Lecture Advertising and promotion: An integrated marketing communications perspective (10/e): Chapter 20 - George E. Belch, Michael A. Belch

Chapter 20 - Regulation of advertising and promotion. The main goals of this chapter are: To examine how advertising is regulated, including the role and function of various regulatory agencies; to examine self-regulation of advertising and evaluate its effectiveness; to consider how advertising is regulated by federal and state government agencies, including the Federal Trade Commission.

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ir APROMOTION An Integrated Marketing Communications Perspective Chapter 20 Regulation of Advertising and Promotion TT Towayd 2422

George E Belch Michael A Belch

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ulation and Control of Advertising content of the ad

ad to offend, exploit, mislead, and/or

: Voluntary internal regulation promoted within an industry

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elf-Regulation by Businesses

usiness Bureau (BBB): Promotes fair

nd selling practices across industries at Business Bureaus: Provide

over advertising practices at the

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dvertising Self-Regulatory Council (ASRC) own as the National Advertising Review RC) tain high standards of truth and | advertising

ountability Program - Regulates ioral advertising (OBA) across the

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent

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tional Advertising Division of the Council

{f Better Business Bureaus (NAD)

product performance, superiority, d technical claims

crutinize all types of media to find

opyright © 2014 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education

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ational Advertising Review Board (NARB)

for additional review by advertisers who uth NAD’s findings

vertising professionals and interest members

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CARU Activities ¢ General activities ¢ Review and evaluate child-directed advertising in all media °Ò Oversee online privacy issues that affect children

¢ Advise advertisers and agencies ¢ Maintain self-regulatory guidelines

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Mission of the ERSP Enhance consumer confidence in electronic retailing

Discourage advertising and marketing in the electronic retailing industry that

contains unsubstantiated claims

Demonstrate a commitment to meaningful and effective self-regulation

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Advertising Associations

Association of Advertising Agencies sues guidelines for specific types of

ing Federation (AAF)

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Self-Regulation by Media Newspapers and magazines

¢ Have requirements and restrictions depending on the size and nature of the publication

¢ Some test the products advertised and offer refunds if they are later

found to be defective

Television and radio

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Major Divisions of the FTC

Bureau of Competition

¢ Seeks to prevent business practices that restrain competition ¢ Enforces antitrust laws

Bureau of Economics

¢ Provides economic analysis and support to antitrust and consumer protection investigations

¢ Analyzes the impact of government regulation on competition and consumers

Bureau of Consumer Protection

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Puffery Bayer — ; BMW —

Hàn wonee! drug “The ultimate at WOr ‘S driving machine” wonders CN Nestle — Snapple —

“The very best “Made from the chocolate” best stuff on

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Additional Federal Regulatory Agencies Federal Communications hone and Drug Commission dministration

Additional federal regulatory agencies and departments that regulate

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The Lanham Act

bits any false description or representation

false advertising lawsuit containing a comparative

nts have been made about the advertiser’s or

e tendency to deceive a substantial nce

aterial or meaningful and can influence sions

dvertised products or services are sold in interstate

ne will incur loss of sales or of goodwill as a result of the false

tatements

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ational Association of Attorneys General (NAAG) ertising advertising

ng with nutrition and health claims

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egulation of Sales Promotion

and sweepstakes - Marketers must ensure

stake cannot be classified as lottery promotion is made

ould list its value as the price at which the

allowances

hould follow the stipulations of the Robinson-Patman Act

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Regulation of Direct Marketing self-regulation occurs through various industry groups

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Marketing on the Internet

ed profiling of consumers by web a major concern

ising Initiative (NAT)

nies that collect Internet usage elf-regulatory codes

s Online Privacy Protection Act

PA): Restricts collecting information from Idren via the Internet

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Regulation of Social Media

ing of personal information r online endorsements s and bloggers must disclose any n to company or brand posting on social media and e- tes

dentify themselves as such

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Anti-Spamming Legislation

"= CAN-SPAM Act of 2003 email rules

" Conspicuous notice of the right to opt-out

" A functioning Internet-based mechanism that a