企业道德(“宝黛体”).pptVIP

Regulations and Ethical Concerns Advertising Management PRA 4040 Elaine Lim Governmental Regulatory Agencies Federal Trade Commission (FTC) Food Drug Administration (FDA) Federal Communications Commission (FCC) US Postal Service (USPS) Bureau of Alcohol, Tobacco, and Firearms (ATF) Federal Trade Commission(FTC) Created in 1914 by passage of Federal Trade Commission Act Original intent was to enforce anti-trust laws FTC authority expanded in 1938 with Wheeler-Lea Amendment Given power to Stop unfair and deceptive advertising practices Levy fines Granted FTC access to courts to enforce their decisions Unfair and Deceptive Marketing Practices An advertisement or communication is deceptive or misleading if: a substantial number of people or typical person is left with false impression or misrepresentation. the misrepresentation induces people or the typical person to make a purchase. Deception versus Puffery Puffery An exaggerated statement Not factual statement Claim is a factual statement Puffery statements include Best, greatest, and finest Better – puffery or claim? Papa John’s – “Better ingredients, better pizza” Hunt’s – “Only the best tomatoes grow up to be Hunt’s” Progresso – “Discover the better taste of Progresso” Substantiation of Claims Claim or promise must be substantiated Endorser must be truthful Must represent endorser’s personal experience or opinion Expert endorsement must be based on legitimate tests PrinciplesSubstantiation of Claims Consumers read ads broadly Evidence must be for actual product Evidence from accepted experts FTC and courts will consider totality of evidence How an FTC Investigation Begins Complaints can be lodged by any of the following: Consumers Businesses Congress Media FTC Actions Consent order Company agrees to stop, but does not admit guilt Administrative complaint Filed if no consent order agreement Formal proceeding Administrative judge Both sides submit evidence Cease and desist order FTC Actions(continued)