Expensive lessons from advertising that exaggerates product quality

The content of the incident is that Kera vegetable candy is advertised as a fiber and nutritional supplement suitable for children with poor appetite and busy adults. This product is manufactured by Asia Life Joint Stock Company and announced by Chi Em Rot Joint Stock Company. Kera candy, launched on the market at the end of 2024, quickly gained attention thanks to its massive advertising through livestreams by Quang Linh Vlogs, Hang Du Muc and Miss Nguyen Thuc Thuy Tien. During the livestream, Linh and Hang affirmed that one candy is equivalent to a plate of boiled vegetables, an effective alternative to vegetables.

Because the advertisement was too “exaggerated”, a consumer took the candy to be tested. The result was that a box of 30 candy pieces contained only 0.51 grams of fiber - a number too small compared to the advertisement that one piece was equal to a plate of vegetables. This information sparked a wave of indignation from consumers, and at the same time raised questions about the honesty of the product advertisement. Linh and Hang exaggerated the product's benefits, deceiving customers to make illegal profits.

The authorities then administratively fined Linh and Hang 70 million VND each for false advertising, causing confusion about product quality. Miss Thuy Tien, as a guest, was fined 25 million VND for not informing that she was sponsored to advertise the product; Chi Em Rot Joint Stock Company was fined 125 million VND for trading in goods that violated regulations on product labeling and declaration; Asia Life Joint Stock Company was fined more than 224 million VND for violating regulations on product production and declaration.

However, the case did not stop at administrative sanctions. After further investigation, Kera candy showed signs of being counterfeit and did not meet the additional standards as announced, so criminal proceedings were initiated and the subjects were temporarily detained.

According to Article 193 of the Penal Code, the crime of “Producing counterfeit food products” applies to the production of counterfeit food, foodstuffs, food additives and products related to consumer health, with a penalty of imprisonment from 2 years to life imprisonment or death penalty. Regarding the crime of “Deceiving customers”, according to Article 198 of the Penal Code, this crime applies to fraudulent acts in the purchase and sale of goods or provision of services such as false advertising to deceive consumers. Depending on the severity of the violation, the punishment will range from a warning, non-custodial reform, a fine of up to 500 million VND or imprisonment of up to 5 years.

Lessons can be drawn from the case about legal, economic, reputational, trust, compliance with laws and business ethics.

First, there are serious legal consequences. False advertising and selling counterfeit goods are not only subject to administrative penalties but can also be prosecuted. Online sellers need to understand that the law has a strict framework for dealing with acts of deceiving customers or producing counterfeit goods.

Economically, the damage far outweighs the immediate benefits. The profits made from inflating the value of a product are temporary, while the losses in compensation and property seizure can be enormous.

Not only that, they also lose their reputation and their long-term career. The reputation and personal image built over many years can collapse in an instant when they are discovered to be deceitful. For online sellers or CEOs, reputation is the most valuable asset, once lost it is very difficult to regain, even leading to the complete collapse of the career. Especially in business, customer trust is a vital factor. Inflating the value of a product can deceive customers in the short term, but when the truth is revealed, customers will turn their backs and spread negative information about the product and business.

“Once untrustworthy, forever untrustworthy”! Just one lie can cause many loyal customers to leave, affecting the business in the long term. On the other hand, lack of product quality control before advertising will put yourself at legal and ethical risk. All advertising and online sales activities must comply with legal regulations from product labeling to advertising content.

Finally, don’t compromise ethics for profit. A business based on honesty and social responsibility will be more sustainable than chasing short-term benefits through deception. Online sellers need to know that business ethics is not only a responsibility to customers but also to protect themselves from unnecessary risks. Therefore, only advertise products that are based on official testing or published results. Build long-term reputation, focusing on real value instead of gimmicks.

The above incident has sounded the alarm about the current situation of advertising that exaggerates product quality that is rampant on social networks. In the context of strong development of e-commerce, livestream sellers and CEOs need to be aware of their responsibility to consumers, while authorities need to tighten management to ensure that products circulating on the market are of good quality and that advertising information is truthful.

The arrest of Quang Linh Vlogs and Hang Du Muc is a valuable lesson about trust, responsibility and business ethics from famous people. This story will certainly leave a bad impression on the public and consumers about fraud in online shopping.

Tung Lam

Source: https://baoquangtri.vn/bai-hoc-dat-gia-tu-quang-cao-thoi-phong-chat-luong-san-pham-193021.htm