To paint a more clear picture of how this is happening. I work with sales reps to sell branded products and custom printed items such as table throws. I set up art to use as proofs for their customers. The images are linked so that I can keep the file size down for purpose of emailing and getting approval on the art. Sometimes art gets approved from a customer and the sales rep sends the files to the vendor. This has never been a problem in the past because it was always obvious that there was something missing. Now, it's not obvious that there is something missing because now a low quality place-holder image is being used. Yes, it would be nice if the vendor just sent back and email asking for the missing files. But in reality, these things sometimes just get printed with what they have unfortiunately. And yes, I know to adjust our communication for this new reality. I just don't know how many products have gotten printed with low quality images. The missing images were a great safeguard against these accidental mistakes. If there is a setting to prevent these low quality images from being created, I'd like to know what it is to help this to not happen.
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