CARU Activities - Preferable to government intervention...

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CARU Activities General activities Review and evaluate child-directed advertising in all media Oversee online privacy issues that affect children Advise advertisers and agencies Maintain self-regulatory guidelines for children’s advertising 20-1
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Mission of the ERSP Discourage advertising and marketing in the electronic retailing industry that contains unsubstantiated claims Enhance consumer confidence in electronic retailing Demonstrate a commitment to meaningful and effective self-regulation 20-2
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Self-Regulation by Advertising Associations Actively Monitoring and Policing Advertising Practices American Association of Advertising Agencies American Advertising Federation Advertisers Agencies Media Advertising Clubs 20-3
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Self-Regulation by Media Many magazines refused this ad 20-4
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TV Network Guidelines for Children’s Ads 20-5
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Appraising Self-Regulation Can be more stringent standards than those imposed by legislation Encourages truthful, ethical, responsible advertising Effective regulatory mechanism
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Unformatted text preview: Preferable to government intervention Advertisers, Agencies, Media Takes too long to resolve complaints Problems with budgeting and staffing Lack of power or authority Self-serving to advertiser and media Critics 20-6 Federal Regulation of Advertising Federal Communications Commission (FCC) Food and Drug Administration (FDA) U.S. Postal Service Bureau of Alcohol Tobacco, and Firearms Federal Trade Commission (FTC) 20-7 Advertising and the First Amendment Speech promoting a commercial transaction is protected but must be truthful Freedom of speech or expression is the most basic federal law that governs advertising and promotion Speech must be balanced against competing interests such as advertising of harmful products 20-8 Federal Trade Commission Three Major Divisions • Consumer Protection • Economics • Competition Wheeler Lea Amendment (1938) Made Deceptive Practices Unlawful Created By FTC Act (1914) 20-9...
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