http://www.cbsnews.com/stories/2002/06/05/national/main511109.shtml

The McDonald’s “Beef Fries” incident is a prime example of taking advantage of the customer and bad business ethics. Since 1990, the fast-food giant claimed to have used only pure vegetable oil in the cooking of their fries. Problems arose when lawsuits were filed by various people in the Hindu and vegetarian communities. “Beef flavouring” was used to enhance the taste of McDonald’s french fries, which is a large concern for those who have dietary restrictions (such as Hindu’s or vegetarians), and cannot consume beef products. McDonald’s claimed that their fries were a 100% vegetarian product, but neglected to disclose the use of “beef flavouring” in the fries.

It is obvious to see the incentives of not disclosing a significant fact like “beef flavouring” to consumers when describing something as 100% vegetarian. If it is seen as vegetarian, consumers who would otherwise not purchase McDonald’s products, as many of them contain meat, now have a viable option at the fast-food chain. McDonald’s in this case took advantage of the consumer by not fully disclosing all the details of their products. If they had, many consumers would choose not to purchase McDonald’s fries simply because of their dietary restrictions, thus decreasing their revenues and profitability.