L12 - Social, Ethical and Regulatory Aspects of Advertising Flashcards
Concerns about Advertising:
- Overemphasizes materialism
- Increases the costs of goods and services.
- Perpetuates stereotypes
- Makes unsafe products, such as alcohol and tobacco, seem attractive.
- Often offensive.
- Advertising to children is unethical.
- Misleading and deceptive advertising
Advertising and Society:
- Marketing communication is intimately connected with the social and cultural environment
- Advertising is a powerful source with potential to offend
- Marketers must often make decisions about what is appropriate
- Marketers must consider the social, legal and regulatory issues that affect their activities
The Shape-Versus-Mirror Debate:
Does advertising create a materialistic culture or does it simply reflect it?
- Critics believe that advertising has the power to shape trends and the way people think
- Advertisers believe advertising mirrors values rather than sets them
Advertising can potentially shape and mirror values
Ethics and Law:
- Ethics are moral principles and values that govern the actions and decisions of an individual or group.
- Laws are formal, codified rules that are recognised as binding on a community.
Activities that are lawful may not be ethical!
Ethical Issues in Advertising:
- Brand infringement
- Medical marketing
- Gifts and bribery
- Spamming and cookies
- Targeting vulnerable markets
- Privacy
Two perspectives…..

Poor Taste and Offensive Advertising:
A personal issue and creating guidelines is difficult
Portrayal of People:
A stereotype represents a cultural groups’ trait or traits in a way that may or may not be accurate; it may shape or reinforce a cultural value
Sex, Sexuality and Nudity:
Advertising that portrays women or men as sex objects may offend
Diversity Issues:
The portrayal of society should be accurate and representative of society
Gender Roles:
The way women and men are cast as characters in adverts and programs can create or reinforce cultural stereotypes
Racial and Ethnic Stereotypes:
Inclusion of certain races and ethnic groups in advertising is rare
Age Discrimination:
Two groups subject to stereotyping are baby boomers and seniors, often portrayed negatively
Violence:
This includes startling images and shock tactics
Targeting Children:
This is a most controversial topic with serious issues such as promoting unhealthy lifestyles in advertising food and beverages

Language and Vulgarity:
This may include swearing, inappropriate language and blasphemy
Health and Safety:
Views are influenced by events in society e.g. glorification or glamorous looks in men and women, very thin models and showing muscular bodies that can only be acquired in reality by the use of steroids
Advertising to children - 2 views:

Advertising, children and regulations:
There are specific rules for advertising to children: the Children’s Television Standards (CTS) and the AANA Code for Advertising to Children, which recognises the special consideration needed for presenting material which may be harmful to children.
The Australian Communications and Media Authority (ACMA) has strict guidelines:-
- advertising banned on preschool programs
- no alcohol advertising
- restrictions on prizes and competitions
- the number of times a commercial can be broadcast during children’s programs
Regulatory aspects:
Advertising is controlled through laws and regulations.
Laws are formal, codified rules recognised as binding on a community.
Regulations are internal rules governing the behaviour of groups.
Regulation is difficult and controversial, so a self-regulatory approach is common in developed countries.
In Australia, advertising is regulated by a number of bodies and groups that reflect the interests of government, media, industry, public and community groups and the competition.
Advertising’s Self-Regulation:
In Australia advertising is governed by a system of self-regulation.
Self-regulation is also known as co-regulation or quasi-regulation.
Key agencies involved include:
- peak industry associations
- government agencies
- members of the public.
Self-Discipline
- Most advertisers and agencies have in-house review procedures
- Every element of a proposed ad should be evaluated by an in-house committee or lawyers
Public and Media Review
- Consumer groups such as the Australian Consumers Association
- Feminist Underground Guerrilla Group
- High-profile or vociferous experts
- The media try to regulate advertising; the free-to-air networks have a Commercial Television Industry Code of Practice
Benefits of self-regulation:
From advertising industry perspective:
- A more flexible approach
- Responsive to both industry needs and public opinion
- Limits government interference
From government perspective:
- Costs of administration and enforcement are borne by the industry rather than government
Industry self-regulation in Australia:

Advertising’s Legal Environment:
Australia Competition and Consumer Commission (ACCC).
Consumer and Competition Act 2010 (formerly the Trade Practices Act 1974).
- Penalties for misleading or deceptive advertising include injunctions, damages, corrective advertising, advertisement recall.
- In questions of liability, agencies and advertisers are liable for deceptive advertising.


