Ethics

Question 1

“Every Bottle Back” campaign

Answer 1

American Beverage Association said they separate out plastic bottles to recycle and make new ones

National Advertising Review Board told ABA to stop claiming this because they have no evidence of actually doing this
Not allowed to describe an aspirational process as if it’s happening now

Question 2

Caveat Emptor

Answer 2

Ads can say whatever they want, and it’s your responsibility to do research yourself
^^Attitude toward false advertising before FTC formation in 1914

Question 3

How does the Federal Trade Commission determine if an ad is deceptive?

Answer 3

Would it mislead a “reasonable consumer”? (typical person viewing the ad)
Does advertiser have proof to back up both “express” and “implied” claims?
Ex: FTC forced manufacturer of Listerine to run $10 million in corrective advertising

Question 4

“Made in USA”

Answer 4

Claim often made deceptively– products have parts that originate from different countries

Question 5

Implied claims

Answer 5

A claim made indirectly or by inference
Ex: “we prevent the germs that cause colds”
Advertisers must have proof to support both express and implied claims

Question 6

Liability can extend far beyond the manufacturer

Answer 6

Endorsers (celebrities or experts)
Ad agencies
BUT the media outlet that carries the ad is generally not viewed as liable
Unless the ad could result in great harm

Question 7

Types of ads FTC is most likely to focus on

Answer 7

Ads that make claims about health or safety
Ex: our sunscreen will reduce your risk of skin cancer
Ex: our filters remove harmful chemicals from tap water
POM juice was so misleading they are on watch for 20 years

Question 8

Puffery

Answer 8

Subjective, rather than objective, claims that no “reasonable consumer” would take seriously
We have the best-tasting juice! Vs…
75% of people prefer our juice

Question 9

Common penalties for false advertising

Answer 9

Cease-and-desist orders
Civil penalties
Corrective advertising, disclosures

Question 10

FTC rules on disclosures

Answer 10

Must be “clear and conspicuous”
Small print can’t be used to undo claims made in ad, or clear up misimpressions ad would otherwise leave
Fine to use small print/footnotes to clarify or elaborate upon statements made in ad

Question 11

Using norms to persuade

Answer 11

Descriptive norm: how people typically behave
Injunctive norm: how people should behave