UNETHICAL ADVERTISING

AND MARKETING

BUSINESS ETHICS

AGENDA

INTRODUCTION

TYPES OF UNETHICAL ADVERTISEMENTS

APPLE, ACCC AGREE ON $2.25M 4G FINE

APPLE'S SIRI SUED AGAIN FOR EXAGGERATED ADS

GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR IMPROPER

MARKETING AND UNETHICAL BEHAVIOR

CONCLUSION & REFERENCES

INTRODUCTION

Ethics is a branch of philosophy which seeks to address

questions about

Morality

About concepts such as good and bad

Right and wrong

Justice and virtue

Reasons for Advertising

Increasing the sales of the product/service

Creating and maintaining a brand identity or brand image

Introduction of a new product or service

Increasing the buzz-value of the brand or the company

INTRODUCTION

Unethical Advertisement

When it has degraded or underestimated the substitute or

rival's product

When it gives false or misleading information on the value

of the product

When it fails to give useful information on the possible

reaction or side effects of the product

When it is immoral

TYPES OF UNETHICAL ADVERTISEMENTS

Type of Unethical Advertising and Marketing

Surrogate

Puffery

Exaggeration

Unverified claims

Women used as sex symbols for promoting products

Comparative advertisements

Use of children in advertising

Vulgar advertising

APPLE, ACCC AGREE ON $2.25M 4G FINE

Summary: Apple and the Australian Competition and Consumer

Commission (ACCC) have agreed that Apple should pay a

$2.25 million penalty for calling its iPads "4G", even though

they don't work on Australian 4G networks

Facts:

iPad with Wi-Fi and 4G could connect to Telstra's LTE network on:

Its web page and online store

Its own stores

Information and materials provided to resellers

Information and materials provided by Apple on reseller sites

APPLE, ACCC AGREE ON $2.25M 4G FINE

Impact:

Provided unconditional refunds to all potentially affected iPad

customers

Altered its worldwide marketing materials

Apple also changed the designator globally

Approach:

Utilitarian - An ethical decision is one that produces the

greatest good for the greatest number of people

APPLE'S SIRI SUED AGAIN FOR

EXAGGERATED ADS

Summary: Siri, the voice-activated personal assistant program

built into the Apple iPhone 4S, has been sued again for

allegedly overselling its abilities in advertising and TV

commercials

Facts:

False Claims of Siri is user friendly

Siri to make appointments,

Find restaurants

Even to learn the guitar chords to classic rock songs

Tasks as easily accomplished "just by asking" Siri,”

APPLE'S SIRI SUED AGAIN FOR

EXAGGERATED ADS

Impact:

Fine was paid

Advertisement was modified

Approach:

Utilitarian - An ethical decision is one that produces the

greatest good for the greatest number of people

Moral Right- An ethical decision is one that best maintains and

protects the fundamental rights and privileges of the people

affected by it

GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR

IMPROPER MARKETING AND UNETHICAL BEHAVIOR

Summary: GlaxoSmithKline (GSK), to pay $3 billion in criminal

and civil liabilities in the largest healthcare fraud settlement in

US history. GSK was caught promoting several drugs for

unapproved uses, failing to report safety data, paying

kickbacks to physicians, and price reporting

Facts:

Unapproved uses (or off-label uses) - Paxil

Failing to report safety data – Avandia

Kickbacks

GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR

IMPROPER MARKETING AND UNETHICAL BEHAVIOR

Impact:

Fine was paid

Prison to CEO, Managers and Executive

Global brand image was effected

Approach:

Utilitarian - An ethical decision is one that produces the

greatest good for the greatest number of people

References

http://www.zdnet.com/apple-accc-agree-on-2-25m-4g-fine-

1339339436/

http://www.hindustantimes.com/technology/PersonalTech-

Updates/Apple-s-Siri-sued-again-for-exaggerated-ads/SP-

Article1-832555.aspx

http://www.skepticalraptor.com/skepticalraptorblog.php/glax

osmithkline-fined-3-billion-fda-improper-marketing-unethical-

behavior/

THANK YOUBUSINESS ETHICS