MCS 4300 Lecture Notes - Lecture 5: Puffy Amiyumi, Consumer Protection, Pizza Hut

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 4300
• Professor: Tim Dewhirst

Document Summary

Why regulate: purpose of advertising regulation, to protect consumers from economic or physical harm, to protect competition, regulations are concerned with, deceptive and unfair content, how advertising is delivered, protection of vulnerable groups (i. e. children) Regulation benefits & costs: advantages of marketing regulation, improved consumer choice, can make informed decisions, improved product quality, ex. Nutrition facts panel leads companies to develop healthier foods: reduction in prices, ex. When used car buyers are aware of car defects they can buy at lower prices: disadvantages of marketing regulation, cost of compliance, ex. million spent on cigarette warnings: enforcement costs, paid by government and taxpayers, side effects, ex. Costs may be passed on the consumer through higher prices: government perceived as (cid:862)i(cid:374)terferi(cid:374)g(cid:863) (cid:449)ith (cid:271)usi(cid:374)ess. Government regulation: united states: ftc policy statement on deception (1983, alcohol, appliances, automobiles, clothing textiles, finance, Franchises, business opportunities and investments, etc: www. ftc. gov/public-statements/1983/10/ftc-policy-statement- deception.