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					Advertising and Society
Part 1: Foundations Chapter 2

Chapter Outline
I. Chapter Key Points II. Advertising’s Social Role III. Review and Regulation of Advertising IV. Advertising’s Regulatory Environment V. Media Review of Advertising VI. Self-Regulation VII. Advertising Ethics VIII.Determining What is Ethical
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Key Points
• Discuss the shape-versus-mirror debate • Analyze the legal topics that guide advertising practice • List the key regulatory agencies and their responsibilities • Explain the way the advertising industry regulates itself • Critique the key ethical issues that challenge the practice of advertising • Outline three ways to determine if an advertising decision is ethical
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Advertising’s Societal Role
• Does advertising create a materialistic culture or does it simply reflect it?
– Critics believe that advertising has the power to shape social trends and the way people think and act – Advertising professionals believe advertising mirrors values rather than sets them

• Advertising can potentially shape and mirror values
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Review and Regulation of Advertising
Copyright Protection • Trademark • Copyright First Amendment • Commercial speech • Only truthful commercial speech is protected, not misleading or deceptive statements

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Advertising’s Regulatory Environment
Federal Trade Commission • Deceptive advertising

• Regulating deception • Regulating substantiation • Remedies for deception and unfair advertising

misleads customers by making claims that are false

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Advertising’s Regulatory Environment
Federal Trade Commission

• Regulating deception • Regulating substantiation • Remedies for deception and unfair advertising

• The advertiser should have a reasonable basis for making a product claim

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Advertising’s Regulatory Environment
Federal Trade Commission

• Regulating deception • Regulating substantiation • Remedies for deception and unfair advertising

• Consent Decrees • Cease-and-Desist Orders • Corrective Advertising • Consumer Redress • Advertising Agency Legal Responsibility

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Advertising’s Regulatory Environment
Food and Drug Administration Federal Comm. Commission

• Oversees package labeling, ingredient listings, and advertising for food and drugs • Watchdog for drug advertising

• Can issue and revoke licenses to broadcasting stations • Can ban messages that are deceptive or in poor taste

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Advertising’s Regulatory Environment
Other Regulatory Bodies International Regulations

• Bureau of Alcohol, Tobacco, and Firearms • U.S. Postal Service • States’ Attorneys General

• Marketing practices vary in legal and regulatory restrictions • International advertisers should have someone in the country who knows the local laws

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Media Review of Advertising
• The media attempts to regulate advertising by screening and rejecting ads • The First Amendment gives any publisher the right to refuse to publish • The Advertising Review Council designed the standards and guidelines used by major television networks

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Self-Regulation • Self-discipline • Industry selfregulation • Self-regulation with outside help
• Most advertisers and agencies have in-house review procedures • Every element of a proposed ad should be evaluated by an inhouse committee or lawyers

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Self-Regulation • Self-discipline • Industry selfregulation • Self-regulation with outside help
• National Advertising Review Council
– National Advertising Division – National Advertising Review Board

• Negotiates voluntary withdrawal of deceptive advertising

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Self-Regulation • Self-discipline • Industry selfregulation • Self-regulation with outside help
• Local Groups • Consumer Groups

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Advertising Ethics
• A set of moral principles that guide actions and create a sense of responsible behavior
• Six key issues
1. Poor taste and offensive advertising 2. Stereotyping 3. Body and self image 4. Targeting children 5. Misleading claims and other message strategies 6. Controversial products
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Advertising Ethics
Poor Taste/Offensive • Advertisers and media outlets must try to be sensitive to consumer objections • Creating guidelines for good taste is difficult • Sex in advertising Reinforcing Stereotypes • Diversity Issues • Gender Roles • Racial and Ethnic Stereotypes • Senior Citizens

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Advertising Ethics
Body and Self Image • Self-image advertising can contribute to selfimprovement • Can also lead to dangerous practices • Advertising mirrors and shapes the standard of attractiveness

Children
• One of the most controversial topics in the industry • Children are unable to evaluate advertising messages and make purchasing decisions

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Advertising Ethics
Misleading Claims • Advertising claims are unethical if they are false, misleading, or deceptive Controversial Products • Though it is acceptable to advertise these products, it is still offensive to some

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Determining What is Ethical
• The social ethic • The professional ethic • The personal ethic
• The “Golden Rule” • Social responsibility motivates a business to make a positive impact on society

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Determining What is Ethical
• The social ethic • The professional ethic • The personal ethic
• Industry standards help with a decision about what is ethically correct • A code of standards identifies how professionals should respond when facing an ethical dilemma

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Determining What is Ethical
• The social ethic • The professional ethic • The personal ethic
• Personal judgment and moral reasoning rests on an intuitive sense of right and wrong • Advertising professionals must be aware of industry standards as well as ethical questions

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