Upload
anand-dubey
View
221
Download
0
Embed Size (px)
Citation preview
8/8/2019 2.Lgal and Ethical Ads
1/25
Advertising and Society:
Ethics, Regulation, and
Social Responsibility
8/8/2019 2.Lgal and Ethical Ads
2/25
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
8/8/2019 2.Lgal and Ethical Ads
3/25
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
8/8/2019 2.Lgal and Ethical Ads
4/25
Advertising and
Social Responsibility
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
8/8/2019 2.Lgal and Ethical Ads
5/25
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
Social Responsibility
8/8/2019 2.Lgal and Ethical Ads
6/25
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
Social Responsibility
8/8/2019 2.Lgal and Ethical Ads
7/25
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
8/8/2019 2.Lgal and Ethical Ads
8/25
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
8/8/2019 2.Lgal and Ethical Ads
9/25
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
8/8/2019 2.Lgal and Ethical Ads
10/25
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
8/8/2019 2.Lgal and Ethical Ads
11/25
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
8/8/2019 2.Lgal and Ethical Ads
12/25
Advertising controversial
products
Products onceconsidered taboo are
now advertised, i.e.,
hemorrhoids and
feminine hygiene
brands
Six Key Issues in
Advertising
8/8/2019 2.Lgal and Ethical Ads
13/25
8/8/2019 2.Lgal and Ethical Ads
14/25
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
8/8/2019 2.Lgal and Ethical Ads
15/25
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
8/8/2019 2.Lgal and Ethical Ads
16/25
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
8/8/2019 2.Lgal and Ethical Ads
17/25
Advertisings Legal and
Regulatory Environment
8/8/2019 2.Lgal and Ethical Ads
18/25
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
8/8/2019 2.Lgal and Ethical Ads
19/25
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
8/8/2019 2.Lgal and Ethical Ads
20/25
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
8/8/2019 2.Lgal and Ethical Ads
21/25
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
8/8/2019 2.Lgal and Ethical Ads
22/25
Demonstrations
Demonstrations
must not mislead
consumers
Commercials can
make products
look unappetizing
Advertising
8/8/2019 2.Lgal and Ethical Ads
23/25
Social Responsibility
and Self-Regulation
Advertisers often follow a
societal marketing
approach
balance company profits,
consumer-want
satisfaction, and public
interest
8/8/2019 2.Lgal and Ethical Ads
24/25
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
Social Responsibility
8/8/2019 2.Lgal and Ethical Ads
25/25
NARB Appeal
Process