This preview shows page 1. Sign up to view the full content.
Unformatted text preview: slation Advertising- and Promotion-Related Legislation
Promotion and advertising are aspects of marketing closely monitored by the Federal
Trade Commission (FTC), which was established by the FTC Act of 1914. The FTC
has been concerned with deceptive or misleading advertising and unfair business practices and has the power to (1) issue cease and desist orders and (2) order corrective
advertising. In issuing a cease and desist order, the FTC orders a company to stop practices it considers unfair. With corrective advertising, the FTC can require a company
to spend money on advertising to correct previous misleading ads. The enforcement
powers of the FTC are so significant that often just an indication of concern from the
commission can cause companies to revise their promotion.
A landmark legal battle regarding deceptive advertising involved the Federal Trade
Commission and Campbell Soup Co. It had been Campbell’s practice to insert clear
glass marbles into the bottom of soup containers used in print advertisements to bring
the soup ing...
View Full Document
- Spring '14