6th Class.pdf
Transcript of 6th Class.pdf
Advertising Regulation
ETHICAL ISSUES
Ethics are moral principles and values that govern the actions and
decisions of an individual or group.
Issues of manipulation, taste and the effects of advertising on values and
lifestyles.
Certain ads may be permitted by law but still be unethical.
Overt use of sex appeals and nudity in ads.
Misleading information and deception in advertising.
In India, Advertising Standards Council of India (ASCI) a self-regulatory
body, enforces the ethical code for advertisers. It also seeks to achieve fair
advertising practices in the best interests of the consumer.
Processing of Complaints at ASCI 1. Complaint is received by ASCI along with specimen or description of the offending ad
2. Advertiser and / or agency asked to comment on complaint and submit substantiation where
necessary
3. Substantiation received
4. Consumer Complaints Council considers complaint and reply
5. Consumer Complaints Council considers investigation report
6. Complaint held by CCC or Complaint not upheld by CCC
7. Assurance sought by ASCI from advertiser to withdraw advertisement
8. Assurance received 9. If assurance not received
10. Agency / media asked not to carry
advertisement
11. CCC’s decision and follow-up by ASCI conveyed to complainant
GUIDELINES OF ASCI
To ensure the truthfulness and honesty of representations and claims
made by the advertisers and to safeguard against misleading advertising.
To ensure that advertisements are not offensive to generally accepted
standards of public decency.
GUIDELINES OF ASCI (cont.)
To safeguard against indiscriminate use of advertising for promotion of
products, which are regarded as hazardous to society or to individuals to a
degree or of a type, which is unacceptable to society at large.
To ensure that advertisements observe fairness in competition so that the
consumers’ need to be informed on choices in the market-place and the
canons of generally accepted competitive behaviour in business both are
served.
ASCI – CODE OF CONDUCT
Ad should not be indecent or obscene
Gambling is prohibited
Ads must be honest and truthful (must not be misleading)
Ads must be protected from copying
Ads must not be against moral sense
It must conform to principles of fair competition
Ads must not conflict social behaviour
Prohibit ads which exploit national emblem or any part of the constitution
Use of celebrities should be limited
No ad should be presented as news
Advertising Regulation
Advertisement
Audience
Protection
Legislation
Organized
Groups Social
responsibility
Media
Groups
Government
Agencies
Guidelines for Comparative Advertising
The intent of the advertisement should be to
inform and never to discredit or unfairly attack
competitors, competing products or services.
When a competitive product is named,it should
be one that exists in the market place as
significant competition.
The Ad should never use partial results or stress
insignificant differences.
Deceptive and Unfair advertising Remedies
1.Consent decrees
The regulating agency simply notifies the
advertiser of its finding and asks the advertiser
to sign a consent decree
2. Cease- and- desist orders
Uses when the advertiser refuses to sign the
decree.
Issues an order that is similar to a court trial
The judge issues an order requiring the
respondents to cease their unlawful practices.
3. Corrective advertising
The agency orders the offending person or
organization to produce messages for
consumers that correct the false impressions
the Ad made.
The purpose of corrective advertising is not to
punish an advertiser but to prevent it from
continuing to deceive consumers.
4. Substantiating Ad claims
Advertisers need to validate any claims
when requested by the commission.
It is the responsibility of the advertiser
to show the reasonables of the claim.
5.Consumer redress
The agency or the commission can order
any of the following.
Cancellation of contracts
Refund of money
Return of property
Payment of damages
Public notification
6. Hold the Ad agency legally responsible
An agency is liable for deceptive
advertising along with the advertiser
when the agency was an active
participant in the preparation of the ad
and knew or had reason to know that it
was false or deceptive.
7. Regulation by consumer groups
Consumerism
8. Self –regulation
Advertiser also regulate themselves
Many industries maintain advertising
codes that companies agree to follow
What is the Economic Impact of Advertising?
Advertising: Adds value to products Keeps prices competitive Increases consumer demand
Primary demand Secondary demand
Stimulates the economy Encourages new products
The Abundance Principle: Advertising keeps consumers informed Advertising allows companies to compete more
effectively
What is the Social Impact of Advertising?
Truth in Advertising: Puffery
Refers to exaggerated, subjective claims that can’t be proven true or false
The subliminal myth
Unfair and Deceptive Practices:
False promises Incomplete description False and misleading comparisons Bait-and-switch offers Visual distortions False testimonials Partial disclosure Small-print qualifications
Ethics in Advertising
Ethical dilemma is: Any unresolved interpretation of an
ethical issue
Ethical lapse is: A clear case of illegal behavior
Consumerism is: Social action to dramatize the rights
of the general buying public
Social responsibility is: Doing what society views as best for
the welfare of the people in general or for a specific community of people
What is Unfair Advertising?
Unfair advertising occurs when:
A consumer is unjustifiably injured
There is a violation of public policy
There are unsubstantiated claims
Vulnerable groups are exploited