Tackling false advertising and strengthening consumer protection in emerging economies

Abstract

False advertising has many negative consequences for the protection of consumer rights and wellbeing. In emerging economies in particular, false advertising has been widespread across business sectors and products due to inadequate public policy and ineffective law enforcement. Since the COVID-19 global pandemic has spread around the world, people have become more dependent on e-commerce for purchasing goods and services, and the negative impact has become historically high with increasing number of advertising and sales cyber-fakes However, prior studies have not focused on consumers’ perceived deception and information asymmetry in false advertising in general, and the consequent implications for public policy in controlling and eliminating such problems, specifically in emerging economies. This study focuses on the example of China as a leading emerging economy to investigate the relevant issues and contribute to extant knowledge by linking separate paradigms with a new holistic conceptual framework that identifies the key elements of contextual factors, consumers’ perceived deception and information asymmetry, the causes and impacts, and the expected policy implications for further prevention.