Wells, Burnett, Moriarty

1
Chapter 2Advertising and Society Ethics,
Regulation, and Social Responsibility

• Outline
• 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

2
Advertising and Social Responsibility

• Ethical issues
• Advocacy
• Accuracy
• Acquisitiveness
• Is being ethical a problem?

3
Social Responsibility

• Public service announcements (PSAs)
• Ad Council
• Social marketing

4
Six Key Issues in Advertising

• Puffery
• Taste and advertising
• Product categories and taste
• Current issues

5
Six Key Issues in Advertising

• Stereotyping in advertising
• Women in advertisements
• Racial and ethnic stereotypes
• Senior citizens
• Gay and lesbian consumers
• Advertising to children

6
Six Key Issues in Advertising

• Advertising controversial products
• Tobacco
• Alcohol
• Gambling
• Prescription drugs
• Subliminal advertising

7
Federal Case Law Affecting Advertising

• First Amendment case law
• Privacy case law developments online advertising

8
Advertising and the FTC

• Federal Trade Commission (FTC)
• Some FTC responsibilities
• Deception
• Reasonable basis for claims
• Comparative advertising
• Endorsements
• Demonstrations

9
Advertising and the FTC

• FTC deceptive and unfair advertising remedies
• Consent decrees
• Cease-and-desist orders
• Corrective advertising
• Substantiating advertising claims
• Consumer redress
• Hold the ad agency legally responsible

10
Advertising and Other Regulatory Agencies

• Food and Drug Administration (FDA)
• Federal Communications Commission (FCC)
• Additional Federal Regulatory Agencies
• U.S. Postal Service Bureau of Alcohol, Tobacco,
  and Firearms U.S. Patent Office Library of
  Congress

11
Social Responsibility and Self-Regulation

• Self-discipline
• Self-regulation pure and co-opted
• National Advertising Division of the Better
  Business Bureau (NAD)
• National Advertising Review Board (NARB)
• Local regulation
• Media regulation and advertising