Cola. 0:06:20.839,0:06:25.839 The supermarket chain had advertised a nationwide sale on the soft drink of 2014, 0:06:25.910,0:06:28.260 where 12 packs would cost just $3. 0:06:28.510,0:06:28.970 However, 0:06:29.190,0:06:32.089 customers in New York State were charged $3.50. 0:06:32.350,0:06:35.790 Walmart staff allegedly lied about the reason for the price hike, 0:06:35.950,0:06:38.519 telling customers that New York has a sugar tax, 0:06:38.670,0:06:40.559 according to corporate crime reporter. 0:06:40.809,0:06:42.929 New York Attorney General Eric Schneiderman, 0:06:43.109,0:06:44.739 who conducted the investigation, 0:06:44.869,0:06:45.750 concluded the price 0:06:45.993,0:06:48.162 violated New York State's general business law 0:06:48.173,0:06:50.042 349 and 350. 0:06:50.523,0:06:51.782 Coming in at number 8, 0:06:52.013,0:06:56.703 Definity Eye Cream retouched the model in an anti-aging ad. 0:06:57.053,0:06:58.132 In 2009, 0:06:58.173,0:07:01.453 an Olay ad for its Difinity Eye cream showed former model Twiggy 0:07:01.453,0:07:05.322 looking wrinkle-free and a whole lot younger than her then 60 years. 0:07:05.532,0:07:08.483 It turned out that the ads were retouched according to the Guardian. 0:07:08.653,0:07:10.822 The British advertising regulator ASA 0:07:10.885,0:07:13.395 banned the ad after Liberal Democrat lawmaker Jo 0:07:13.395,0:07:16.425 Swinson gathered more than 700 complaints against it. 0:07:16.675,0:07:19.355 The digitally altered spots were deemed to give a 0:07:19.355,0:07:22.346 misleading impression of the effect the product could achieve. 0:07:22.635,0:07:23.985 Ola's parent company, 0:07:23.996,0:07:24.966 Procter and Gamble, 0:07:25.156,0:07:27.115 responded that it was routine practice to 0:07:27.115,0:07:30.036 use post-production techniques to correct poor lighting and 0:07:30.036,0:07:33.436 other minor photographic deficiencies before publishing the final 0:07:33.436,0:07:35.906 shots as part of an advertising campaign. 0:07:36.436,0:07:37.876 Coming in at number 9, 0:07:38.075,0:07:40.665 Splenda said it was made from sugar. 0:07:41.049,0:07:44.269 The Sugar Association asked for an investigation into 0:07:44.269,0:07:48.179 alternative sweetness blenders made from sugar slogan. 0:07:48.350,0:07:51.670 It complained that the tagline was misleading and that the sweetener is 0:07:51.670,0:07:55.940 nothing more than highly processed chemical compound made in a factory, 0:07:56.070,0:07:57.220 CBS reported. 0:07:57.510,0:07:58.779 In 2007, 0:07:58.790,0:08:00.630 a resulting lawsuit led by the makers 0:08:00.630,0:08:03.850 of rival sweetener Equal settled against Splenda. 0:08:04.190,0:08:05.029 Equal was looking for 0:08:05.179,0:08:09.519 $200 million from Splenda in the settlement for unfair profits. 0:08:09.600,0:08:10.119 However, 0:08:10.399,0:08:14.519 the exact amount of the settlement remains confidential according to NBC. 0:08:14.760,0:08:16.070 Coming in at number 10, 0:08:16.239,0:08:21.839 L'Oreal claimed its skincare products were clinically proven to boost genes. 0:08:22.160,0:08:23.399 In 2014, 0:08:23.559,0:08:25.970 cosmetics company L'Oreal was forced to admit 0:08:25.970,0:08:29.040 that it's Lancôme Génifique and L'Oreal Paris 0:08:29.489,0:08:34.169 Youth Code skin care products were not clinically proven to boost genes and 0:08:34.169,0:08:38.808 give visibly younger skin in just 7 days as stated in its advertising. 0:08:39.010,0:08:40.400 According to the FTC, 0:08:40.409,0:08:43.119 the claims were false and unsubstantiated. 0:08:43.369,0:08:44.090 In the settlement, 0:08:44.250,0:08:47.890 L'Oreal USA was banned from making claims about anti-aging 0:08:47.890,0:08:52.429 without competent and reliable scientific evidence substantiating such claims, 0:08:52.489,0:08:53.169 the FTC said. 0:08:53.700,0:08:55.739 "Though L'Oreal escaped the fine at the time, 0:08:55.900,0:09:01.119 each future violation of this agreement will cost the company up to $16,000. 0:09:01.669,0:09:03.419 Coming in at number 11. 0:09:03.460,0:09:06.099 Eclipse said its gum could kill germs. 0:09:06.260,0:09:09.210 Eclipse gum claimed in its ads that its new ingredient, 0:09:09.419,0:09:11.169 magnolia bark extract, 0:09:11.219,0:09:12.770 had germ killing properties. 0:09:12.940,0:09:15.849 A lawsuit brought by consumers alleged that the ads were misleading, 0:09:16.099,0:09:17.179 according to Businessweek. 0:09:17.789,0:09:22.270 Wrigley denied wrongdoing, but was ordered to pay more than $6 million to a fund 0:09:22.270,0:09:27.260 that would reimburse consumers up to $10 each for the misleading products in 2010. 0:09:27.630,0:09:29.059 Coming in at number 12, 0:09:29.250,0:09:33.539 a lawsuit alleged that Taco Bell was falsely advertising its beef. 0:09:33.830,0:09:35.270 In 2011, 0:09:35.309,0:09:39.789 consumers raised questions about what constituted Taco Bell's seasoned beef. 0:09:40.119,0:09:42.390 According to the lawsuit reported in adage, 0:09:42.429,0:09:44.539 the seasoning used was oat filler, 0:09:44.710,0:09:47.419 which means the meat isn't seasoned beef at all, 0:09:47.630,0:09:49.299 according to USDA standards. 0:09:49.429,0:09:52.789 The suit alleged that the franchise had been tricking its consumers into 0:09:52.789,0:09:55.940 thinking its products were of higher grade than they actually were. 0:09:56.140,0:09:58.820 Taco Bell took the opportunity to poke fun at itself, 0:09:58.849,0:10:01.099 hoping to mitigate the PR disaster. 0:10:01.270,0:10:03.539 The company even took a four-page newspaper 0:10:03.539,0:10:06.140 ad out thanking complainants for suing. 0:10:06.380,0:10:11.099 Taco Bell was vindicated and the lawsuit was withdrawn in April 2011, 0:10:11.380,0:10:13.369 according to Associated Press. 0:10:13.460,0:10:14.599 And finally, 0:10:14.619,0:10:16.219 it isn't a piece of advertising, 0:10:16.299,0:10:18.830 it's actually two books that I highly recommend. 0:10:19.059,0:10:21.500 Now Salt Sugar Fat and Fast Food Nations are 0:10:21.500,0:10:24.770 two pieces of investigative reporting on the food industry, 0:10:25.020,0:10:29.250 and it covers everything from how they make their food to how they advertise to us, 0:10:29.619,0:10:31.570 to how they try and cover up 0:10:32.000,0:10:34.710 the downside of their foods such as obesity, 0:10:34.760,0:10:35.799 diabetes, 0:10:36.159,0:10:36.809 their PR, 0:10:37.080,0:10:38.440 the way they try and 0:10:38.840,0:10:40.450 manipulate and lobby. 0:10:41.340,0:10:42.330 All of that is just 0:10:42.500,0:10:44.020 covered in these books and it's quite shocking, 0:10:44.140,0:10:45.010 it's quite sad, 0:10:45.299,0:10:48.570 but it's a reality that we need to face. And once we know about it, 0:10:48.640,0:10:50.340 then we're less likely to wanna 0:10:50.909,0:10:52.859 give our money away to these companies, 0:10:52.979,0:10:55.849 because at the end of the day it's a return on investment that's negative. 0:10:55.940,0:10:56.489 So, for example, 0:10:56.539,0:10:57.369 if I buy, 0:10:57.630,0:10:58.739 let's say a Big Mac. 0:10:59.239,0:11:00.619 It might taste good on the spot, 0:11:00.690,0:11:03.320 but then half an hour later I'm not gonna feel too good. 0:11:03.690,0:11:05.489 It's gonna be high in saturated fats, 0:11:05.609,0:11:06.210 high in sugar, 0:11:06.330,0:11:07.159 high in salt, 0:11:07.239,0:11:08.409 it's gonna mess my body up, 0:11:08.570,0:11:10.039 and then I'm gonna feel bloated, 0:11:10.130,0:11:11.080 lethargic. 0:11:11.510,0:11:11.989 Sometimes 0:11:12.450,0:11:14.960 you can actually have a headache after eating these foods, 0:11:15.289,0:11:17.359 and so the return on investment is negative. 0:11:18.010,0:11:21.169 And also the fact that they hire 0:11:21.539,0:11:22.809 scientists 0:11:23.049,0:11:24.840 and food engineers 0:11:25.210,0:11:28.080 to make these products extra palatable 0:11:28.289,0:11:28.960 is 0:11:29.609,0:11:30.479 quite bizarre. 0:11:30.650,0:11:33.000 So, if you think about Pringles, 0:11:33.289,0:11:33.479 you know, 0:11:33.489,0:11:34.250 the crunch, 0:11:34.570,0:11:35.530 the flavor, 0:11:35.770,0:11:36.669 the smell, 0:11:37.289,0:11:38.919 everything about the product 0:11:38.929,0:11:39.849 has been designed. 0:11:40.619,0:11:42.739 And it's designed to make us 0:11:43.419,0:11:45.059 extremely addicted to these products. 0:11:45.219,0:11:47.700 And also they covered the marketing in these books. 0:11:47.820,0:11:50.169 Now the marketing that these food companies use, 0:11:50.299,0:11:50.500 I mean, 0:11:50.539,0:11:53.369 you've seen in the examples that I showed you before, 0:11:53.789,0:11:56.539 the marketing is just frightening because they 0:11:56.539,0:11:59.109 know exactly at what hours to market, 0:11:59.380,0:12:01.010 they know exactly how to market, 0:12:01.020,0:12:05.140 and they know exactly what to show us to make us motivated to go out and buy them. 0:12:05.429,0:12:07.330 And if we haven't got money to buy them, 0:12:07.369,0:12:07.799 for example, 0:12:08.049,0:12:09.239 let's say I'm a child, 0:12:09.440,0:12:10.479 I'm a 7-year-old, 0:12:10.690,0:12:13.729 they know exactly how to make that 7-year-old nag 0:12:13.729,0:12:16.950 his parents until they give in and buy him the product 0:12:17.179,0:12:17.760 or her. 0:12:17.929,0:12:21.320 And then what happens to that child is that as the child grows up, 0:12:21.690,0:12:25.200 that brand gets imprinted and embedded in the child's brain, 0:12:25.450,0:12:28.000 so when the child becomes a teenager and then an adult, 0:12:28.330,0:12:29.919 he's a buyer for life 0:12:30.510,0:12:34.280 because that brand is the number one brand that's embedded in the child's brain. 0:12:34.690,0:12:36.309 And then that child becomes an adult, 0:12:36.320,0:12:37.010 and then 0:12:37.260,0:12:38.979 he will always seek out that product. 0:12:39.059,0:12:40.049 Just think about it. 0:12:40.659,0:12:42.690 Maybe you've been to the store and you wanted 0:12:42.820,0:12:44.020 a specific product, 0:12:44.140,0:12:45.130 a specific brand, 0:12:45.219,0:12:46.250 that's what you had in mind, 0:12:46.260,0:12:48.489 and the store didn't have that specific brand. 0:12:48.859,0:12:51.479 And then you were kind of hesitant to maybe buy something else, 0:12:51.539,0:12:53.010 even though it was the same 0:12:53.500,0:12:53.950 product. 0:12:54.140,0:12:56.669 It was just the branding that was more powerful. 0:12:57.140,0:12:58.289 Now why is that? 0:12:58.739,0:13:01.539 And the reason is because they got us when we were young. 0:13:02.130,0:13:03.059 So, these two books, 0:13:03.070,0:13:03.929 incredible, 0:13:04.299,0:13:05.549 really insightful, 0:13:06.099,0:13:06.729 quite 0:13:06.979,0:13:07.820 alarming, 0:13:08.020,0:13:08.780 but it's 0:13:08.820,0:13:13.049 good to have this source of knowledge because then we can make wiser decisions. 0:13:13.419,0:13:15.700 And just like the previous examples, 0:13:15.780,0:13:17.049 the 11 that I showed you, 0:13:18.250,0:13:19.419 they're really insightful. 0:13:19.890,0:13:20.989 And so, 0:13:21.270,0:13:22.750 hopefully this kind of, 0:13:23.869,0:13:25.140 it's a game changer for you. 0:13:25.179,0:13:26.650 It was a game changer for me. 0:13:26.940,0:13:29.500 It has made my decisions a little bit 0:13:29.820,0:13:31.450 more wise, 0:13:31.859,0:13:33.950 and it's really important because 0:13:34.140,0:13:35.169 at the end of the day, 0:13:35.539,0:13:38.900 we don't have infinite sources of money and when we spend it we 0:13:38.900,0:13:40.989 want to spend it right and we want to invest it right. 0:13:41.559,0:13:42.669 And preferably 0:13:42.820,0:13:43.590 what we invest 0:13:43.900,0:13:45.330 the money in will be 0:13:45.619,0:13:47.250 good for us and for our health. 0:13:47.380,0:13:49.090 So, hopefully this video was helpful, 0:13:49.340,0:13:50.250 insightful. 0:13:50.299,0:13:50.900 And if it was, 0:13:51.020,0:13:51.900 don't forget to like, 0:13:52.020,0:13:54.739 comment, and subscribe and I'll see you in the next video. 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