A Note on the Necessity of Rules for Misleading Representation: Experimental Evidence (2009.3)

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CPDP- 38-E(PDF:192KB)	"A Note on the Necessity of Rules for Misleading Representation: Experimental Evidence" (2009.3) Koki Arai (JFTC, Head of CPRC Secretariat) This paper examines the rules for misleading representation with an experimental approach using internet questionnaire data from a recent research paper. The findings indicate that consumers not close to the good or those who intend to purchase the good understand (alleged) deceptive advertising. Therefore, advertising regulation should protect the marginal consumer rather than the actual or potential purchaser from deceptive advertising. The findings therefore corroborate the rules for misleading representation presently applied in Japan and other countries. JEL classification codes: K13, L49, M37 Keywords: Rules of Misleading Representation, advertising, JFTC

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Contents，Author

"A Note on the Necessity of Rules for Misleading Representation: Experimental Evidence" (2009.3)
Koki Arai (JFTC, Head of CPRC Secretariat)
This paper examines the rules for misleading representation with an experimental approach using internet questionnaire data from a recent research paper. The findings indicate that consumers not close to the good or those who intend to purchase the good understand (alleged) deceptive advertising. Therefore, advertising regulation should protect the marginal consumer rather than the actual or potential purchaser from deceptive advertising. The findings therefore corroborate the rules for misleading representation presently applied in Japan and other countries.
JEL classification codes: K13, L49, M37
Keywords: Rules of Misleading Representation, advertising, JFTC