Lecture 5CONTROVERSIAL PRODUCTS AND REGULATIONSFreedom of speech actAdvertising commercial speech only gets some protectionsBefore 1960’s- ad words protectedAdvertising regulationFederal communication commission: regulates obscenity and fraudFood and drug administration: regulates ads for food, drugs, cosmetics, medical products, and labeling/packagingFederal trade commission: regulates deceptive adsExample- teach your baby to read, and listening to a tape will cause your baby will know how to read, but that’s not trueAgency vs. BrandsBrands (not agency) held liable for all brand messagingAgency takes information from brand, and if that information is wrong then it’s the brands fault, not the agencyAgency is only responsible if they knowingly use false messagesAgencies rarely get in trouble for knowingly publishing false informationCode of practices for TV broadcasters1951-1983prohibitedprofanitynegative portrayals of family lifeirreverence for God and religionillicit sexdrunkennessaddictioncrueltydetailed techniques of crimenegative portrayals of law enforcement officialsEach individual network now has its own code of ethics/practices that incorporates some of these values into itAd regulation mostly done through self regulationWritten codes of conduct, policies and procedures, voluntary that members of an organization elect to abide byIn the end they want to be able to advertise their products in an ethical way in order to gain trust from the viewers and buyersAdvertising self regulatory council (ASRC)National advertising divisionNational advertising review boardChildren’s advertising review unitElectronic retailing self-regulation programOnline internet-based advertising accountability programThey 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 regulationRelies on citizens to submit complaints. Few know these organizations exist.Not a lot of knowledgePeople can actually send an email and then the ad will be investigatedScope: Federal Trade commission is limited in what it can regulate and in staff to do regulationsThe staff is shrinkingA lot of policies go unforced due to lack of personnelSelf regulations= very few sanctionsMany times just a slap on the wristLittle/no corrective advertisinga false viewpoint already does the damage, and the origination doesn’t have to go back and correct that information.self regulatory agencies funding?A lot of conflict of interest, because a lot of the funding is from the very agencies that fund their researchControversial products and marketing of controversial productsRite of passage productsLimitations on ageEx. Cigarettes, alcohol, certain medications, pornSexually oriented productsEx. Condoms, birth control, sex toys, pornExcessive promisesEx. Lottery, skin creams dramaCompany philosophyMore consumer information about background info of consumer companiesEx. Sweatshops and Nike in the 90’s, Apple and terrible factory conditionsCase studiesCigarettesWWI, WWII- marketing for cigarettes roseAdvocated a health benefit“more doctors smoke camels than any other cigarette”“as your dentist I would recommend it?”1964: surgeon General’s reportsmoking was a public health issue and smoking kills, costs 157 billion in healthcare annuallyCigarette adsCurrently 13.4 billion/year on cigarette advertising in the USCigarette companies: we encourage smokers to switch brands, not start smoking75% of cigarette companies are owned by Philip Morris and anotherPrimary Advertising Strategy: Market SegmentationWomenChildrenMinoritiesCigarette ads: Women1920’s First ads targeting womenprint ads, staged events and protests, weight loss programsthey would pay women to attend certain events or go into the smoking car on trains and smokeAds aimed at women tend to emphasizeWeight- 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: MinoritiesPlace-based advertisements- found that advertisements placed in more urban areas were drastically higherCommunity sponsorships-hip hop events, basketball, etc.Product segmentation: menthol cigarettes aimed at African AmericansSelf-reinforcing cycle of use/targeted adsThe statistics over a couple thousand people interviewed by Phillip-Morris found that 2% of white people liked menthol, and 5% African AmericanKool would features Myles Davis, and the cool jazz musiciansCigarette ads: youth90% of adult smokers started as teenagersbrand recognition from an early age1998:No direct/indirect marketing to childrenBUT: MA Playground ruling, Salem exampleBrand stretchingUsing the brand name on other types of products that kids are likely to purchase and use (duffel bags, t shirts, hats, Frisbees)Regulation attempts1967: fairness doctrine applies to cigarettesstations must give free ad space to anti-smoking ads1970’s: Cigarette Ads banned on TV, radio1997: Bans outdoor and billboard ads and ads aimed at children (esp cartoon ads) in 46 statesstate funding for prevention and control2010: cigarette brands cannot sponsor sports, music, or cultural eventsAlcohol regulations8-13 year olds know more types of alcoholic beverages than names of US presidents.JAMS 214 1st EditionLecture 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 adso 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 messagingo Agency takes information from brand, and if that information is wrong then it’s