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Lecture 26

ADV 305 Lecture 26: ADV 305 – Advertising Ethics – 3.4

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University of Texas at Austin
ADV 305
Angelica Morris

ADV 305 – Advertising Ethics – 3.4 Federal Trade Commission (FTC) • Government agency that presides over marketing communications materials • The 1938 the Wheeler-Lea Amendment gave the commission power to: o Investigate and stop unfair and deceptive advertising practices o Levy fines Unfair and Deceptive Marketing Practices • An advertisement or marketing communication is deceptive or misleading if: o A substantial number of people or a typical person is left with a false impression or misrepresentation o The misrepresentation induces people or the typical person to make a purchase • ______ is not a factor in the decision Deception vs Puffery • Puffery o An exaggerated statement o Not intended to be a factual statement • Puffery statements include o Best, greatest, and finest • A claim is a factual statement that must be proven/true o Better – once considered puffery o word has recently come investigations because it implies a comparison and that one brand performs better than another o Now you must prove that it does perform better Substantiation of Claims • Substantiation: claim or promise must be proven with data, facts, or reliable evidence • Claims must reflect the typical experience a consumer would expect • If an endorser or expert is used: o The statements of an endorser must be truthful o Must represent endorser’s personal experience or opinion o Expert endorsement must be based on legitimate tests • Four principles are typically used in substantiation 1. Consumers read ads broadly, and don’t pay attention to the fine print 2. Evidence must be for actual product, not a similar product 3. Evidence should come from or be accepted by experts 4. FTC and courts will consider totality of evidence ▪ If a company has one study that shows it is superior in some way, but four other studies show it is not, the FTC would accept the other studies as greater evidence Filing complaints with the FTC • Com
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