Nike and Sky ads banned over misleading tactics

Published On Sep 24, 2024, 7:04 PM

The Advertising Standards Authority (ASA) has banned misleading online advertisements from Nike and Sky due to their use of 'dark pattern' tactics, which aim to manipulate consumer behavior by hiding or delaying crucial information. The ASA criticized Nike's ad for misleading shoppers regarding the availability of a discounted shoe, which was only offered in older children's sizes without VAT benefits. Similarly, Sky was penalized for automatically adding subscription options, making it easy for customers to overlook potential fees. The ASA's scrutiny reflects a growing concern about transparency in online advertising, and they are investigating these tactics further.

Stock Forecasts

With the ASA cracking down on misleading advertising, Nike might face reputational damage and potential sales impacts, as consumer trust is significant in the retail sector. However, if Nike can swiftly adapt its marketing practices and communicate transparently, it may mitigate negative effects.

Sky's exposure in this case may lead to increased scrutiny from regulatory bodies and could hinder subscription growth if consumers become wary of their practices. A continued backlash against misleading advertisements may negatively affect their stock in the short term.

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