Chapter 2

Advertising and Society: Ethics,

Regulation, and Social Responsibility

Outline
• Advertising and society
• Ethical issues in advertising
• Advertising’s legal and regulatory environment
• Federal case law affecting advertising
• Advertising and the FTC
• Advertising and other regulatory agencies
• Social responsibility and self-regulation
 Advertising and Social
Responsibility

• Ethical issues
– Advocacy
– Accuracy
– Acquisitiveness
• Is being ethical a problem?

Chapter 2: Advertising and Society 2

 Social Responsibility

• Public service announcements (PSAs)

– Ad Council
• Social marketing

Chapter 2: Advertising and Society 3

 Six Key Issues in
Advertising

• Puffery
• Taste and advertising
– Product categories and taste
– Current issues

Chapter 2: Advertising and Society 4

 Six Key Issues in
Advertising

• Stereotyping in advertising
– Women in advertisements
– Racial and ethnic stereotypes
– Senior citizens
– Gay and lesbian consumers
• Advertising to children

Chapter 2: Advertising and Society 5

 Six Key Issues in
Advertising

• Advertising controversial products

– Tobacco
– Alcohol
– Gambling
– Prescription drugs
• Subliminal advertising

Chapter 2: Advertising and Society 6

 Federal Case Law
Affecting Advertising

• First Amendment case law

• Privacy case law developments: online
advertising

Chapter 2: Advertising and Society 7

 Advertising and the
FTC

• Federal Trade Commission (FTC)

– Some FTC responsibilities
• Deception
• Reasonable basis for claims
• Comparative advertising
• Endorsements
• Demonstrations

Chapter 2: Advertising and Society 8

 Advertising and the
FTC

• FTC deceptive and unfair advertising remedies

– Consent decrees
– Cease-and-desist orders
– Corrective advertising
– Substantiating advertising claims
– Consumer redress
– Hold the ad agency legally responsible

Chapter 2: Advertising and Society 9

 Advertising and Other
Regulatory Agencies

• Food and Drug Administration (FDA)

• Federal Communications Commission
(FCC)
• Additional Federal Regulatory Agencies
– U.S. Postal Service; Bureau of Alcohol,
Tobacco, and Firearms; U.S. Patent Office;
Library of Congress

Chapter 2: Advertising and Society 10

 Social Responsibility and
Self-Regulation

• Self-discipline
• Self-regulation: pure and co-opted
– National Advertising Division of the Better
Business Bureau (NAD)
– National Advertising Review Board (NARB)
• Local regulation
• Media regulation and advertising

Chapter 2: Advertising and Society 11