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Ethical Dilemma: Nugabest Philippines' False Advertising

Essay by   •  August 13, 2012  •  Essay  •  1,127 Words (5 Pages)  •  3,008 Views

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Recently, Nugabest Philippines (G.T.B. Best Trading Inc.), a company that manufactures and sells beds, has been accused of false advertisements and misrepresentation of their products which influenced the minds of their customers. They said that their beds have a healing effect even to those with acute illnesses like hemorrhoid/hemia, urinary tract inspection, menstrual problem, infertility, ovarian cyst and myoma, weak lungs and asthma, prostate enlargement arthritis and joint pain. They even claimed and advertised through flyers and brochures the effects of their products as evidenced by a boost of immune system and the like (aligns spine, controls blood sugar, etc.). Also as part of their marketing strategy, Nugabest offers free trials but with a waiver of non-liability. With these, the sales of the said company spurred beyond expectations. However, the Department of Health (DOH) disproved the claims of Nugabest having no scientific basis. In fact, DOH has made a legal step by issuing "cease and desist order" to stop their deceptive and mendacious advertisements. In spite of this action by the DOH, the company had turned a blind eye to such accusations. With regard to the customers, their reactions and complaints are yet to be heard.

Vis-à-vis to the narrative above, there is a moral dilemma. The dilemma lies on the choice of the company to earn more profit to sustain their business or to be socially responsible. Truly, one of the hardest things to do for a company that is not well established is to compete with a sole advantage against the companies in the same industry. This is reflected through the desperate act of Nugabest to mislead their patron buyers in order to increase its market share but then they failed to consider the interest of the customer. Conversely, if they would be truthful, their product would be just a mere massage bed with no "magical" powers that attract customers and this would result to an investment prone to risk.

Based on the issue above, it is important to reiterate that Nugabest is a company trying to be more than average through false advertising. In response, the Department of Health ordered to discontinue the wrongful and unethical act. The target markets of Nugabest are the sick and those hopeful for full recovery. They are the ones affected by the dissemination of wrong information because instead of undergoing proper treatment, a patient would be duped into believing that the use of the beds would be enough to cure their illnesses. Nugabest is also affected because their acts could backfire and cause them their reputation and the patronage of their customers.

To address this concern, the company can have the following options to resolve the issue:

* Prove that the claims are true through innovation and research. (1)

* Respond to the order of the Department of Health, end the fraudulent marketing strategy and continue to market the massage beds. (2)

* Change the name and continue to do the same with the use of similar or different products.(3)

Regarding the first option, the common good is the foundation to which this option is anchored. This is because in proving the claims to be true through innovation and research both of the parties are benefited and no one is unjustly enriched to the expense of another. Likewise,

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