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If a company makes unverified health claims in an advertisement, what problem can arise?

Answer and explanation

Correct answer: Legal risk of misleading advertisement

The governing concept is legal compliance in advertising and consumer protection. An advertiser should present claims that are truthful, clear and supported by reliable evidence, especially when the claims concern health, safety or treatment. An unverified health statement may cause consumers to form a false impression and may expose the business to complaints, regulatory action, penalties, withdrawal of the advertisement or other legal consequences. Option A is therefore correct because it identifies the risk of misleading advertising. Weather risk relates to climate conditions, wall risk is not a recognized advertising issue, and employee hobbies have no connection with the truthfulness of product claims. The company should verify evidence and communicate limitations honestly.

Related tags

Business-EnvironmentLegal-EnvironmentConsumer-ProtectionClass-12Legal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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