Law of Advertising and Public Relations
Law of Advertising and Public Relations JMC-40016-001
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This 3 page Class Notes was uploaded by Megan Angelo on Tuesday April 19, 2016. The Class Notes belongs to JMC-40016-001 at Kent State University taught by Timothy A. Roberts (P) in Spring 2016. Since its upload, it has received 14 views. For similar materials see LAW OF ADVERTISING AND PUBLIC RELATIONS in Culture at Kent State University.
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Date Created: 04/19/16
Federal Trade Commission 4/14/16 Lanham Act: allows businesses to sue each other for unfair practices - False advertising/unfair business practices - consumer cannot sue a business To Win: 1.)the advertiser made factually false claims about the product 2.)the ad could or did deceive a large segment of the target population 3.)the deception was an important part of the ad 4.)the product was sold across state lines 5.)the competitor (plaintiff) was likely to be harmed by the deception FTC – 1914 Ad Regulation - consumers can file complaints - most complaints resolved through a “consent order” Corrective Orders - can ban future commercials speech which includes products or services - can require a commercial speaker to publish corrective information - if cease-and-desist is ignored – seek civil law remedy - guilty of a criminal misdemeanor Liability - independent commercial speakers- agencies - original manufacturers or providers of the products FTC and Commercial Speech - Supreme Court- often upholds regulation of commercial speech as constitutional - False or deceptive speech gets more attention and regulation - FTC- jurisdiction extends to all forms of communication used for publicity and marketing purposes False Commercial Speech - False based on the perception of the commercial message by the receiver of the message - Statement of fact is made - Includes sins of omission as well - Conveyed as an objective statement of fact and is false Deceptive Commercial Speech - A representation, practice, or omission likely to mislead consumers - Content- interpreted reasonably under the circumstances - Material representation that could influence consumers decision- respect to purchase a product FTC - Expects advertisers to prove claims- burden of proof - Substantiated in advance Puffery - An exception to the rule - No one would rely on its exaggerated claims - Subjective claims do not require prior substantiation - Ex.) “Better Ingredients, Better Pizza” - Used for promotion- not deception - Subjective and cannot be quantified Endorsements Testimonials - Celebs and other non- employee spokespeople endorsement statements require prior substantiation - “Experts” must have adequately evaluated the product or service prior to endorsing Influencer Endorsements - Ethically it is imperative that brands be transparent with consumers – proper disclosure of compensation FTC Section 5 - “clear and conspicuous” disclosures of compensated relationships brands have with bloggers and publics - Blogger- 2008- required to disclose compensation - 2013- refined disclosures- required on social media including- Vine, Pinterest, Twitter - Ex.) # Ad # Sponsor Enforcement - Erratic enforcement Requirements “Clear and Conspicuous”- Disclosure 1.)Proximity of disclosure- same tweet 2.)Prominence of disclosure- clearly 3.)Multimedia- includes audio and video 4.)Presentation Order- must be seen before article or purchase Health and Beauty - Viewed with special scrutiny - Minimum of two independent clinical trials
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