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Advertising and Society

Chapter 3

Chapter Outline

I. Chapter Key PointsII. Advertising’s Social RoleIII. Review and Regulation of AdvertisingIV. Advertising’s Regulatory EnvironmentV. Media Review of AdvertisingVI. Self-RegulationVII. Advertising EthicsVIII.Determining What is Ethical

Key Points• Discuss the shape-versus-mirror debate• Analyze the legal topics that guide advertising

practice• List the key regulatory agencies and their

responsibilities• Explain the way the advertising industry

regulates itself• Critique the key ethical issues that challenge the

practice of advertising• Outline three ways to determine if an

advertising decision is ethical

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Advertising’s Social Role

• Does advertisingcreate a materialisticculture or does itsimply reflect it?

• Advertising canpotentially shape andmirror values

Skechers:Mirroring or Shaping Cool?

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Review and Regulation of Advertising

Figure 3.1

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Trademark Protection

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Copyright Protection

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First Amendment

• Commercial speech• Only truthful commercial speech is protected,

not misleading or deceptive statements

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Advertising’s Regulatory EnvironmentThe Federal

TradeCommission

RegulatingDeception

RegulatingSubstantiation

Remedies forDeception and

Unfair Advertising

MisleadingReasonableness

Injurious

Type of claimType of product

Possible consequencesDegree of relianceType of evidence

Consent decreeCease-and-desist orders

Corrective advertisingConsumer redress

Agency responsibility

The FTC:Advertising’s Primary Governing Agency

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Food and Drug Administration

• Oversees packagelabeling, ingredientlistings andadvertising for foodand drugs

• Watchdog for drugadvertising

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Federal CommunicationsCommission

• Can issue and revoke licenses to broadcastingstations

• Can ban messages that are deceptive or in poortaste

Other Regulatory Bodies

• Bureau of Alcohol, Tobacco, andFirearms

• U.S. Postal Service• States’ Attorneys General

The U.S. Postal Service:Does More than Deliver for You

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Provides controls for copyrightprotection

Library of Congresswww.loc.gov

Oversees trademark registration toprotect against patent infringement

U.S. Patent Officewww.uspto.gov

Division of the U.S. TreasuryDepartment that regulates advertisingfor alcoholic beverages

Bureau of Alcohol, Tobacco,and Firearmswww.atf.treas.gov

Regulates radio and televisionstations and networks

Federal CommunicationsCommissionwww.fcc.gov

Regulates packaging, labeling, andmanufacturing of food and drugproducts

Food and Drug Administrationwww.fda.gov

Regulates credit, labeling, packaging,warranties, and advertising

Federal Trade Commissionwww.ftc.gov

Effect on AdvertisingAgencySpecialized Government Agencies That Affect Advertising

Table 3.3

International Regulations

• Marketing practices vary in legal andregulatory restrictions

• International advertisers should havesomeone in the country who knows thelocal laws

Media Review of Advertising

• The media attemptsto regulateadvertising byscreening andrejecting ads

• The FirstAmendment givesany publisher theright to refuse topublish

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Self-Discipline

• Most advertisers and agencies have in-housereview procedures

• Every element of a proposed ad should beevaluated by an in-house committee or lawyers

The Advertising Review Council

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The NARB Appeal Process

Figure 3.2

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Self-Regulation with Outside Help

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Advertising Ethics

• A set of moral principles thatguide actions and create asense of responsible behavior

Key Issues

• Poor taste and offensive advertising• Stereotyping• Body and self image• Targeting children• Misleading claims and other message

strategies• Controversial products

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Advertising Ethics

• Poor taste andoffensive advertising

• Reinforcingstereotypes

• Body image and self-image

Advertising Ethics

• Targeting children• Misleading claims• Controversial

products

Determining What is Ethical

• The social ethic• The professional ethic• The personal ethic

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The 4As Creative Code

Figure 3.3

We, the members of the American Association of Advertising Agencies, in addition tosupporting and obeying the laws and legal regulations pertaining to advertising, undertaketo extend and broaden the application of high ethical standards. Specifically, we will notknowingly create advertising that contains:

• False or misleading statements or exaggerations, visual or verbal• Testimonials that do not reflect the real opinion of the individual(s) involved• Price claims that are misleading• Claims insufficiently supported or that distort the true meaning or practicableapplication of statements made by professional or scientific authority• Statements, suggestions, or pictures offensive to public decency or minority segmentsof the population.

We recognize that there are areas that are subject to honestly different interpretations andjudgment. Nevertheless, we agree not to recommend to an advertiser, and to discourage theuse of, advertising that is in poor or questionable taste or that is deliberately irritatingthrough aural or visual content or presentation. Comparative advertising shall be governedby the same standards of truthfulness, claim substantiation, tastefulness, etc. as apply toother types of advertising.

Chick-Fil-A:The Epitome of Social Responsibility

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Discussion Questions

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Discussion Question 1• Zack Wilson is the advertising manager for the

campus newspaper. He is looking over a layoutfor a promotion for a spring break vacationpackage. The headline says,– “Absolutely the Finest Deal Available This

Spring—You’ll Have the Best Time Ever If YouJoin Us in Boca.”

• The newspaper has a solid reputation for notrunning advertising with questionable claimsand promises

• Should Zack accept or reject this ad?

Discussion Question 2• The Dimento Game Company has a new basketball

video game. To promote it, “Slammer” Aston, an NBAstar, is signed to do the commercial. In it, Aston isshown with the game controls as he speaks these lines:– “This is the most challenging court game you’ve ever tried. It’s

all here—zones, man-to-man, pick and roll, even the alley-oop.For me, this is the best game off the court.”

• Is Aston’s presentation an endorsement?• Should the FTC consider a complaint if Dimento uses

this strategy?• What would you need to know to determine if you are

safe from a challenge of misleading advertising?

Discussion Question 3

• Find an ad that you think is deceptive oroffensive

• What bothered you about the ad?• Should the medium have carried it?• Who would act more effectively in

judging a case like this: the governmentor the advertising industry? Explain.

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Discussion Question 4• A pharmaceutical company has repackaged a previously

developed drug that addresses the symptoms of ascientifically questionable disorder.

• While few women are affected by the “disorder,” thecompany’s advertising strategy is comprehensive,including television, radio, and magazine ads.

• Millions of women with symptoms similar to those ofthe disorder have sought prescriptions for the drug. Inturn, the company has made billions of dollars.– What, if any, are the ethical implications of advertising a

remedy to a mass audience when the affected group is small?– Is the company misrepresenting its drug by conducting a

“media blitz”? Why or why not?