Advertising and Society: Ethics, Regulation and Social Responsibility

Advertising and Society Advertising’s visible social role makes it a target for criticism.Advertising’s visible social role makes it a target for criticism.

Advertising and Society Some of today’s consumers believe that a great deal of advertising is unethical because it: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.

Arguments for advertising:Arguments for advertising: –Advertising creates product improvements and new product development –Advertising aids consumers in making informed product purchases –Advertising revenues support a free press system –Advertising actually reduces the cost of products to consumers

Arguments against advertising:Arguments against advertising: –Advertising is largely unproductive to the general economy –Advertising’s primary goal is to persuade rather than inform consumers –Advertising does not affect the overall volume of spending but redirects consumption with no net economic gain

Ethical Criteria Accuracy Subtle Messages Trouble Critics Especially When Aimed At Groups Such as Children, the Elderly, or the Disabled. Accuracy Subtle Messages Trouble Critics Especially When Aimed At Groups Such as Children, the Elderly, or the Disabled. Acquisitiveness Are We Persuaded That We Continually Need More and More New Products? Consumers Make the Final Decision. Acquisitiveness Are We Persuaded That We Continually Need More and More New Products? Consumers Make the Final Decision. Advocacy Advertising Tries to Persuade the Audience to Do Something; It is Not Objective or Neutral. Advocacy Advertising Tries to Persuade the Audience to Do Something; It is Not Objective or Neutral.

Puffery “Advertising Or Other Sales Representations, Which Praise the Item to Be Sold With Subjective Opinions, Superlatives, or Exaggerations, Vaguely and Generally, Stating No Specific Facts.” Puffery “Advertising Or Other Sales Representations, Which Praise the Item to Be Sold With Subjective Opinions, Superlatives, or Exaggerations, Vaguely and Generally, Stating No Specific Facts.” Product Categories Product Categories Taste Issues Taste Issues Taste and Advertising Current Issues Current Issues Ethical Issues in Advertising

Stereotyping in Advertising Controversial Topic Controversial Topic Limits Set For Amounts of Advertising Limits Set For Amounts of Advertising Advertising to Children 3 Hours of Educational TV Per Week 3 Hours of Educational TV Per Week Ethical Issues in Advertising Women in Advertisements Women in Advertisements Racial & Ethnic Stereotypes Racial & Ethnic Stereotypes Gay & Lesbian Consumers Gay & Lesbian Consumers Senior Citizens Senior Citizens

Subliminal Advertising A Subliminal Message is One That is Transmitted in Such a Way That the Receiver is Not Consciously Aware of Receiving It. Subliminal Advertising A Subliminal Message is One That is Transmitted in Such a Way That the Receiver is Not Consciously Aware of Receiving It. Ethical Issues in Advertising Tobacco Alcohol Advertising Controversial Products Gambling

Advertising contributes to the transmission of values and socialization of norms within a societyAdvertising contributes to the transmission of values and socialization of norms within a society The Social Role of Advertising

Advertising has become an important component in persuading the public to embrace a number of social causesAdvertising has become an important component in persuading the public to embrace a number of social causes Use of Advertising for Social Causes

Social Advertising Advertising and Cause Related MarketingAdvertising and Cause Related Marketing –Social Marketing –Cause-Related Marketing Environment MarketingEnvironment Marketing

FTC and Advertisements Methods of FTC Enforcement Methods of FTC Enforcement Consumers, competitors, or the FTC staff file a claim of deceptive practices with the FTC Consumers, competitors, or the FTC staff file a claim of deceptive practices with the FTC The FTC begins its investigation The FTC begins its investigation A complaint is issued if the FTC finds the practice to be deceptive A complaint is issued if the FTC finds the practice to be deceptive The advertiser is asked to sign a Consent Decree The advertiser is asked to sign a Consent Decree

FTC and Advertisements The FTC issues a cease and desist order if an advertiser refuses to sign a consent decree The FTC issues a cease and desist order if an advertiser refuses to sign a consent decree The FTC may require a firm to run Corrective Advertisements The FTC may require a firm to run Corrective Advertisements If a company cannot reach agreement with the FTC, its next recourse is the Federal Courts If a company cannot reach agreement with the FTC, its next recourse is the Federal Courts