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ABSTRACT
Deceptive claims in advertising can cause serious damage to a firm's reputation. Prior research revealed that consumers who recognized deception in an advertisement in turn generally would develop a negative perception of advertising. The authors explore the issue of how a company can recover consumer trust after being caught in a deceptive advertising episode. In particular: GlaxosmithKline, among the world's largest pharmaceutical companies by turnover, pleaded guilty in 2007 in a New Zealand court to making misleading health claims relating to Ribena blackcurrant fruit drink. Lessons are derived from this high-profile case and the company's attempts to recover its reputation by means of television apology.
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