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Advertising Regulation - PowerPoint PPT Presentation


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Advertising Regulation. Who regulates?. The FCC The FTC The FDA The State Attorney General Locally?. What is regulated?. Deceptive advertising False and Misleading Claims Unfair advertising Unfair to competitors Affirmative disclosure. How is advertising regulated?.

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Presentation Transcript

Who regulates l.jpg
Who regulates?

  • The FCC

  • The FTC

  • The FDA

  • The State Attorney General

  • Locally?


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What is regulated?

  • Deceptive advertising

    • False and Misleading Claims

  • Unfair advertising

    • Unfair to competitors

  • Affirmative disclosure


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How is advertising regulated?

  • Ex post facto (after the fact)

  • Reactionary

  • Responses to complaints

    • Most from competitors

    • Fewer from consumers


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Penalties

  • Violation of Federal Law - fines

  • Cease and Desist Order

  • Consent Decree

  • Corrective advertising


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Strictest review

  • Children’s advertising

  • OTC medications

  • Packaged foods



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Liquor

  • Happy hour advertising is discouraged

  • Liquor pricing is discouraged

  • No prohibition on advertising liquor products


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Of special concern

  • Political advertising

    • Section 315 of the CA – “equal time”

  • Professional advertising

    • Lawyers, doctors, accountants, etc.


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Bait and switch

  • Advertised prices or products that are not available.

  • Designed to lure consumers into the store with the intent to sell them something more expensive than they intended to buy.


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Puffery

  • Some exaggeration is expected in advertising claims

  • Hyperbole is common in ad copy


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