Volkswagen’s marketing-style jokes regarding the change of name to Voltswagen are considered to be misleading. Even to the detriment of the company. Such advertising activity has the potential to put the German car manufacturer in “serious” trouble.
Previously, Volkswagen in the United States had issued an official statement about changing its name to ‘Voltswagen’ which was later confirmed as a publication error.
The latest news on the content was an April Fools joke but it turned out to be out early. The result of the “kibble” advertising put the company at risk of violating US securities laws and even potentially receiving negative views from investors.
“This is not something a responsible global company should do,” said Charles Whitehead, Myron C. Taylor Alumni Business Law Professor at Cornell Law School, citing CNN.
The Joke Ended in Disaster
The use of the name Voltswagen was initially indicated as part of the company’s efforts to change the name. And some considered the strategy to introduce the company’s newest electric car.
Reportedly, after the name change statement appeared on Tuesday (30/2), Volkswagen shares had jumped nearly 10 percent back down. But one day later, Volkswagen’s shares fell nearly 4 percent.
Jonathan Richman, a partner at law firm Proskauer, said the hoax’s claims had to be substantiated, otherwise they meant to defraud the market.
“To prove the claim you have to prove intentions, which means that there is a conscious or at least very reckless disregard for the truth here. I would imagine that if this was really meant to be an April Fool’s Day joke it would be. It becomes very difficult to prove that Volkswagen meant it. deceive the market, “he said.
Read now: It’s A Prank! Volkswagen to ‘Voltswagen’ was Part of April Fool’s Day
