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CAD114 Chapter 3 Advertising Regulation

by: Sichu Wang

CAD114 Chapter 3 Advertising Regulation MTH162

Marketplace > University of Miami > MTH162 > CAD114 Chapter 3 Advertising Regulation
Sichu Wang
GPA 2.7

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This 7 page Class Notes was uploaded by Sichu Wang on Sunday February 22, 2015. The Class Notes belongs to MTH162 at University of Miami taught by guadalupe in Fall. Since its upload, it has received 10 views.


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Date Created: 02/22/15
CAD 114 Principles of Advertising Ad is created by Agency CompanyAdvertiser reviews it I Ad presents new claims about the product Before CompanyAdvertiser approves the ad Are the claims verifiable Did the researchers use proper procedures to collect and analyze the data and present the findings Do research results support the claims Were the right people used in the study Could any conditions have biased the results 212015 AdvertiserCompany s legal department and Agency s attorneys review ad Competition might sue v company if the ad distorts the facts or miseads If both reviews are acceptable ad is sent to the Media consumers If the company loses they might have to JV retract the claimsad and Media will review and might ask for more information or modifications pay the competitor damages CV Even after approval the ad is still subjected to scrutiny from state and federal regulatory agencies Individual consumers or competitors might file complaints SelfRegulation of Advertising Advertisers and Industry Trade Agencies Associations 1 i Voluntary self regulation by the advertising industry business and media to maintain consumer trust and confidence and limit government interference Business BBB NARC NARB Consumer Advocacy Groups MEdla 212015 II I I d n a Home l About Us eese HIEparts ller Bangles 39 SelfRegulatory Programs NARI Harmer i To ensure the credibility of and impartiality in the selfregulation Einstein the advertising review Board of Die does prooe se operates under the administrative purview of the CEliElIB Established to provide giLIIdla39rice Seilfi eamula bom and set standards oftrdth and accuracy for national advertiser39s MARC sets the policies for the Programs National Advertising Division MAD of the 6338 Children39s Advertising Review Unit CARD National Advertising Review Board HARE and the Electronic Retailing Selfregullamry Program Procedures E ERSPL I uintact 5 i tiLi may link to each program39s webstte be clicking on the links below 1 Cami rum Prian litilig 39 Allmiiit Us Contact Us Q 2055 Council of Better Business Bureau Inc All Rights Reserved quotlar monY39 mistgsom LO VE Begli S l llEEIquote 0 Filed a complaint over a competitor which claimed that it could use quotthe latest science of attraction to predict which single men and women one will have a relationship and dating chemistry 0 Claims could not be substantiated and NARC ruled that the company shoukldbcon nuethent The parent company Matchcom disagreed with the decision but discontinued the claims 212015 SelfRegulation by Media Media may reject any ad they find objectionable except for political ads Newspapers and magazines have their own restricts which often depends on the size and nature of publication The four major TV networks have the most strict ad review process Federal Regulation of Advertising Federal Communications Commission FCC Food and Drug Administration FDA Federal Trade Commission FTC Bureau of Alcohol Tobacco and Firearms U39S39 POStal senIce 212015 212015 Federal Trade Commission FTC Focuses on regulating FTC website Unfairness causes physical or economic injury Deception falsemisleading information omission Puffery exaggerated claims Acceptable because FTC understands that consumers expect inflated claims and don t beheveit Federal Trade Commission FTC Baffler weigh I thalie39slaarl 39quot r Atkinslmlm ll ia Focuses on regulating Substantiation requires advertisers to have supporting documentation for their claims and to prove the claims are truthful Should be done before an ad appears 0 Required for all claims involving safety performance efficacy quality or comparative price Ways the FTC Handles Deceptive Ads FTC Programs to Prevent Deceptive Advertising Affirmative A Advertising Disclosure Substa ntiation FTC Programs to Deal With Deceptive Advertising After It Occurs Cease and A Corrective Desist Orders Advertising Federal Communications Commission FCC Regulates radio and television broadcast communications media not advertisers Can issue and revoke licenses ban deceptive messages or those in poor taste It responds to complaints but doesn t initiate actions Works closely with FTC to eliminate false and deceptive advertising 212015 Food and Drug Administration FDA Regulatory division of the US Department of Health and Human Services Oversees package labeling ingredient listings and ads for food and drugs Determines the safety and purity of foods cosmetics cam 5m Im mi am his iiil SIM Fae rs Tniiii Fat 2 9 a s 7quot ts Sii39i mli 1 as tolls r s Twit a E Elliim mis l W397 13 ii 1cm 39 hrsmtg a it s 3 ea nm an I s 1 1 Sugar 139 39Pman l a Vitamin E El as a quotas WWW l 20 k Iron an as as s Marrm o a as 25 st 4 is B it EFaE E i i Egan 535 133 Warnn Eq lEI as 1 5 b F slam a as w quotis tifiamn ia El n E 39 w as m as mm 1 ins 715 ESEElm I151 75 as ice as 15 is 39 A39squot quotW V Ingraljicntas Whole grain oat modi ed corn starch com starch sugar salt trisocllum phosphate calcium carbonate monoglycelridles tocopherols wheat starch annatto 39 39 niacinamide calcium pantothcnate py ridoxine hydrochloride vitamin b6 f olate iron Contains wheat ingredients Nutrition Facts Pa 1 mp 39 gi Other Regulatory Bodies Bureau of Alcohol Tobacco and Firearms BATF regulates deception in advertising and establishes labeling requirements for the liquor industry US Postal Service regulates direct mail and magazine advertising including the areas of obscenity lotteries and fraud The States Attorneys General regulate advertising at the state level 212015


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