2.Lgal and Ethical Ads

8/8/2019 2.Lgal and Ethical Ads

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Advertising and Society:

Ethics, Regulation, and

Social Responsibility


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Advertising and society

Ethical issues in advertising

Advertisings legal and regulatory

environment

Federal case law affecting advertising

Advertising and the FTC

Advertising and other regulatory

agencies

Social responsibility and self-regulation

Outline


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Be able to:

Discuss the social issues advertisers face

List the key ethical issues that affect

advertising

Identify the main factors in advertisings

legal and regulatory environment

Summarize how the FTC and other federal

agencies govern advertising Debate whether advertising self-regulation

satisfies advertisers responsibility to

society

Objectives


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Advertising and


Ethical issues

Advocacy: Advertising

tries to persuade, it isnot neutral or objective

Accuracy: Advertising

claims are often a

matter of perception

Acquisitiveness:

Advertising is viewed

as a symbol of societys

preoccupation with

material things


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Is being ethical a problem?

Codes of ethics, rules, and regulations

offer advertisers some guidance Some questions are not clearly

covered by such guides

Advertising and



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Five questions for ethical advertising:

The target of an ad?

What should be advertised? The symbolic tone of an ad?

The relation between advertising and mass

media?

Advertisings conscious obligation to

society?

Advertising and



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Social

Responsibility Public service

announcements (PSAs)

Ads for a good cause thatrun free on broadcast media

Ad Council: nonprofit group

of ad agencies and media

Smokey the Bear

Just say no

Social marketing: using

advertising to communicate

about social programs


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Puffery

Advertising or other sales

representations, which praise the item tobe sold with subjective opinions,

superlatives, or exaggerations, vaguely

and generally, stating no specific facts

Hallmark: Send the very best

Sugar Frosted Flakes: Theyre g-r-eat

Six Key Issues in

Advertising


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Taste and advertising

Different things offend

different people Issues of taste can

extend to the product

itself

Todays questions of

taste center on sexualinnuendo, nudity,

vulgarity, and violence

Six Key Issues in

Advertising


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Stereotyping in advertising

Stereotyping is presenting a

group of people in anunvarying pattern that lacks

individuality

Does advertising shape

societys values or mirror

them? Issues include gender, racial

and ethnic stereotypes,

portrayals of seniors, gays and

lesbians

Six Key Issues in

Advertising


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Advertising to children

Children may view 20,000 commercials

a year Childrens Television Advertising

Practices Act 1990 Limits commercials in weekend kids

programming

Requires commercial breaks be distinguishedfrom shows

Six Key Issues in

Advertising


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Advertising controversial

products

Products onceconsidered taboo are

now advertised, i.e.,

hemorrhoids and

feminine hygiene

brands

Six Key Issues in

Advertising


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Six Key Issues in

Advertising Subliminal advertising

Subliminal messages

communicate symbols that

convey meaning but are sentbelow the threshold of

normal perception

Critic Wilson Key claims

embeds are placed in ads

to manipulate purchases

Research shows only mild

effects of subliminal stimuli

Experts: it doesnt work


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Ethical Issues

Ethical Issue Example

Social responsibility Advertising agency working pro

bono for the Red Cross

Puffery Retailer claims it has the best

merchandise in town

Bad taste Ad for topical medication shows or

describes the infected area in detail

Stereotyping Showing a handicapped consumer in

desperate need of help

Advertising to children Suggesting that wearing a sneaker

makes you more popular

Subliminal ads Embedding a sexual image so that it

isnt noticed on a conscious level


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Zack Wilson is the advertising manager for the

campus newspaper. He is looking over a

layout for a promotion for a spring break

vacation package. The headline saysAbsolutely the Finest Deal Available This

SpringYoull Have the Best Time Ever if

You Join Us in Boca. The newspaper has a

solid reputation for not running advertising

with questionable claims and promises.

Should Zack accept or reject this ad?

Question for

Discussion


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Advertisings Legal and

Regulatory Environment


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Deception

Deceptive advertising is a major focus

Deceptive acts include:

Deceptive pricing False criticisms of competing products

Deceptive guarantees

Ambiguous statements

False testimonials

Current policy on deception: High probability that consumer will

be mislead

Perspective: a reasonable consumer

Deception must lead to material injury

Advertising


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Reasonable basis for claims

Advertisers should have a reasonable

basis for a product performance claim.

Advertisers are expected to substantiate

claims

Factors for determining reasonableness:

Type and specificity of the claim

Type of product

Consequences of false claims

Reliance of consumers on the claims

Type and accessibility of evidence formaking the claim

Advertising


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Comparative advertising

Comparative ads highlight the superiority ofone brand over another

Lanham Act limits claims A false advertising suit requires proving

False claims were made about either brand

The ads actually or had the tendency todeceive

The deception was material The falsely advertised goods are sold in

interstate commerce

The plaintiff has been or will likely be injuredas a result of the false statements

Advertising


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Endorsements

Any advertising message that

consumers believe reflects the opinions,

beliefs, or experiences of an individual,

group, or institution

Endorsers must be qualified by training

or experience to make judgments and

must use the product

Product placements

The use of brands in movies or on TV,sometimes in exchange for a fee paidby the manufacturer

Advertising


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Demonstrations

Demonstrations

must not mislead

consumers

Commercials can

make products

look unappetizing

Advertising


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and Self-Regulation

Advertisers often follow a

societal marketing

approach

balance company profits,

consumer-want

satisfaction, and public

interest


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Self-discipline

Major advertisers and agencies have in-

house ad review procedures, codes of

behavior, criteria for acceptable ads

Pure self-regulation and co-opted self-

regulation

Advertising Review Council (ARC)

National Advertising Division of the BetterBusiness Bureau (NAD)

National Advertising Review Board (NARB)

Local and Media Regulation

Three Aspects of



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NARB Appeal

Process

Documents

2.Lgal and Ethical Ads