Advertising Regulation. Who regulates? The FCCThe FCC The FTCThe FTC The FDAThe FDA The State Attorney GeneralThe State Attorney General Locally?Locally?

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Presentation transcript:

Advertising Regulation

Who regulates? The FCCThe FCC The FTCThe FTC The FDAThe FDA The State Attorney GeneralThe State Attorney General Locally?Locally?

What is regulated? Deceptive advertisingDeceptive advertising –False and Misleading Claims Unfair advertisingUnfair advertising –Unfair to competitors Affirmative disclosureAffirmative disclosure

How is advertising regulated? Ex post facto (after the fact)Ex post facto (after the fact) ReactionaryReactionary Responses to complaintsResponses to complaints –Most from competitors –Fewer from consumers

Penalties Violation of Federal Law - finesViolation of Federal Law - fines Cease and Desist OrderCease and Desist Order Consent DecreeConsent Decree Corrective advertisingCorrective advertising

Strictest review Children’s advertisingChildren’s advertising OTC medicationsOTC medications Packaged foodsPackaged foods

What is illegal to advertise in broadcasting? TobaccoTobacco FirearmsFirearms

Liquor Happy hour advertising is discouragedHappy hour advertising is discouraged Liquor pricing is discouragedLiquor pricing is discouraged No prohibition on advertising liquor productsNo prohibition on advertising liquor products

Of special concern Political advertisingPolitical advertising –Section 315 of the CA – “equal time” Professional advertisingProfessional advertising –Lawyers, doctors, accountants, etc.

Bait and switch Advertised prices or products that are not available.Advertised prices or products that are not available. Designed to lure consumers into the store with the intent to sell them something more expensive than they intended to buy.Designed to lure consumers into the store with the intent to sell them something more expensive than they intended to buy.

Puffery Some exaggeration is expected in advertising claimsSome exaggeration is expected in advertising claims Hyperbole is common in ad copyHyperbole is common in ad copy