advertising: legal, ethical and economic aspects
TRANSCRIPT
ADVERTISING:
Legal, Ethical and
Economic Aspects
LAWS AND ETHICS
Two forms of oversight are:
ETHICAL
What we SHOULD do
LEGAL
What the law allows
Ethics are usually the higher standard
Violations of ethical principles results in laws
DEONTOLOGY - Gk. deon - obligation
•Focus is on the means
•Kant’s categorical imperative
“Do unto others”
equity, justice, fairness
Catholicism and Judaism
Concern about the least able
Ethical Perspectives
Ethical Perspectives
TELEOLOGY -- Gk. telos - end
•Focus is on the ends
•Utilitarianism
The greatest good for the greatest number
Cost - Benefit analysis
The “Protestant Ethic”
“Caveat emptor”
• Let’s use two distinct names for “ethical”:
– MORAL
• the means are good
OR
– JUSTIFIABLE
• the ends justify the means
Ethical Perspectives
Avenues for Oversight
•GOVERNMENT REGULATION:
•[pass and enforce laws]
•SELF-REGULATON:
•Independent bodies [set standards]
•Media companies [to accept ads]
•OTHER:
•Buyer Recourse [“caveat emptor”]
Government Regulation
Federal laws Canadian Radio-Television Comm. (CRTC)
Advertising limits, Infomercials, 900 numbers
Alcohol, Tobacco and Drugs
Provincial laws Alcohol Regulations Credit and Loan Disclosures Unfair Trade Practices Act
Self-Regulation:
CANADIAN CODE OF ADVERTISING STANDARDS
• Accuracy and clarity
• “Disguised advertising”
• Deceptive price claims
• Bait and switch
• Guarantees and warranties
• Honest testimonials
• Imitation
• Taste and decency
Advertising Standards Canada
146 Upheld
177 To Council
1210 Code issues1809 Complaints
(1153 ads)
2011 Complaints
Leo Burnett
ECONOMIC EFECTS OF ADVERTISING
“To me it means that if we believe to any degree whatsoever in the economic system under which we live,
in a high standard of living and in high employment, advertising is the most efficient known way of moving goods in practically every product class.”
“Advertising, of course, makes
possible our unparalleled variety
of magazines, newspapers,
business publications, and radio
and television stations.”
Leo Burnett
“It must be said that without advertising we would have a far different nation, and one that would be much the poorer-not merely in material commodities, but in the life of the spirit.”
Leo Burnett
Excerpts from a speech given April 20,1967 at the American Association of Advertising Agencies’ 50th anniversary
Quote of the day
If you tell lies about a product you will be
found out – either by the government,
which will prosecute you, or by the
consumer, who will punish you by not
buying your product a second time.
• David Ogilvy
(Ogilvy & Mather)