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Story August 21, 1917

The Daily Missourian

Columbia, Boone County, Missouri

What is this article about?

In Minneapolis, the Imperial Automobile Supply Company was fined for misleading advertising by claiming a $5 regular price for a horn that actually sold for $3.50, with sale at $2.95. The judge ruled such claims as factual statements due to the seller's expertise.

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Full Text

FINED FOR MISLEADING AD

Automobile Supply Company Misrepresented Value of Horn.

A decision in favor of honest advertising was recently made in Minneapolis against the Imperial Automobile Supply Company, which was fined for the misuse of a claim of "value" or "regular price."

The firm had been displaying an automobile signal horn under the placard, "Regular Price $5; Sale Price $2.95." Evidence was obtained by the Associated Advertising Clubs of the World which showed that the horn regularly sold for $3.50.

The opinion of the judge was to the effect that exaggerated value claims are more than expressions of honest opinion of the value of the goods being advertised; that because of the advertiser's technical knowledge of the goods, and because the purchaser has no such technical knowledge, such statements are indeed statements of fact, and if untrue, the advertiser may be held liable.

What sub-type of article is it?

Deception Fraud Crime Story

What themes does it cover?

Deception Justice Crime Punishment

What keywords are associated?

Misleading Advertising Fined Company Automobile Horn False Value Claim Honest Advertising

What entities or persons were involved?

Imperial Automobile Supply Company Associated Advertising Clubs Of The World

Where did it happen?

Minneapolis

Story Details

Key Persons

Imperial Automobile Supply Company Associated Advertising Clubs Of The World

Location

Minneapolis

Event Date

Recently

Story Details

The Imperial Automobile Supply Company was fined in Minneapolis for advertising an automobile horn with a false regular price of $5 (actual $3.50) to sell at $2.95. The judge held that such value claims are factual due to the seller's expertise and buyer ignorance, making untrue statements liable.

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