Advertising and Social Responsibility
! Ethical issues
! Advocate ! Accurate ! Acquire ! Is being ethical a problem?
Marketers encounter constant tension between:
The competitive drive to develop the most effective attention-grabbing messages possible The fear of crossing the line beyond what is legal, ethical, and socially acceptable
Ethics Ethics: Moral and value standards that act as behavioral guidelines for a societys citizens
!Unlike laws and regulations, ethical codes are generally not written down
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Is it unethical to -! Commit murder? -! Excetions? -! CONGRATULATIONS! -! YOU HAVE BEEN OFFERED A JOB! STARTING SALARY OF $ 50,000 -! WITH ALL THE BELLS AND WHISTLES.. -! YOUR CLIENT IS -! Marlboro dark mint flavored NXTa regular cigarette, but with a little something extra in the filter, so smokers can choose whether or not they want a menthol kick by pinching and breaking a tiny capsule. -! Target: young 20-35 adults.
Many concerns exist about advertising including:
! Drives up the cost of products ! Creates a barrier to market entry for small firms ! Merchandises too many aspects of our culture ! Sells inferior products ! Sells unhealthy, dangerous products ! Sets unrealistic expectations ! Is done in bad taste (including use of sex and violence) ! Invites censorship (by powerful advertisers) ! Creates visual pollution ! Pushes one countrys culture onto another
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Economic Effect of Advertising
The economic effect of advertising is like the opening break shot in billards
Positive Economic Effects of Advertising
! Value of Products Satisfies psychic and symbolic wants and needs
! Prices ! Competition ! Consumer Demand
! Consumer Choice educates ! Business Cycle
Social Responsibility
Doing what society views as best for the welfare of people in general or for a specific community of people
Social Responsibility
! Public service announcements (PSAs)
! Ad Council
! Social marketing
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Forest fire prevention
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Message For a Good Cause
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Social Impact of Advertising
Deception Subliminal Advertising Value System Proliferation of Advertising Use of Stereotypes Offensiveness
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Controversial Issues in Advertising
! Taste and advertising
! Product categories and taste ! Current issues
! Puffery
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Think About It
!Papa Johns claims, Better Ingredients; Better Pizza without substantiation !Should this puffery be permitted?
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Offensive Messages
Marketers have a range of creative options for their messages each with a trade-off
Safe but boring
Attentiongrabbingbut controversial, maybe offensive
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Offensive Message ?
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Some Issues in Advertising
! Stereotyping in advertising
! Women ! Racial and ethnic stereotypes ! Senior citizens ! Gay and lesbian consumers
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Good Bad Ugly Awards
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Does Mr. Cleans muscular physique imply that only a strong man can tackle dirt?
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Commercial Closet
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Multicultural Excellence Awards - Some advertisers get it right.
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Advertising to children
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Issues in Advertising
! Advertising controversial products
! Tobacco ! Alcohol ! Gambling ! Prescription drugs
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For use only with Duncan texts. 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
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http://www.thetruth.com/
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Subliminal advertising
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! Is this subliminal message intentional!
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How about this one? Intentional?! !
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! ! This poster was released in the mid 80s and prompted a total recall of all posters because of the picture painted in ice-cubes at bottom right corner - a woman performing an act. The graphic artist who designed the picture put this in as a joke, and it went through unnoticed until someone spotted it on the back of a Coke truck. The artist lost his job and was sued, and all promotional material had to be recalled and destroyed. Very rare and hard to get hold of released in South Australia in mid '80s. !
! !
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Tommy Bihn
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Advertising and the Law
The First Amendment - Freedom of Expression
!! !! !! !!
Speech vs. Commercial Speech Valentine v. Christensen (1942) Bigelow v. Virginia (1975) Virginia State Board of Pharmacy v. Virginia Citizens Council (1976) Bates v. St. Bar of Arizona (1977)
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!!
When can commercial speech be regulated?
When regulating truthful advertising about lawful products or services: The government must assert a substantial state interest to justify the regulation. The government must demonstrate that the regulation of advertising directly advances the state interest. The regulation must be narrowly drawn, no more extensive than is necessary to serve the interest asserted by the state.
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Advertising and the FTC
! Federal Trade Commission (FTC)
! Wheeler-Lea Amendment ! FTC authority over both "unfair methods of competition" and "unfair or deceptive acts or practices."
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The FTC:
Advertisings Primary Governing Agency
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Advertisings 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
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The Federal Trade Commission (FTC)
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Deception !! Must mislead the consumer !! Reasonable Consumer !! Must lead to material injury Unfair Advertising
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Causes or is likely to cause..substantial injury to consumers Which is not reasonably avoidable by consumers And is not outweighed by countervailing benefits to consumers or to competition
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Skechers, the company that made those extremely popular Shapeups toning shoes, has agreed to pay $40 million in refunds to settle charges of deceptive advertising brought by the Federal Trade Commission. May 2012
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!!Substantiation !!Comparative Advertising
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Sharin before
Sharin after Name Age Height Was Lost Weight As of Sharin 41 5'7" 175.2 lbs 27.8 lbs* 147.4 lbs 9/18/2008
*Results Not Typical After
10/09 Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as results not typical the revised Guides no longer contain this safe harbor.
http://www.ftc.gov/bcp/edu/microsites/redflag/
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!!Endorsements !!Demonstrations
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! FTC deceptive and unfair advertising remedies ! Consent decrees ! Cease-and-desist orders ! Corrective advertising ! Substantiating advertising claims ! Affirmative Disclosure ! Consumer redress ! Is the ad agency legally responsible?
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! ! ! ! !
Lugz to Apple: 'Cease and Desist'! November 04, 2005! Apple's spot with Eminem.! NEW YORK Lugz footwear said it has sent a cease-and-desist letter to both Apple Computer and its agency, Omnicom Group's TBWA\Chiat\Day, over similarities between a commercial "Arrow," which the company aired in 2002, and a spot with Eminem that launched earlier this month for Apple's iPod and iTunes.! Both television ads feature urban images on a red, yellow and orange background, with black silhouettes and a hip-hop soundtrack [Adweek, Oct. 24].!
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1. Identity Theft (42%)! 2. Internet Auctions (10%)! 3. Internet Services and Computer Complaints (7%)! 4. Shop-at-Home and Catalog O"ers (6%)! 5. Advance Fee Loans and Credit Protection (5%)! 6. Prizes/Sweepstakes/ Gifts (4%)! 7. Business Opportunities and Work at Home Plans (4%)! 8. Foreign Money O"ers (4%)! 9. Magazines and Buyers Clubs (3%)! 10. Telephone Pay-PerCall/Information Services (2%)!
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Other Government Agencies
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The Federal Trade Commission (FTC) The Food and Drug Administration (FDA) The Federal Communications Commission
(FCC)
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Patent and Trademark Office
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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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February 11, 2009 FDA Requires Corrective Ads on Yaz Contraceptive Bayer recently launched commercials for the contraceptive drug Yaz that feature a female spokesperson and begin with a statement that the FDA thought Bayers previous ads were inadequate and asked Bayer to clear up a few things. The F.D.A. wants us to correct a few points in those ads. Im pretty sure thats the first time Ive noticed an explicit the FDA made us do this message in a drug ad. The FDA really did make them do it, though, issuing a warning letter [PDF] last October stating that The TV Ads are misleading because they broaden the drugs indication, overstate the efficacy of YAZ, and minimize serious risks associated with the use of the drug.
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! Olestra molecules, made of sugar and vegetable oil, are too big to be digested, so they leave behind no calories. The articial fat slides through the body without stopping to clog arteries or pad waistlines.! ! ! Unfortunately, critics said, it could slide through the body without stopping at all. The Center for Science in the Public Interest (CSPI) warned of something it referred to as "anal leakage;" the FDA required a label warning of "abdominal cramping and loose stools." !
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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
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Specialized Government Agencies That Affect Advertising
Agency Federal Trade Commission www.ftc.gov Food and Drug Administration www.fda.gov Federal Communications Commission www.fcc.gov Bureau of Alcohol, Tobacco, and Firearms www.atf.treas.gov U.S. Patent Office www.uspto.gov Library of Congress www.loc.gov
Table 3.3
Effect on Advertising Regulates credit, labeling, packaging, warranties, and advertising Regulates packaging, labeling, and manufacturing of food and drug products Regulates radio and television stations and networks
Division of the U.S. Treasury Department that regulates advertising for alcoholic beverages Oversees trademark registration to protect against patent infringement Provides controls for copyright protection
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State and Local Government
! Michigan
! Consumer Protection site ! Item Pricing Bill of Rights
- voted out
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Social Responsibility and Self-Regulation
! Self-discipline
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Media Groups
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Television Radio
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Magazines Newspapers
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PETA
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Organized Groups
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National Advertising Review Council (NARC)
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National Advertising Division (NAD) site
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National Advertising Review Board (NARB)
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The NARB Appeal Process
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Lee Einsidler, executive vice president of sales and marketing for Sidney Frank :
! "Just because [the NARB has] made a determination, we're not bound to follow it. ! !if [Belvedere is] concerned about their new rankings, they should go advertise that."
SOURCE: AdAge.com
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Steve Gill, Millennium Import Co. president:
! "We have been damaged by these deceptive and misleading ads." ! "We intend to prove in a court of law that [Sidney Frank] has misled consumers ... and garnered revenue which has been gained based on deception."
SOURCE: AdAge.com
! Since Sidney Frank told the NARB that it has no intention of complying, the board referred the case to ! the Federal Trade Commission ! the Alcohol and Tobacco Tax and Trade Bureau (a spinoff of the Bureau of Alcohol, Tobacco and Firearms).
SOURCE: AdAge.com
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
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Self-Regulation
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American Association of Advertising Agencies
(AAAA)
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American Advertising Federation (AAF) Association of National Advertisers (ANA)
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Consumer Groups Oversight
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7UP Commercial Taken O" the Air, Hollywood.com, May 24, 2002.! ! LOS ANGELES-- A 7UP commercial that drew protests from the L.A.-based group Stop Prisoner Rape and other organizations for making light of prison sexual abuse will be taken o" the air, a 7UP spokeswoman said today.! ! Dr. Pepper/Seven Up, Inc. has notied all networks to pull the commercial, called "Captive Audience," as soon as possible, according to Philippa Dworkin, the vice president of corporate communications for the company. !
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Summary
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Advertising Affects the Economy Advertising is Something Other than Speech Advertising is Heavily Regulated Within Society
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