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If a company shows only successful cases in a health-product advertisement and hides its limitations, what risk does this show?

Answer and explanation

Correct answer: Selective and misleading disclosure

The governing concept is truthful disclosure under the legal environment, especially consumer-protection expectations. Showing only favourable cases while hiding important limitations can create a misleading overall impression, even if each displayed case is genuine. Consumers may believe that the product works universally, misunderstand its conditions of use or make decisions without material information. Therefore, option A is correct: the practice represents selective and potentially misleading disclosure and may expose the company to complaints, regulatory action, refund claims and reputational harm. The other options concern colour, weather or machinery and do not describe an advertising or information-transparency risk.

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

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