JAMS 214 1st Edition Lecture 5 CONTROVERSIAL PRODUCTS AND REGULATIONS Freedom of speech act Advertising commercial speech only gets some protections Before 1960 s ad words protected Advertising regulation Federal communication commission regulates obscenity and fraud Food and drug administration regulates ads for food drugs cosmetics medical products and labeling packaging Federal trade commission regulates deceptive ads o Example teach your baby to read and listening to a tape will cause your baby will know how to read but that s not true Agency vs Brands Brands not agency held liable for all brand messaging o Agency takes information from brand and if that information is wrong then it s the brands fault not the agency o Agency is only responsible if they knowingly use false messages Agencies rarely get in trouble for knowingly publishing false information Code of practices for TV broadcasters 1951 1983 prohibited o profanity o negative portrayals of family life o irreverence for God and religion o illicit sex o drunkenness 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 addiction o cruelty o detailed techniques of crime o negative portrayals of law enforcement officials Each individual network now has its own code of ethics practices that incorporates some of these values into it Ad regulation mostly done through self regulation Written codes of conduct policies and procedures voluntary that members of an organization elect to abide by In the end they want to be able to advertise their products in an ethical way in order to gain trust from the viewers and buyers Advertising self regulatory council ASRC National advertising division National advertising review board Children s advertising review unit Electronic retailing self regulation program Online internet based advertising accountability program They issue judgments fine a company for misleading or profanity etc Self regulation is good consumers The self regulatory system monitors the marketplace holds advertisers responsible for their claims and practices and tracks emerging issues and trends Self regulation is good for advertisers Rigorous review server the consumer trust the self regulatory system offers an expert cost efficient meaningful Issues with self regulation Relies on citizens to submit complaints Few know these organizations exist o Not a lot of knowledge o People can actually send an email and then the ad will be investigated Scope Federal Trade commission is limited in what it can regulate and in staff to do regulations o The staff is shrinking o A lot of policies go unforced due to lack of personnel Self regulations very few sanctions o Many times just a slap on the wrist Little no corrective advertising o a false viewpoint already does the damage and the origination doesn t have to go back and correct that information self regulatory agencies funding o A lot of conflict of interest because a lot of the funding is from the very agencies that fund their research Controversial products and marketing of controversial products Rite of passage products o Limitations on age o Ex Cigarettes alcohol certain medications porn Sexually oriented products o Ex Condoms birth control sex toys porn Excessive promises o Ex Lottery skin creams drama Company philosophy o More consumer information about background info of consumer companies Ex Sweatshops and Nike in the 90 s Apple and terrible factory conditions Case studies Cigarettes o WWI WWII marketing for cigarettes rose o Advocated a health benefit more doctors smoke camels than any other cigarette as your dentist I would recommend it o 1964 surgeon General s report smoking was a public health issue and smoking kills costs 157 billion in healthcare annually o Cigarette ads Currently 13 4 billion year on cigarette advertising in the US Cigarette companies we encourage smokers to switch brands not start smoking 75 of cigarette companies are owned by Philip Morris and another Primary Advertising Strategy Market Segmentation Women Children Minorities o Cigarette ads Women 1920 s First ads targeting women print ads staged events and protests weight loss programs they would pay women to attend certain events or go into the smoking car on trains and smoke Ads aimed at women tend to emphasize Weight don t reach for Doritos go smoke to keep a slender figure no one can deny reach for a Lucky instead of a sweet Modernization you re a modern day independent woman you ve come a long way baby virgina slims features a black young woman Youth e young be free smoke Cigarette ads Minorities Place based advertisements found that advertisements placed in more urban areas were drastically higher Community sponsorships hip hop events basketball etc Product segmentation menthol cigarettes aimed at African Americans Self reinforcing cycle of use targeted ads The statistics over a couple thousand people interviewed by Phillip Morris found that 2 of white people liked menthol and 5 African American Kool would features Myles Davis and the cool jazz musicians Cigarette ads youth 90 of adult smokers started as teenagers brand recognition from an early age 1998 No direct indirect marketing to children BUT MA Playground ruling Salem example Brand stretching Using the brand name on other types of products that kids are likely to purchase and use duffel bags t shirts hats Frisbees Regulation attempts 1967 fairness doctrine applies to cigarettes stations must give free ad space to anti smoking ads 1970 s Cigarette Ads banned on TV radio 1997 Bans outdoor and billboard ads and ads aimed at children esp cartoon ads in 46 states state funding for prevention and control 2010 cigarette brands cannot sponsor sports music or cultural events Alcohol regulations o 8 13 year olds know more types of alcoholic beverages than names of US presidents