ADVPR 3100

o consumers have become increasingly skeptical of most forms of communication o adv and marketers have crafted more entertaining adv executions

2 main reasons for blurred lines in advertising

1. Pressures for short-term earnings as advertising with a short-term focus may use questionable messages and imagery to break through the clutter 2. Client pressures! 3. Pressures to get and keep new business, which can cause agencies to treat other agencies with a lack of respect

3 main reasons according to the AAA for the lack of respect for adv

♣ negative expressions, positive expressions, and not holding others sufficeinty accountable

3 types of moral muteness

• compartmentalization- seperates ones work life from ones personal life and convictions • clients always right- advertisers just want to provide what their clients want, even if its offense • ethics is bad for business- if they freaked out over every ethical issue, they couldn't get anything done, ads would be bland, • pandoras box syndrome - don't want to look at ethical issues because there are so many there, youll want to just get out of advertising all together

4 catagories of rationalization for moral muteness

♣ recognition- smart clients recognizie being ethical is good for their business , adverisers should make judgements and assert opinions like a trusted partner would ♣ communication- have to communicate directly about issues ♣ saying no- its okay to get fired ♣ moral imagination- envisioning moral alternatives

4 ways seeing and talking practitioners rationalize their beliefs

pseudo claim, comparison with unidentified other, comparison to the product to its earlier form, irrelevant comparison, pseudo survey

5 types of measurable claims

♣ Consumers are smart, no consumer would be dumb enough to believe an unethical ad so ads ethicalness shouldn't be questioned ♣ Passing the buck- or just blaming the people who create or enjoy the trends that they are centering around somewhat unethical ads, or blaming parents for letting kids watch the ads etc ♣ What is legal is moral- if its legal its moral so it shouldn't be questioned ♣ First amendment misunderstanding- right for free speech means to not censor advertisments ♣ Going native- becoming so close with the business that you fail to ask moral questions because they have lost their objectivity ♣ Ostrich syndrome- out of sight, out of mind (like ostrich with head in the sand) or ignorance is bliss

6 visions of moral myopia

1. Product testing 2. Consumer perception studies 3. Pricing 4. Testimonial evidences 5. Demonstrations

According to NAD, there are six primary areas that provide most of the challenges brought to the organization

o Use of invisible metatags by a marketer when the results are not identified as biased.

Ad-suits (paid search)

Product and advertising placement in TV shows, movies, sporting events, and video games

Advertainment

o Social issues linked with products o Social issues linked with corporations o Corporate donations to social issues

Advertisers can demonstrate they are socially responsible using 3 different types of advertising messages

Ads that appear to be information from an independent source. (prepared TV news stories; infomercials; print ads that appear to be editorial

Advertorials

oRecruitment of people to talk about the product before it is available to the general public. Done to encourage conversation about the product.

Buzz and viral marketing

Childrens Advertising Review Unit

CARU

1. Is the commercial expression eligible for first amendment protection? Meaning its neither deceptive nor promoting an illegal activity 2. Is the government interest asserted in regulating the expression substantial? -requires that the stated reason for regulating the adv must be of primary interest to the state rather than of the trival 3. If the first two test are met, the court then considers if the regulation of advertising imposed advances the cause of the governmental interest asserted? Meaning, if we assume that an activity is of legitmate government concern, will the prohibition of the commercial speech further the gov goals? 4. If the first three test are met, the court must finally decide if the reulation is more extensive than necessary to serve the gov interest - meaning, if there a less severe restriction that could accomplish the same goals? • In the central Hudson case, the first three guidelines were met, but failed the fourth part

Central Hudson four part test are

backed up by evidence

Claims have to be

♣ Targeting specific populations ♣ Children, elderly, ill, etc... ♣ Sensitive subjects (sex, rape, abortion, death, war etc...) ♣ Sexism and sexual imagery

Ethically questionable advertising practices:

federal trade commission -- ♣ passed in 1914 in reaction to public concerns over large firms driving out small competitors in a number of industries

FTC

1. Federal laws passed by congress 2. Formal FTC industry rules- issues rules in high profile industrys that affects the most consumers • Telemarketing sales rule- callers have to give caller id info, prohibits unauthorized billing/calls • Used car rul- prevent oral misprepresentations and unfair omissions of material facts by used car dealers concerning warranty coverage • Contact lens rule- patients must get copies of their presciptions 3. Areas of FTC inquiry for which guidelines have been issued are the following: • Environmental claims • The term free in advertising • Made in the USA • Advertising as a contract • Fact versus puffery • Testimonials - o Endorsements must always reflect the honest opinions of the endorser o When the ad represents that the endorser uses the product, they must be a user of it at the time the endorsement was given • Warranties and guarantees

FTC is responsible for enforcement and education in three areas:

1. must be a representation, or practice that is likely to mislead the consumer (doesn't have to be untrue to be deceptive) 2. the act or practice must be considered from the perspective of a consumer who is acting reasonably 3. the representation or practice must be material - meaning the claim if it it is not true, must be judged to have had some influence over a consumers decision ♣ Its rare that firms go beyond the cease and desist steps because they don't want unfavorable publicity

FTC uses three part test to determine if an adv is deceptive

♣ case where congress held that it also held that false adv was an unfair trade practice

FTC v Winsted Hoisery Company

♣ Can ask advertiser to sign a consent decree, or a document that does not admit to deception, yet acknowledges that the advertiser will stop running the sanctioned ad If the advertiser didn't follow the decree, the FTC can issue a cease and desist order mandate the advertiser to start running a corrective adv, or even take them to federal court

FTC's powers

♣ In-Feed units ♣ Paid Search units ♣ Recommendation Widgets ♣ Promoted Listings ♣ In-Ad ♣ Custom

IAB core six

Artistic expression, political speech, commercial speech, corporate speech, slander/hate speech

Kinds of speech and constitutional protection (5)

impactful to behaviors, or, attitudes and thoughts ex- A brand claims it does something, and I might go buy it because of that

Material

National advertising division- primary investigative unit used by NARC

NAD

order an advertiser to stop an ad, impose a fine, bar anyone from advertising, or boycott an advertiser or a product

NAD cannot...

national advertising review council- objective was to sustain high standard of truth in national advertising

NARC

o paid ads that are so cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the viewer simply feels that they belong

Native ads

artistic expression

Product placement has historically been treated as a form of

From a range of sources, including consumers, other advertisers, or FTC staff

So how does the FTC become aware of deceptive practices?

♣ - the process of using marketing techniques to persuade consumers to adopt the behaviors advocated by a social cause ---- promotes people to do something/have a certain life style

Social marketing

requires an agreement between a nonprofit and a for profit, the deal is struck to maximize perceived benefits to each partner ---- promotes product or brand

Socially responsible advertising

what is measurable or can be proven

Substantiation

o Ads that appear in the form of important account information from business with and existing relationship, sweepstakes, prize notices, or checks that are discount coupons.

Urgent ad-info

♣ Primary responsibility for truthful and nondeceptive advertising rest with the advertiser. ♣ Advertisements that are untrue shall not be used ♣ An adv. As a whole may be misleading although every sentence seperarely considered is literally true. Misrepresentation may result not onky from direct statements but also by omitting or obscuring a material fact

basic principles offer the following overview of the Better business bureau philosophy of self regulation:

less

buyers have ___ info then sellers, and should therefor need more protection

libertarian notion "let the buyer beware" based on the notion of free market place/no gov interference

caveat emptor

stated, implied or demonstrated

claims can be..

o a phenomenon in which members of a specific group (e.g., advertisers) face choices in which selfish, individualistic, or uncooperative decisions seem rational by virtue of short-term benefits, yet produce undesirable long-term consequences for the group as a whole

commons dilemma

doesn't say in what way

comparison of the product to its original/earilier form

nothing to compare it to

comparison with unidentified other

actionable, a lie and must be material, not necessarily a lie, not actionable

deception is ___ while puffery is ____

legal, ethical

deception is in the __ realm while manipulation is in the ___ realm

♣ absence of communicating moral concerns they feel in settings where such communication would be fitting

define "moral muteness" or silence

A distortion of moral vision ranging from shortsightedness to near blindness, which affects an individual's perception of an ethical dilemma

define "moral myopia" or nearsightedness

((((((:

do your best!

moral myopia" or nearsightedness , "moral muteness" or silence

drumwright and murphy found which two common ideologies on ethical issues in the workplace?

ethical dilemmas

drumwright and murphy tried to make sense of ___ in the work place

Agencies that openly encourage ethical decisions and actions

ethically active agencies "seeing and talking" practitioners

production placement ads

gets highest level of free speech protection in the U.S.

♣ Proximity/ placement ♣ Prominence ♣ Clarity of meaning

how do you make disclosures of sponsored content clear and prominent according to the FTC?

♣ investigations with the collection of substantiation from advertisers. ♣ For example, if "laundry detergent A" claims it makes white shirts brighter than "laundry detergent B," then "laundry detergent may have to provide some type of scientific evidence that it really produces these results!

how does the FTC begin its investigations

could be this is the only car in its class

irrelevant comparison

5th

o Advertisers are rated ___ on the least honest and ethical standards survery

♣ Alcohol ♣ Tobacco ♣ Food and beverages (fast food, high calorie/low nutrition) ♣ Gambling/Lottery ♣ Sexually oriented products ♣ Prescription Drugs

o Advertising of ethically questionable products or services:

less effective

o Although position of a sponsorship disclosure does affect ad recognition, the traditionally-recommended top-of-the-page position is ___ than further down the page.

♣ Product presentaions and claims ♣ Sales pressure ♣ Disclosures and disclaimers ♣ Comparative claims ♣ Endorsements and promotions by program and editorial characters ♣ Premiums, promotions and sweepstakes ♣ Safety ♣ Interactive electronic media

o CARU- work primarily deals with the following:

♣ Sponsored Social Media Posts ♣ Sponsored Links ♣ Sponsored Content

o Our 3 main categories

ethical

o Promoting knowlingly destructive products despite their being legal is an ___ dilemma

beep

o difference between moral muteness and moral myopia- person that does not really see a problem versus someone who sees a problem but avoids/doesn't discuss it with others

o Native advertising provides more relevant messages, increase consumer engagement, and generate awareness and buzz about products. It adds value for consumers. o Native advertising improperly exploits consumers' trust in a publisher or deceives them outright to influence their purchasing decisions.

positives and negatives of native ads

Actors/salespeople pretend to be ordinary people conducting survey to explain benefits, give consumers chance to try/sample the product.

posters

o advertising depicts life as timeless and placeless, models and actors are meant to be representations of a social type or demographic category so consumers could identify as a member of that category --♣ Michael Shudson

power of suggestion and capitalism realism

we are not told how

pseudo claim

who are these five?

pseudo survey

was created in 1914 to prevent unfair competition ... and to monitor and deter false, fraudulent, misleading, or deceptive advertising. ♣ originally for retail stores protection against unfair pricing practices by large national chains, but after "FTC v Winsted Hoisery Company" congress held that it also held that false adv was an unfair trade practice

role of the FTC

♣ There must be a representation, omission, or practice that is likely to mislead the consumer. ♣ The act or practice must be evaluated from the perspective of a reasonable consumer. ♣ The representation, omission, or practice must be material - that is, likely to affect a consumer's choice or use of a product or service OR in simpler terms: 1. must be a representation, or practice that is likely to mislead the consumer (doesn't have to be untrue to be deceptive) 2. the act or practice must be considered from the perspective of a consumer who is acting reasonably 3. the representation or practice must be material - meaning the claim if it it is not true, must be judged to have had some influence over a consumers decision

steps to FTC's three part test

1. there is a claim of deceptive practices to the FTC- complaint can come from anyone 2. FTC begins its investigation with a request for substantiation from the advertiser- at this point, many advertisers will come to an agreement with FTC 3. If the ftc finds the practice to be unsubstantiated/deceptive, a complaint is issued- advertiser is asked to sign a consent decree 4. If an advertiser refuses to sign a consent decree, the ftc issues a cease and desist order. 5. Even if an advertiser agrees to abide by a cease and desist order, the ftc may find that simply stopping a particular practice does not repair past damage to consumers. To counteract the effects, a corrective advertisement might be needed 6. If all these things are not agreed upon, it goes to federal court of appeals and then supreme court

steps to take if adv does not reach an agreement with FTC about an ad

1. Laws and regulations of legally constituted bodies such as congress and the FCC 2. Control by the media through adv acceptability guidelines 3. Self regulation by adv and agencies using various trade practice recommendations and codes of conduct

three basic constraints on advertising

when untrue of misleading advertising is disseminated, the implied relationship between the consumer and the advertiser is violated

what creates market failure?

♣ Direct financial support ♣ Increased awareness ♣ Validation ♣ Possibility of gaining volunteer workers since corporate employees may be encouraged to donate their time to supported causes

what do non profits have to gain from corporations to develop ad campaigns?

♣ Individual employees volunteer their time and skills to create free advertising for social causes ---made up of 50 media agencies

what does the Ad council do

o Systematically clarifying effects of disclosure and content design on recognition. o Identifying potential moderators of effects of recognition on advertiser and publisher perceptions. o Examining situational characteristics (device/processing schema; brand involvement, perceived brand fit)

what future research needs to be done in order to improve sponsored content disclaimers

• Articles on news websites or other Web content providers that resemble the format of original content on the site. • Often include featured brand or products, but not always very prominently. Occasionally not at all. When featured, not unlike review/opinion column • Sole distinguishing characteristic is disclosure statement that tells you it's advertising.

whats considered sponsored content

♣ broaded mandate to include the principle that the FTC could protect consumers as well as businesses from deceptive advertising

wheeler-lea amendments

o employees o stockholders o communities where the business operates and sells its products/services, and o consumers who buy the products/services.

who's all stake holders in a company

o Advertisers donate a percentage of their profits to a specific cause ... and this contribution may be the focus of the advertising message or one of several attributes featured in the message. o This third category is the most commonly occurring type of socially responsible advertising because most companies already have some type of donation policy in place.

♣ Corporate donations to specific issues

true

♣ People who want increased gov regulation first argue that embedded adv is inheririny deceptive and misleading- product placement and product integreation are not protected under the first amendment ♣ Most of the complaints fuled in the FCC rulemaking focus on the increased prevalence of embedded advertising or the fast scrolling tiny print of current disclosures ♣ Other agrue the advertisments in creative content could classify under "strict scruninty" which is the highest protection under the first amendment

o These types of messages feature social issues linked to companies, but without a link to a specific product or service. o These messages position the company as one that cares about and is involved with a particular issue.

♣ Social issues linked with corporations

o The socially responsible message becomes associated with the specific product, creating a valuable link in the minds of consumers.

♣ Social issues linked with specific products...

o In the past several years, consumers have become concerned with not only the purchasing process, but also the production and consumption process ♣ individuals are examining the degree to which scarce resources are used for making products and evaluating how products are developed, tested, and disposed of

♣ Socially responsible consumers