PAPER-3 ADVERTISING ETHICS & LAWS - Directorate of Distance

364 Pages·2010·0.72 MB·English

PAPER-3
ADVERTISING ETHICS & LAWS

LESSON 1- Advertising ethics, social responsibility and self regulation.

LESSON 2- Regulations, ethics, consumer organization, voluntary control

LESSON 3- Advertising agencies, Advertising Standards Council of India & case studies

LESSON 4- Advertising code of publishing advertisements in print and electronic media

LESSON 5-Product code, alcohol, ammunitions and drugs

LESSON 6- Advertisement laws, F.T.C., ethics, regulations, restrictions and constitution

LESSON 7- Laws relating to advertising and article 19(1) & 2 of constitution, sections
relating to advertising in IPO Code 1868 and Indian Contract Act 1872

LESSON 8- Drugs and Magic Remedies Act 1984 and Drugs and Cosmetics Act 1940.

LESSON 9- The Punjab Act 1914

LESSON 10- MRTP Act, Indian Food Act & Non Banking Financial Companies and
Miscellaneous Non Banking Companies (Advertisements,) 1977

LESSON 11- Young Persons Harmful Publication Act 1956, Censorship and Advertising

LESSON 12- Copy right Act 1957

LESSON 13- Patents & Trademarks Act.

LESSON 14- Defamation & Emblems and Names Act.1980

LESSON 15- Prize Competition Act, Rejections of advertisements on specified and
unspecified groups
ADVERTISING ETHICS & LAWS

Course Code: Writer: Mrs. Vaishali Kathuria Billa
Lesson: 01 Vetter: Dr. Bandana Pandey

Advertising Ethics, Social Responsibility & Self Regulation

STRUCTURE
1.1 Objectives
1.2 Introduction
1.3 Ethics in advertising
1.4 Social Criticisms & Responsibility of Advertising
1.5 Summary
1.6 Key words
1.7 Self Assessment Exercise
1.8 Suggested Readings

1.1 Objectives
The main objective of this lesson is to understand the ethics in
Advertising. It also deals with social criticisms and responsibility of
Advertising and Self Regulation.

1.2 Introduction
With the fast expansion of Integrated Marketing Communication now – a
days advertising has emerged as a most demanding & challenging business
industry. Advertising plays an important role by creating primary demand
for the product or service and its usage rate thus increase in customers. It
not only stimulates the product distribution but also builds brand preferences
and loyalty. It also reduces the time between the purchases & persuades the
consumers to try various new products in the market. Advertising is a
persuasive promotional tool especially for companies whose products &
services are targeted at mass consumer markets.
From mission to profession to industry, the world of advertising has
come a long way. Some people describe it as a parasitical, untrue,
misleading and obscene Advertising Industry have been facing a lot of
criticism in the recent times as the advertising practices have not always
been ethical. Advertisements should be socially, culturally and morally
ethical Advertisements appearing on television and radio have to be
approved by Doordarshan and AIR authorities. Similarly, advertisements in
newspapers and magazines, and on outdoor sites are also regulated by
guidelines. In today’s competitive market, it is free for all, thus advertisers
are sometimes following the unethical practices to fight the competition. For
many years, the advertising industry has practiced, promoted voluntary self-
regulation. Most advertisers and media recognize the importance of
maintaining consumer trust and confidence. The circle of self-regulation in
advertising is widening day by day. Even the code of ethics drawn up by the
Advertising Standards Council of India (ASCI) has not had much impact.
They do not provide solutions to every ethical dilemma.
1.3 Ethics in advertising
Ethics means “Good Conduct” or “Conduct which is right in view of
the society and the time period”. By common consent, various modes of
behaviour and conduct are viewed as “good” or “bad”.
In other word, we can say that Ethics are moral principles and values
that govern the actions and decisions of an individual group. Ethics is a
choice between good and bad, between right and wrong. It is governed by a
set of principles of morality at a given time and at a given place and in a
given society. Ethics is related to group behaviour in ultimate analysis, thus
setting norms for an individual to follow in consistence with the group
norms.
A particular action may be within the law and still not be ethical;
Target Marketing is a good example for this. There is no law to restrict
tobacco companies from promoting their brands to Africans & American,
though it is in India but for Doordarshan only. Similarly the alcoholic –
beverage companies promote their brands & target not only college students
but underage drinkers as well. These advertisements have increased alcohol
related problems. Advertisements exposing pornography is another serious
issue in advertising industry today. Advertisements promoting
permissiveness & objectifying women are heavily criticized in the society.
Therefore, even advertising has ethical value. The mixing of Art and
facts in advertising communication are subservient to ethical principles. In
today’s competitive and buyer’s market, an advertisement have to be truthful
and ethical. If an advertisement is misleading, the credibility of the
organization is lost. To view the truth in advertisement, it has to be seen
from to consumer’s point of view rather than from legal point. The
advertising industry has been frequently criticized for putting out misleading
or exaggerated claims in respect of product, goods and services advertised. It
is also perceived as guilty of glorifying certain habits or tendencies regarded
as undesirable and encouraging consume rest culture.
However, it is very difficult to demarcate a clear line of difference
between what is true and what is untrue. But the advertisement as such is
judged by its impact, and by its acceptance by the consumers. The product
must fulfill its advertised claims. Advertisements should be decent and not
be obscene. It must be truthful. Gambling is also unethical. Sometimes,
celebrities endorsing the product and spreading falsehood is also criticized.
Advertising is a social process, thus it must follow the time-tested norms of
social behaviour and should not affront our moral sense.
In short ethics are rules of conduct or principles of morality that point
us towards the right or best way to act in a situation. Ethics vary from person
to person, society-to-society point of view. Remember that the various
people have different backgrounds, values and interests. You may see
nothing wrong with the advertisements for cigarettes or beer or sexually
suggestive ads, but other students, many oppose these actions on moral and
ethical grounds. You will have to draw your own conclusions as to what is
right and what is wrong!
1.4 Social criticism and responsibility of advertising
Advertising is the most visible activity of business. Advertising is the
most popular mass communication channel that has made mass selling
possible. Advertising made mass selling possible. Advertising is Omni
present. Advertising creates brand for the products or services advertised. It
allies, invites and involves consumers along with itself. To creates images
for the products advertising professionals uses variety of things like drama,
music, action, romance, emotion, sex, animated & functions characters and
so on. It not only invites consumer’s to try their products or services but also
invite public criticism. Much of the controversy stems from the ways many
companies use advertising as a selling tool and from its impact on society’s
tastes, value and lifestyles. Mike Huges, president and creative director of
the Martin Agency, said that, “Ads help establish what is cool in society;
their message contribute to the public dialogue. Gapads show Black, White
& Hispanic kids dancing together. Hilfiger ads showed it’s cool for people to
get along. “He argues that advertising professional law a social & ethical
responsibility.
Advertising contributes to have both negative & positive influence on
society. It is criticized for encouraging materialism, manipulating consumer
to buy things they do not need; stereotyping, fraudulent & so on. Let’s
discuss the various criticisms concerning the influence of advertising on
society.
1. PUFFERY/FRAUDULATION
Very often we hear that advertisement exaggerates about the product
qualities. Now a days ‘puffery’ i.e. “metaphor of idea” forms to be main
element in advertising. On the one hand critics accuse it, while on the other
defenders i.e. advertisers and advertising professionals opined it as a helping
agent to differentiate their brands from the competitors. Puffery is
considered to be an ‘opinion’ and not a ‘factual information’. Advertisers
claim that the consumers are intelligent enough to distinguish between truth
and exaggeration. Moreover they are not blindly going to believe everything
as such presented in an advertisement. E.g. In the advertisement of ‘Force
10’ shoes the copy is “I am walking on air”. This metaphor that tells the
lightness of the shoes, is unbelievable that one can “walk an air”. But the
studies reveals that often many people start believing them & buy those
products that have exaggerated claims in their advertisements. With the use
of special effects exaggerating the “quality” and using various “appeals”
advertisers dramatized their products to such an extent that reality takes a
back seat. E.g. “Hajmola Anardana” is not going to increase your retention
power or drinking “Mirinda” you will not forget anything or ‘VIP Franchie”
would not get a girl friend for you. Like wise, the advertisements of ‘Wheel”
& “Vim” bars show lemons on their package & advertisement even and the
products advertisers claim that it contain lemon while it is found that they
only have Lemon flavor in them. These kinds of deception cases are more in
India as well as in the world.
Puffery, though legal, but is not harmful to an extent. But false claim
and dishonesty are unethical practices and regular deception, leads to losing
costumers trust & confidence.
2. UNTRUTHFUL OR DECEPTIVE
A number of studies have shown a general mistrust of advertising
among consumers. Deceptiveness is defined as not only as false and
misleading statements but also as false impressions conveyed, whether
intentional or not. False and subjective claims about the products, is
sometimes believed but are untruthful and misleading. The problems of
untruthful or fraudulent advertising exists more at the local level and in
specific areas such as mail order, telemarketing and other forms of direct
marketing. Advertisement should be informative and should be use puffery
or embellished messages. The following acts are considered unfair or
deceptive practices :
a) False promises
b) Incomplete Descriptive
c) Misleading Comparisons
d) Bait and Switch Offers
e) Visual Distortions
f) False Testimonials
g) False Comparisons
h) Partial Disclosures
i) Small – Print Qualifications
j) Laboratory Application
3. OFFENSIVE OR IN BAD TASTE
Another one of the major complaints against advertisements is
offensive, tasteless, irritating, boring, obnoxious & so on. Taste is subjective
i.e. what is good taste to one may be bad for some one else. Tastes changes
with time even as what is offensive today may not be tomorrow. Consumers
can be offended by advertising in a number of ways. E.g. the advertisements
for products like contraceptives or personal hygiene are not acceptable to
some consumers as they often use nudity in their advertisements. Condoms
Ads are not acceptable by some of the people. The advertisements of
women’s undergarments and hemorrhoid products are found to be irritating
commercials. The type of appeal or the manner of presentation often irritates
consumer. E.g. Fear Appeal in Deodorants, Mouthwash & Anti-dandruff
shampoo ads are criticized to create anxiety & fear to be rejected in the
society; Sexual Appeal - Female as sex objects in masculine products like
shaving creams, undergarments etc.
4. CREATES MATERIALISTIC DEMAND
Advertising provides a variety of alternatives to choose from people
have needs. Advertising creates derives and fantasies for the consumers.
Some people crave for material possessions and others for cultural and
spiritual enhancement. Here Advertisers at the both end of the spectrum.