Lecture Advertising and promotion: An integrated marketing communications perspective (10/e): Chapter 20 - George E. Belch, Michael A. Belch

Chapter 20 - Regulation of advertising and promotion. The main goals of this chapter are: To examine how advertising is regulated, including the role and function of various regulatory agencies; to examine self-regulation of advertising and evaluate its effectiveness; to consider how advertising is regulated by federal and state government agencies, including the Federal Trade Commission.

George E Belch Michael A Belch

Copyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of

McGraw-Hill Education

Advertising Controls

Self Regulation

state Regulation

ad to offend, exploit, mislead, and/or

: Voluntary internal regulation promoted within an industry

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

usiness Bureau (BBB): Promotes fair

nd selling practices across industries at

Business Bureaus: Provide over advertising practices at the

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

of McGraw-Hill Education

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

tional Advertising Division of the Council

{f Better Business Bureaus (NAD)

product performance, superiority,

d technical claims

crutinize all types of media to find

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

of McGraw-Hill Education

7

¢ Advise advertisers and agencies

¢ Maintain self-regulatory guidelines

for children’s advertising

Mission of the ERSP

Enhance consumer confidence

in electronic retailing

Discourage advertising and marketing in the electronic retailing industry that

contains unsubstantiated claims

Demonstrate a commitment to meaningful

and effective self-regulation

Media

Advertising Clubs

ing Federation (AAF)

for truthful and responsible

d in advertising legislation uences agencies to abide by its code and rinciples

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent 12

of McGraw-Hill Education

Television and radio

¢ Major TV networks have incorporated the NAB codes into their standards

Federal Regulation of Advertising

Major Divisions of the FTC

Bureau of Competition

¢ Seeks to prevent business practices that restrain competition

¢ Enforces antitrust laws

Bureau of Consumer Protection

¢ Protects consumers against unfair, deceptive, or fraudulent

Deceptive Advertising

Likelihood of misleading consumer

Perspective of

reasonable consumer

Materiality —

misrepresentation or practice is likely to affect consumers

purchase decision

Bayer —

; BMW — Hàn wonee! drug “The ultimate

at WOr ‘S driving machine”

Ways the FTC Handles Deceptive

Additional Federal Regulatory

Bureau of Alcohol, Tobacco, and

The Lanham Act

bits any false description or representation

false advertising lawsuit containing a comparative

nts have been made about the advertiser’s or

e tendency to deceive a substantial nce

aterial or meaningful and can influence sions

dvertised products or services are sold in interstate

ne will incur loss of sales or of goodwill as a result of the false

tatements opy aha Sly ES i Education All rights reserved No reproduction or distribution without the prior written consent 20

of McGraw-Hill Education

ng with nutrition and health claims

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent 21

of McGraw-HIll Education

egulation of Sales Promotion

and sweepstakes - Marketers must ensure

stake cannot be classified as lottery

promotion is made

ould list its value as the price at which the

allowances

hould follow the stipulations of the Robinson-Patman Act

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent 22

of McGraw-Hill Education

Regulation of Direct Marketing

Marketing on the Internet

ed profiling of consumers by web

a major concern

ising Initiative (NAT)

nies that collect Internet usage

elf-regulatory codes

s Online Privacy Protection Act PA): Restricts collecting information from Idren via the Internet

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent 24

of McGraw-HIll Education

Regulation of Social Media

ing of personal information

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

of McGraw-Hill Education

Anti-Spamming Legislation

"= CAN-SPAM Act of 2003 email rules

" Conspicuous notice of the right to opt-out

" A functioning Internet-based mechanism that a recipient may use to opt out of future commercial e- mail messages

" Clear and conspicuous identification that the message is an advertisement

" A valid physical postal address for the sender