Advertising and Society
Chapter 3
Chapter Outline I. Chapter Key Points II. Advertising’s Social Role III. Review and Regulation of Advertising IV. Advertising’s Regulatory Environment V. Media Review of Advertising VI. Self-Regulation VII. Advertising Ethics VIII.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 advertising create a materialistic culture or does it simply reflect it? • Advertising can potentially shape and mirror 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 Environment The Federal Trade Commission
Regulating Deception
Regulating Substantiation
Remedies for Deception and Unfair Advertising
Misleading Reasonableness Injurious
Type of claim Type of product Possible consequences Degree of reliance Type of evidence
Consent decree Cease-and-desist orders Corrective advertising Consumer redress Agency responsibility
The FTC: Advertising’s Primary Governing Agency
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Food and Drug Administration • Oversees package labeling, ingredient listings and advertising for food and drugs • Watchdog for drug advertising
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Federal Communications Commission • Can issue and revoke licenses to broadcasting stations • Can ban messages that are deceptive or in poor taste
Other Regulatory Bodies • Bureau of Alcohol, Tobacco, and Firearms • U.S. Postal Service • States’ Attorneys General
The U.S. Postal Service: Does More than Deliver for You
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Specialized Government Agencies That Affect Advertising Agency
Effect on Advertising
Federal Trade Commission www.ftc.gov
Regulates credit, labeling, packaging, warranties, and advertising
Food and Drug Administration www.fda.gov
Regulates packaging, labeling, and manufacturing of food and drug products
Federal Communications Commission www.fcc.gov
Regulates radio and television stations and networks
Bureau of Alcohol, Tobacco, and Firearms www.atf.treas.gov
Division of the U.S. Treasury Department that regulates advertising for alcoholic beverages
U.S. Patent Office www.uspto.gov
Oversees trademark registration to protect against patent infringement
Library of Congress www.loc.gov
Provides controls for copyright protection
Table 3.3
International Regulations • Marketing practices vary in legal and regulatory restrictions • International advertisers should have someone in the country who knows the local laws
Media Review of Advertising • The media attempts to regulate advertising by screening and rejecting ads • The First Amendment gives any publisher the right to refuse to publish
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Self-Discipline • Most advertisers and agencies have in-house review procedures • Every element of a proposed ad should be evaluated 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 that guide actions and create a sense 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 and offensive advertising • Reinforcing stereotypes • Body image and selfimage
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 We, the members of the American Association of Advertising Agencies, in addition to supporting and obeying the laws and legal regulations pertaining to advertising, undertake to extend and broaden the application of high ethical standards. Specifically, we will not knowingly 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 practicable application of statements made by professional or scientific authority • Statements, suggestions, or pictures offensive to public decency or minority segments of the population. We recognize that there are areas that are subject to honestly different interpretations and judgment. Nevertheless, we agree not to recommend to an advertiser, and to discourage the use of, advertising that is in poor or questionable taste or that is deliberately irritating through aural or visual content or presentation. Comparative advertising shall be governed by the same standards of truthfulness, claim substantiation, tastefulness, etc. as apply to other types of advertising. Figure 3.3
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 layout for a promotion for a spring break vacation package. The headline says, – “Absolutely the Finest Deal Available This Spring—You’ll 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?
Discussion Question 2 • The Dimento Game Company has a new basketball video game. To promote it, “Slammer” Aston, an NBA star, is signed to do the commercial. In it, Aston is shown 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 or offensive • What bothered you about the ad? • Should the medium have carried it? • Who would act more effectively in judging a case like this: the government or 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 a scientifically questionable disorder. • While few women are affected by the “disorder,” the company’s advertising strategy is comprehensive, including television, radio, and magazine ads. • Millions of women with symptoms similar to those of the disorder have sought prescriptions for the drug. In turn, 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?
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