Advertising and Society:

Ethics, Regulation and Social

Responsibility

1
Advertising and Society
 Advertising’s visible social role makes it a
target for criticism.
 Some of today’s consumers believe that a
great deal of advertising is unethical
because it:
 Adds to the price of products,
 Is untruthful,
 Tricks people, or
 Targets vulnerable people.
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 Ethical Criteria
Numerous Advertising-Related Issues Are Left to the Discretion of
the Advertisers and Are Based on Ethical Concerns.

Advocacy
Advocacy
Advertising
Advertising Tries
Tries to
to Persuade
Persuade the
the Audience
Audience toto Do
Do
Something;
Something; ItIt is
is Not
Not Objective
Objective or
or Neutral.
Neutral.

Accuracy
Accuracy
Subtle
Subtle Messages
Messages Trouble
Trouble Critics
Critics Especially
Especially
When
When Aimed
Aimed At
At Groups
Groups Such
Such as
as Children,
Children, the
the
Elderly,
Elderly, or
or the
the Disabled.
Disabled.
Acquisitiveness
Acquisitiveness
Are
Are We
We Persuaded
Persuaded That
That We
We Continually
Continually Need
Need More
More
and
and More
More New
New Products?
Products? Consumers
Consumers Make
Make the
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the name
Final
Final Decision.
Decision.
The Problem of Being Ethical

Company's
Ethical Mission Marketing
Objectives
Decisions

Based On Reputation

Nonethical
Available
Decisions Resources
Competition
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Ethical Issues in Advertising

Puffery
Puffery
“Advertising
“AdvertisingOrOrOther
OtherSales
SalesRepresentations,
Representations,Which
Which Praise
Praise
the
theItem
Itemto
toBe
BeSold
SoldWith
WithSubjective
SubjectiveOpinions,
Opinions,Superlatives,
Superlatives,
or
orExaggerations,
Exaggerations,Vaguely
Vaguelyand
andGenerally,
Generally,Stating
StatingNo
NoSpecific
Specific
Facts.”
Facts.”

Taste
Taste and
and Advertising
Advertising

Product
Product Taste
Taste Current
Current
Categories
Categories Issues
Issues Issues
Issues
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Ethical Issues in Advertising

Stereotyping
Stereotyping in
in Advertising
Advertising

Women
Womeninin Racial
Racial&& Ethnic
Ethnic Senior
Senior Gay
Gay&&Lesbian
Lesbian
Advertisements
Advertisements Stereotypes
Stereotypes Citizens
Citizens Consumers
Consumers

Advertising
Advertising to
to Children
Children

Limits
LimitsSet
SetFor
For 33Hours
Hoursof
of
Controversial
Controversial Amounts
Amountsof of Educational
Educational
Topic
Topic Advertising
Advertising TV
TVPer
PerWeek
Week
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 Ethical Issues in Advertising
Advertising
Advertising Controversial
Controversial Products
Products

Tobacco
Tobacco Alcohol
Alcohol Gambling
Gambling

Subliminal
Subliminal Advertising
Advertising
AA Subliminal
SubliminalMessage
Messageis
isOne
OneThat
That is
isTransmitted
Transmittedin
inSuch
Suchaa
Way
WayThat
Thatthe
theReceiver
Receiveris
isNot
NotConsciously
ConsciouslyAware
Awareof
of
Receiving
ReceivingIt.
It.
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Regulatory Factors Affecting
Advertising (Fig. 2.1)

Legislation
Legislation
Social
Social
Responsibility/ Organized
Organized
Responsibility/ Groups
Self-Regulation
Self-Regulation Groups

Government
Government Advertisement Media
Media
Advertisement
Agencies
Agencies Groups
Groups

Audience
Audience
Protection
Protection company name
Federal Case Law Affecting
Advertising
First
First Amendment
Amendment Case
Case Law
Law
This
ThisProtection
ProtectionApplies
Appliestoto Commercial
CommercialSpeech,
Speech,Which
Which
is
isSpeech
SpeechThat
ThatPromotes
PromotesCommercial
CommercialActivity.
Activity.
That
ThatProtection
Protection is
isNot
Not Absolute.
Absolute.

Privacy
Privacy Case
Case Law
Law Developments:
Developments:
Online
Online Advertising
Advertising
Legal
LegalIssues
Issuesof
of Data
DataCollection
Collection Are
AreTroubling
Troubling
Consumers,
Consumers,Online
OnlineAdvertisers,
Advertisers,and
and the
the Government.
Government.
Online
OnlinePrivacy
PrivacyAlliance
AllianceHas
HasPublished
Published Guidelines.
Guidelines.
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 Advertising and the Federal
Trade Commission
The Federal Trade Commission’s (FTC) Main Focus, Regarding
Advertising, is to Identify and Eliminate Ads that are Deceptive or
Mislead the Consumer. Key Areas that Concern the FTC:

Deception
Deception

Reasonable
Reasonable Basis
Basis for
for Making
Making aa Claim
Claim

Comparative
Comparative Advertising
Advertising
Endorsements
Endorsements
Demonstrations
Demonstrations company name
Deception

 The current FTC policy on deception

contains three basic elements:
 Where there is representation, omission, or
practice, there must be a high probability that it
will mislead the consumer.
 The perspective of the “reasonable consumer”
is used to judge deception.
 The deception must lead to material injury.
 This policy makes deception difficult to prove.
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Reasonable Basis for Making a
Claim
 Determining the reasonableness of a claim
is done on a case-by-case basis. In general
the FTC considers the following factors:
 Type and specificity of claim made
 Type of product
 Possible consequences of the false claim
 Degree of reliance by consumers on the claims
 The type and accessibility of evidence available
for making the claim.
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Comparative Advertising
 The FTC considers comparative
advertising deceptive unless:
1. The comparisons are based on fact.
2. The differences advertised are statistically
significant.
3. The comparisons involve meaningful issues.
4. The comparisons are to meaningful
competitors.

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Endorsements
 An endorsement or testimonial is any
advertising message that consumers
believe reflects the opinions, beliefs, or
experiences of an individual, group, or
institution.
 Endorsers must:
 Be qualified by experience or training to make
judgments, and
 They must actually use the product.
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FTC Deceptive and Unfair
Advertising Remedies
Method
Method 1.
1. Consent
Consent Decrees
Decrees

Method
Method 2.
2. Cease-and-Desist
Cease-and-Desist Orders
Orders

Method
Method 3.
3. Corrective
Corrective Advertising
Advertising

Method
Method 4.
4. Substantiating
Substantiating Advertising
Advertising Claims
Claims

Method
Method 5.
5. Consumer
Consumer Redress
Redress

Method
Method 6.
6. Hold
Hold Advertising
Advertising Agency
Agency Legally
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Legally name
Responsible
Responsible
Advertising and Other
Regulatory Agencies
In Addition to the FTC, Several Other Federal Agencies
Regulate Advertisers and Their Agencies.

Food
Food and
and Drug
Drug Federal
Federal
Administration
Administration Communication
Communication
Commission
Commission
Additional
Additional Federal
Federal
Regulatory
Regulatory
Agencies
Agencies
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Social Responsibility
“Organization’s
“Organization’sTask
Task is
isto
toDetermine
DeterminethetheNeeds,
Needs,
Wants,
Wants,and
andInterests
InterestsofofTarget
Target Markets
Marketsandandtoto
Deliver
Deliverthe
theDesired
DesiredSatisfactions
SatisfactionsMore
MoreEffectively
Effectively
And
And Efficiently
EfficientlyThan
Than Its
Its Competitors
Competitors inin aaWay
Waythat
that
Preserves
Preservesor orEnhances
EnhancesthetheConsumer’s
Consumer’sand and
Society’s
Society’sWell-Being.” (48)by
Well-Being.” (48) byPhillip
PhillipKotler.
Kotler.

Level
LevelOne
One Level
Level Two
Two
Being
BeingSocially Advertiser
Socially Advertiserisis
Responsible
Responsibleisisaa Engaged
Business Engagedin in
Business Prosocial
Philosophy Prosocial
Philosophy Messaging
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Messaging name
 Different Levels of Self-
Regulation

Pure
Pure Co-opted
Self-Discipline
Self-Discipline Self-Regulation
Self-Regulation Self-Regulation
An
An Organization
Organization The
The Industry
Industry
Develops,
Develops, Industry Voluntarily
Develops,
Develops,
Uses,
Uses, and
and Involves Nonindustry
Uses
Uses and
and
Enforces
Enforces Norms
Norms People in the
Enforces
Enforces Development,
By
By Itself
Itself Norms
Norms Application, and
Enforcement of Norms

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