Deck 24: Economic, Social, and Legal Effects of Advertising

Question 1

What is the down side of comparison advertising?

Answer 1

Comparison advertising is said to be one of the most controversial tactics in advertisement. Three problems associated with comparison advertising are running risks of mentioning brand names, damaging of own reputation, and increasing of chances for lawsuits against claims and ridicule. Comparison advertising also sparks counterattacks that can often leave both sides hurting in the public eye.

Question 2

Discuss the role of the media clearance process and advertising self-regulation.

Answer 2

Advertising clearance process is the steps taken mostly by ad agencies and clients to give clearance of publication and broadcasts of advertisements. When one advertiser attacks another it can lead to lower sales but also ruin the trust of viewers. Self-regulation advertising initiatives are in place to ensure truthful advertising. This helps boost public perception and distant government regulation from stricter control.

Question 3

Describe advertising's overall self-regulation structure at the national level.

Answer 3

Advertisings self-regulation structure is known as NARC. This is setup to provide fair and objective inspection of advertising. Within the NARC are several subgroups such as the National Advertising Division, National Advertising Review Board, Children's Advertising review Unit, and Electronic Retailing Self-Regulation Program. Each group looks into complaints of inaccurate claims and testing, pricing, and behaviors.

Question 4

Compare and contrast the social and economic issues involved in the practice of advertising.

Question 5

Discuss two arguments for and against advertising.

Question 6

Discuss the difference between inadvertent and intended social roles of advertising.

Question 7

What is the role of the Advertising Council in encouraging social advertising?

Question 8

Why is substantiation considered the foundation of FTC enforcement?

Question 9

What is the importance of cease-and-desist orders in FTC enforcement?

Question 10

Briefly discuss the Central Hudson Four-Part Test.

Question 11

What role does advertising puffery play in enforcing advertising regulations?