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Ads can promote unhealthy and biased ads can be

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-Ads can promote unhealthy and biased-Ads can be offensive stereotypesSocial Responsibility:Doing what society views as best for the welfare of people ingeneral or for a specific community of peopleEthical:Doing what’s right in a given situation, brands can share powerful messages“Black Lives Matter”GOVERNMENT REGULATIONSRegulations that Impact Advertising:-Local: city, county, state-National: federal-International: country laws
International Advertiser Considerations:-Commercial speech regulations in each country-Privacy protection requirements in Europe-Is puffery legal in this country?-Can sales, coupons, etc. be advertised year-round?-Language translation issuesU.S. Government Regulations: AdvertisingFreedom of “Commercial” Speech:-The U.S. Supreme Court distinguished between "speech" and "commercialspeech" in the 1942 case: Valentine vs. Chrestensen-Chrestensen wanted to distribute playbills in NYC and was stopped bypolice for littering-He argued he had a right to advertise due to free speech-Court argued this was "purely commercial speech" and should not beafforded the same First Amendment protections-Commercial speech doesn't receive the same level of protection aspolitical/personal speech-4-Part Central Hudson Test:used to determine if commercial speech should beregulated1. Does speech concern a lawful activity?2. Will the restriction serve a government interest?3. Does the regulation advance the government interest?4. Is the restriction no more than necessary?Additional Advertising Issues:-Tobacco: traditional and e-cigarettes-Advertising to children-Consumer privacy-Protecting consumer dataIssues of Advertising to Children:-Children are very impressionable and can be easily misled by ads Kids candevelop unrealistic expectations-To promote safe advertising to children, professional organizations help monitorand enforce rules:-Better Business Bureau (BBB)-Children's Advertising Review Unit (CARU
FTC (Federal Trade Commision):-Major regulator of advertising in the U.S. that was established by Congress-Enforces laws and regulations to fight against unfair and deceptive practices-Food and Drug Administration regulates food advertisingDeceptive Advertising:contains an omission, representation or practice that's likely toconfuse the consumerUnfair Advertising:consumer is injured due to lack of complete information or someother externalityComparative Advertising:Ads that claim superiority over competitors These ads arelegal as long as they're truthful and not unfair or deceptive. Ex: Verizon vs. AT&THow the FTC Investigates Suspected Violations (What they look for):-Substantiation:evidence that backs up claims in ads (ex. survey results, studies)-Endorsements or Testimonials:person must use product and if paid to promote,must be disclosed #ad #sponsored-Affirmative Disclosure:advertisers must disclose the product's limitations ordeficienciesRemedies for Unfair or Deceptive Advertising:-Consent Decree:document advertisers sign, without admitting wrongdoing, inwhich they agree to stop objectionable advertising-Cease and Desist Order:used if consent decree is refused...prohibits further useof the ads and sets future fines-Corrective Advertising:creating a new ad to correct the oldFDA:Food and Drug Administration Federal agency that oversees the labeling,packaging, and branding of packaged goods and therapeutic devices

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Term
Spring
Professor
WEIGOLD

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