ADVERTISING:
Legal, Ethical and
Economic Aspects
LAWS AND ETHICS
Two forms of oversight are:
ETHICAL
What we SHOULD do
LEGAL
What the law allows
Ethics are usually the higher
standard
Violations of ethical principles results in
laws
Ethical Perspectives
DEONTOLOGY - Gk. deon - obligation
•Focus is on the means
•Kant’s categorical imperative
“Do unto others”
equity, justice, fairness
Catholicism and Judaism
Concern about the least able
Ethical Perspectives
TELEOLOGY -- Gk. telos - end
•Focus is on the ends
•Utilitarianism
The greatest good for the greatest number
Cost - Benefit analysis
The “Protestant Ethic”
“Caveat emptor”
Ethical Perspectives
• Let’s use two distinct names for
“ethical”:
– MORAL
• the means are good
OR
– JUSTIFIABLE
• the ends justify the means
Avenues for Oversight
•GOVERNMENT REGULATION:
•[pass and enforce laws]
•SELF-REGULATON:
•Independent bodies [set standards]
•Media companies [to accept ads]
•OTHER:
•Buyer Recourse [“caveat emptor”]
Government Regulation
Federal laws
Canadian Radio-Television Comm. (CRTC)
Advertising limits, Infomercials, 900 numbers
Alcohol, Tobacco and Drugs
Provincial laws
Alcohol Regulations
Credit and Loan Disclosures
Unfair Trade Practices Act
Self-Regulation:
CANADIAN CODE OF
ADVERTISING STANDARDS
• Accuracy and clarity
• “Disguised advertising”
• Deceptive price claims
• Bait and switch
• Guarantees and warranties
• Honest testimonials
• Imitation
• Taste and decency
Advertising Standards Canada
2011 Complaints
146 Upheld
177 To Council
1210 Code issues
1809 Complaints
(1153 ads)
Leo Burnett
ECONOMIC EFECTS OF ADVERTISING
“To me it means that if we believe to any
degree whatsoever in the economic
system under which we live,
in a high standard of living and in high
employment, advertising is the most
efficient known way of moving goods in
practically every product class.”
Leo Burnett
“Advertising, of course, makes
possible our unparalleled variety
of magazines, newspapers,
business publications, and radio
and television stations.”
Leo Burnett
“It must be said that without
advertising we would have a far
different nation, and one that would
be much the poorer-not merely in
material commodities, but in the life
of the spirit.”
Excerpts from a speech given April 20,1967
at the American Association of Advertising Agencies’ 50th anniversary
Quote of the day
If you tell lies about a product you will
be found out – either by the
government, which will prosecute
you, or by the consumer, who will
punish you by not buying your
product a second time.
• David Ogilvy
(Ogilvy & Mather)