Regulatory, Ethical, and Social Issues for
Integrated Marketing Communications
Advertising Regulation in Canada
Government Regulation
Government Regulation
Self Regulation
Self Regulation
CRTCCRTC ASCASC
Canadian Radio-Television and Telecommunications Commission (CRTC)
Mandate: To ensure that the Broadcasting Act of 1991 and the Telecommunications Act of 1993 are upheld throughout Canada.
Objective of each Act is to ensure all Canadians can receive broadcasting and telecommunications services.
CRTC and Advertising Regulations
Advertising limitsInfomercials900 NumbersAlcohol and drugs
CRTC and Advertising Non-Regulation
False or misleading adsInternet
Other Regulations
Regulation of Tobacco AdvertisingQuebec Regulations on Advertising to
Children
Advertising Standards Council (ASC)
A not-for-profit, self-regulatory industry body. Mandate is to create and maintain community
confidence in advertising. Standards Division:
Administers the industry’s self-regulatory codes. Handles complaints about advertising. Administers any disputes arising between
advertisers.
Canadian Code of Advertising Standards
“The Code” describes acceptable advertising. Pertains only to content of ads.
Does not limit promotion of legal products or the demonstration of products for their intended purpose.
Does not supersede any other laws or regulations. Intent: To provide standards for responsible and
effective advertising without minimizing the right of firms to advertise.
The Code
Complaint processSets standardsClearance
Clauses of the Code
1. Accuracy and Clarity
2. Disguised Advertising Techniques
3. Price Claims
4. Bait and Switch
5. Guarantees
6. Comparative Advertising
7. Testimonials
8. Professional or Scientific Claims
9. Imitation
10. Safety
11. Superstitions and Fears
12. Advertising to Children
13. Advertising to Minors
14. Unacceptable Depictions and Portrayals
Advertising and Promotion: Two Viewpoints
Creates Needs andWants Among
Consumers
Creates Needs andWants Among
Consumers
Promotes Materialism,
Insecurity and Greed
Promotes Materialism,
Insecurity and Greed
Is More PropagandaThan Information
Is More PropagandaThan Information
ProvidesInformationProvides
InformationCreates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher Standard
Of Living
EncouragesA Higher Standard
Of Living
PromotesCompetition in
The Marketplace
PromotesCompetition in
The Marketplace
Is More PropagandaThan Information
Is More PropagandaThan Information
Creates Needs andWants Among
Consumers
Creates Needs andWants Among
Consumers
Creates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher Standard
Of Living
EncouragesA Higher Standard
Of LivingProvides
InformationProvides
Information
Proponents Argue That Advertising and Promotion:
Proponents Argue That Advertising and Promotion:
Critics Argue That Advertising and Promotion
Critics Argue That Advertising and Promotion
PromotesCompetition in
The Marketplace
PromotesCompetition in
The Marketplace
Advertising and Promotion as Deceptive
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not
Perceive Ads As Honest or Believable
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Internet Scams and AbusesInternet Scams and Abuses
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium
Offers
Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Unethical and/or Deceptive Practices Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing
Advertising as Offensive or In Bad Taste
Objections to Advertising
Of Certain Products
Objections to Advertising
Of Certain Products
Use of SexualAppeals And/or
Nudity
Use of SexualAppeals And/or
Nudity
Objections to Advertising
Of Certain Products
Objections to Advertising
Of Certain Products
Use of SexualAppeals And/or
Nudity
Use of SexualAppeals And/or
Nudity
Use of Shock Ads
Use of Shock Ads
Many People Found Benetton’s “Sentenced to Death” Campaign Offensive
Advertising and Children
Children's TV Watching Behaviour
Children's TV Watching Behaviour
Children between ages 2-11 watch on average 15.5 hours of TV per week.
Children between ages 2-11 watch on average 15.5 hours of TV per week.
Television is an important source of information for children about products.
Television is an important source of information for children about products.
Perspectives on Advertising to Children
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Cannot Differentiate
Between Programs and Commercials
They Cannot Differentiate
Between Programs and Commercials
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
Children Must LearnThrough the Socialization
Process
They Cannot Differentiate
Between Programs and Commercials
They Cannot Differentiate
Between Programs and Commercials
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
They Lack the Knowledge and
Skills to Critically Evaluate
Advertising Claims
Need to Acquire Skills Needed
To Function in the Marketplace
Need to Acquire Skills Needed
To Function in the Marketplace
Consumer Advocates Argue That Children Are Vulnerable to
Advertising Because:
Consumer Advocates Argue That Children Are Vulnerable to
Advertising Because:
While Marketers Argue That:While Marketers Argue That:
Social and Cultural Consequences of Advertising
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Encourage Materialism?
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Make People Buy ThingsThey Don’t Need?
Is Advertising JustA Reflection of Society?
Is Advertising JustA Reflection of Society?
Advertising and StereotypingPortrayal of Women to Reflect Their Changing
Role in Society
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal ofWomen AsSex Objects
Portrayal ofWomen AsSex Objects
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Ethnic Stereotyping/
Representation of Minorities
Portrayal ofWomen AsSex Objects
Portrayal ofWomen AsSex Objects
Gender Stereotyping
Gender Stereotyping
Gender Stereotyping
Gender Stereotyping
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal of Women to Reflect Their Changing
Role in Society
Portrayal ofThe ElderlyPortrayal ofThe Elderly
Criticisms of Advertising
With Regard to Stereotyping
Criticisms of Advertising
With Regard to Stereotyping
What is your opinion of this ad?
Is This Woman Portrayed As a Sex Object?
Is This Woman Portrayed As a Sex Object?
Does This Ad ContainCues That Are Sexually
Suggestive?
Does This Ad ContainCues That Are Sexually
Suggestive?
Does This Ad Present an Image of Sexual Submissiveness?
Does This Ad Present an Image of Sexual Submissiveness?
Does This Ad ContainCues That Are Sexually
Suggestive?
Does This Ad ContainCues That Are Sexually
Suggestive?
Is This Woman Portrayed As a Sex Object?
Is This Woman Portrayed As a Sex Object?
Role of Advertising in the Economy
Making Consumers Aware of Products and Services
Making Consumers Aware of Products and Services
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Providing Consumers With Information to Use to Make
Purchase Decisions
Making Consumers Aware of Products and Services
Making Consumers Aware of Products and Services
Encouraging Consumption and Fostering Economic
Growth
Encouraging Consumption and Fostering Economic
Growth+
Economic Impact of Advertising
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on product costs and prices• Advertising as an expense that
increases the cost of products• Increased differentiation
Effects on product costs and prices• Advertising as an expense that
increases the cost of products• Increased differentiation
Effects on Competition• Barriers to entry • Economies of scale
Effects on Competition• Barriers to entry • Economies of scale
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Consumer Choice• Differentiation • Brand Loyalty
Effects on Competition• Barriers to entry • Economies of scale
Effects on Competition• Barriers to entry • Economies of scale
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