ADPR 3100 1nd Edition Lecture 26 Outline of Previous Lecture I Cannes Lions Film Festival a Guest speaker Dr Reichart b why go to Cannes Lions c 2014 themes d Award winning campaigns Outline of Current Lecture II Legal environment laws and regulations of Adversiting III Advertising defined as commercial speech IV First amendment rights V FTC VI Deception vs puffery Current Lecture legal environment laws and regulations o determines what advertisers can and can t do o advertisers cannot do whatever they want and they have to abide by rules sources o laws supreme court o regulations elected officials laws on advertising first amendment issues o first amendment and the supreme court These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o commercial speech promotes a commercial transaction Come buy a hotdog doesn t have to be spoken it can be a sign or an ad any claim about a product can be verified falsehood verifiable o political speech Advocates a cause of a point of view going out and saying Florida sucks there are different levels of constitutional protection is a choice much more sensitive to any restrictions against it can argue a point of view but it s hard to prove it wrong its more opinion based kinds of speech and constitutional protection o advertising is commercial speech o commercial speech less protected than political speech hardier falsehood verifiable NY Times vs Sullivan court case during civil rights movement in the south NY Times Heed Their Rising Voices page paid that wasn t an ad Sullivan was mad because he wasn t mentioned in this even though he was in charge of the Montgomery police force but advocated a point of view was this protected speech under the first amendment o corporate speech building on ambiguities seen in NYT v Sullivan paid publication of points of view of corporations corporate speech same protections as political speech imbalance due to unequal means giving corporations the same rights as individuals created a new avenue for advertising that gives a lot more leeway for advertisements o not anything goes time place and manner rules o central hudson four part test 1 is the message eligible for first amendment protection 2 is the governmental interest asserted in regulating the expression substantial 3 does the proposed regulation advance the regulatory interest 4 is the proposed regulation narrow enough if yes the regulation is constitutional speech is in different categories o commercial speech is less protected and more regulated than political o corporate speech has the same protections as political it provided more leeway for advertisers to get their word out that wasn t available beforehand o speech is still an act with limits time place and manner restrictions advertising and the first amendment o commercial speech and less protected legally subject to greater regulation o corporate speech recent third legal category with constitutional protection o still a right with legal limits legal regulations on advertising o elected appointed government makes regulations local and county councils state and national legislatures federal trade commission FTC o 1800s little regulation many ads outright lies o early 1900s in 1910 no regulations against dishonest advertising o toward regulation agencies concerned with truthfulness bad apple theory dishonest agencies were giving the honest ones a bad name they sought regulation because it would enhance value of advertising and they could define regulations to advantage o pure food and drug act 1906 correct false messages but kept them on shelves not bad products o federal trade commission 1914 their job is to regulate advertising protects consumers from deceptive and or unsubstantiated ads remedies stop change ad publicize corrective ads pay fines o deception vs puffery deception is actionable lie likely to mislead a consumer acting reasonably must be material centrally about a product puffery not actionable exaggeration or overstatement that is expressed in broad vague language not misperceptions or false representation of specific characteristics ex nokia cellphone stable camera commercial not really stable a car was filming it deception ex Axe Anarchy commercial about how everyone in the city stops everything to find their love puffery ex nissan commercial landing a plane on a nissan or nissan riding up a sand mountain pushing a little car deception nissan car commercial driving on top of a train and doing stunts puffery