Forever Ageless,a cosmetic manufacturer,introduces a new range of anti-wrinkle creams.The company pays slotting allowances to a retailer in advance to ensure that its products are placed at the front counter of the store where sales are much greater than along the aisle.This act by Forever Ageless is an ethical and legal concern associated with _____.

Question

Quizplus · Accepted Answer

The act of paying slotting allowances to retailers to ensure product placement at the front counter is a sales promotion strategy. However, slotting allowances have been a controversial issue as they can potentially create unfair competition and limit the access of smaller or newer brands to the market. Nevertheless, this practice is not illegal, and companies can use it as a way to increase their products' visibility and sales. Therefore, the ethical concern associated with this action is whether it aligns with the principles of fair competition and business practices.

Forever Ageless,a Cosmetic Manufacturer,introduces a New Range of Anti-Wrinkle Creams