Exam 6: The Regulatory and Ethical Environment of Promotions

Scenario 6-1 A group that calls itself Adbusters has a site on the World Wide Web. The site contains many pages that address issues of consumption and culture, media practices and corporate responsibilities. For example, "the momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It's now taking a toll beyond anything we could ever have imagined. What does it mean when one-sixth of the world's population consumes without any real restraint?" Throughout the website, there are many references to advertising's role in creating and maintaining this situation. Not surprisingly, virtually all of the references to the practice of advertising are negative. (http://www.adbusters.org/home/) -(Scenario 6-1) Some of the statements made by Adbusters echo the words of advertising historian Stephen Fox when he wrote, "One may build a compelling case that American culture is--beyond redemption--money-mad, hedonistic, superficial and rushing needlessly down a track called Progress." Fox concluded that

You have been asked to determine whether an advertisement is deceptive or not. It is important to remember that

Stephen Fox, chronicler of advertising history, maintains that

Scenario 6-3 "Consumerism is a pattern of behavior that helps to destroy our environment, personal financial health, the common good of individuals and human institutions" begins the first page on a World Wide website entitled "Overcoming Consumerism." It continues, "This site details ways that you can help defeat consumerism, save money, work less and lead a more satisfying and environmentally benign life while helping to restore the self-sufficiency of your community." (http://www.verdant.net/) As one travels from page to page in the site, advertising is often implicated as a source of the movement toward consumerism. Many of the same criticisms of advertising found in the site were outlined in the textbook. -(Scenario 6-3) The site urges people to buy the goods that they need at small businesses and from small manufacturers. This practice

Scenario 6-6 Students from several organizations on campus sponsored a forum to debate the pros and cons of advertising. Student organizations representing consumers, journalists, marketers, entrepreneurs, and political scientists all had members in attendance. Following are some of the comments made at the forum. -(Scenario 6-6) Another student said, "Hey, I don't like television advertising anymore than anyone else. But if I don't want advertising on my TV programming, I have to go out and rent a video or buy a pay-per-view program. I just can't afford to do that everyday." Which of the following pros of advertising is this comment most likely based on?

When critics argue that advertising is superficial, the main criticism is that

Scenario 6-6 Students from several organizations on campus sponsored a forum to debate the pros and cons of advertising. Student organizations representing consumers, journalists, marketers, entrepreneurs, and political scientists all had members in attendance. Following are some of the comments made at the forum. -(Scenario 6-6) One student said, "I am sick and tired of seeing nothing but supermodels advertising women's clothes. Nobody I know looks like that! They don't give me any indication of how I might look in their clothes." Which of the following cons of advertising is this comment most likely based on?

Some argue that one of the best aspects of advertising is its contribution to the society's art and culture, sometimes critiquing it and sometimes celebrating it.

The desire to restrict advertising to children is based on the concern that

This act does not outlaw all unsolicited email, but rather targets fraudulent, deceptive, and pornographic messages, which is estimated to make up about two-thirds of all commercial unsolicited email. Violators face jail time and fines up to $1 million.

Which of the following are regulatory issues in PR, direct marketing and e-commerce?

Scenario 6-4 The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this. The president replies yes. The agency proceeds to produce a series of television spots featuring the endorsement of a well-known celebrity. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning Rods--the finest rod ever cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims. The competitor files a complaint with the FTC. -(Scenario 6-4) The claim of 20 percent extra casting distance proves to be unsubstantiated. Who is held responsible for making that claim?

If supermodel Kate Moss endorses a line of Kmart clothing, the FTC requires that she actually use the product.

Medical research journals have published articles claiming survey data indicate that advertising "caused" young consumers to begin smoking, but all assessments by the FTC from the 1950s to the present indicate that the primary influences on the decision to smoke are family and peers.

Scenario 6-1 A group that calls itself Adbusters has a site on the World Wide Web. The site contains many pages that address issues of consumption and culture, media practices and corporate responsibilities. For example, "the momentum has clearly accelerated. By some measures humans have used more physical resources since World War II than in all of history before it. It's now taking a toll beyond anything we could ever have imagined. What does it mean when one-sixth of the world's population consumes without any real restraint?" Throughout the website, there are many references to advertising's role in creating and maintaining this situation. Not surprisingly, virtually all of the references to the practice of advertising are negative. (http://www.adbusters.org/home/) -(Scenario 6-1) Organizations like "Adbusters" encourage consumers to be proactive and contact government agencies to enforce regulations. This organization would want you to contact the FTC, because it:

To judge whether a particular instance of vertical cooperative advertising is a form of unfair competition, you must know if the advertising allowances involved represent hidden price concessions.

An advertisement for Ziploc freezer bags that compares this Johnson Family of Companies product with a competing product that is factual is viewed as illegal.

The argument that "advertising educates consumers" is supported by the claim(s) that

Which of the following is considered by advertising critics to be a con of advertising in society today?

In terms of advertising to children, which are areas of great concern?