PAPER-3 ADVERTISING ETHICS & LAWS LESSON 1- Advertising ethics, social responsibility and self regulation. LESSON 2- Regulations, ethics, consumer organization, voluntary control LESSON 3- Advertising agencies, Advertising Standards Council of India & case studies LESSON 4- Advertising code of publishing advertisements in print and electronic media LESSON 5-Product code, alcohol, ammunitions and drugs LESSON 6- Advertisement laws, F.T.C., ethics, regulations, restrictions and constitution LESSON 7- Laws relating to advertising and article 19(1) & 2 of constitution, sections relating to advertising in IPO Code 1868 and Indian Contract Act 1872 LESSON 8- Drugs and Magic Remedies Act 1984 and Drugs and Cosmetics Act 1940. LESSON 9- The Punjab Act 1914 LESSON 10- MRTP Act, Indian Food Act & Non Banking Financial Companies and Miscellaneous Non Banking Companies (Advertisements,) 1977 LESSON 11- Young Persons Harmful Publication Act 1956, Censorship and Advertising LESSON 12- Copy right Act 1957 LESSON 13- Patents & Trademarks Act. LESSON 14- Defamation & Emblems and Names Act.1980 LESSON 15- Prize Competition Act, Rejections of advertisements on specified and unspecified groups ADVERTISING ETHICS & LAWS Course Code: Writer: Mrs. Vaishali Kathuria Billa Lesson: 01 Vetter: Dr. Bandana Pandey Advertising Ethics, Social Responsibility & Self Regulation STRUCTURE 1.1 Objectives 1.2 Introduction 1.3 Ethics in advertising 1.4 Social Criticisms & Responsibility of Advertising 1.5 Summary 1.6 Key words 1.7 Self Assessment Exercise 1.8 Suggested Readings 1.1 Objectives The main objective of this lesson is to understand the ethics in Advertising. It also deals with social criticisms and responsibility of Advertising and Self Regulation. 1.2 Introduction With the fast expansion of Integrated Marketing Communication now – a days advertising has emerged as a most demanding & challenging business industry. Advertising plays an important role by creating primary demand for the product or service and its usage rate thus increase in customers. It not only stimulates the product distribution but also builds brand preferences and loyalty. It also reduces the time between the purchases & persuades the consumers to try various new products in the market. Advertising is a persuasive promotional tool especially for companies whose products & services are targeted at mass consumer markets. From mission to profession to industry, the world of advertising has come a long way. Some people describe it as a parasitical, untrue, misleading and obscene Advertising Industry have been facing a lot of criticism in the recent times as the advertising practices have not always been ethical. Advertisements should be socially, culturally and morally ethical Advertisements appearing on television and radio have to be approved by Doordarshan and AIR authorities. Similarly, advertisements in newspapers and magazines, and on outdoor sites are also regulated by guidelines. In today’s competitive market, it is free for all, thus advertisers are sometimes following the unethical practices to fight the competition. For many years, the advertising industry has practiced, promoted voluntary self- regulation. Most advertisers and media recognize the importance of maintaining consumer trust and confidence. The circle of self-regulation in advertising is widening day by day. Even the code of ethics drawn up by the Advertising Standards Council of India (ASCI) has not had much impact. They do not provide solutions to every ethical dilemma. 1.3 Ethics in advertising Ethics means “Good Conduct” or “Conduct which is right in view of the society and the time period”. By common consent, various modes of behaviour and conduct are viewed as “good” or “bad”. In other word, we can say that Ethics are moral principles and values that govern the actions and decisions of an individual group. Ethics is a choice between good and bad, between right and wrong. It is governed by a set of principles of morality at a given time and at a given place and in a given society. Ethics is related to group behaviour in ultimate analysis, thus setting norms for an individual to follow in consistence with the group norms. A particular action may be within the law and still not be ethical; Target Marketing is a good example for this. There is no law to restrict tobacco companies from promoting their brands to Africans & American, though it is in India but for Doordarshan only. Similarly the alcoholic – beverage companies promote their brands & target not only college students but underage drinkers as well. These advertisements have increased alcohol related problems. Advertisements exposing pornography is another serious issue in advertising industry today. Advertisements promoting permissiveness & objectifying women are heavily criticized in the society. Therefore, even advertising has ethical value. The mixing of Art and facts in advertising communication are subservient to ethical principles. In today’s competitive and buyer’s market, an advertisement have to be truthful and ethical. If an advertisement is misleading, the credibility of the organization is lost. To view the truth in advertisement, it has to be seen from to consumer’s point of view rather than from legal point. The advertising industry has been frequently criticized for putting out misleading or exaggerated claims in respect of product, goods and services advertised. It is also perceived as guilty of glorifying certain habits or tendencies regarded as undesirable and encouraging consume rest culture. However, it is very difficult to demarcate a clear line of difference between what is true and what is untrue. But the advertisement as such is judged by its impact, and by its acceptance by the consumers. The product must fulfill its advertised claims. Advertisements should be decent and not be obscene. It must be truthful. Gambling is also unethical. Sometimes, celebrities endorsing the product and spreading falsehood is also criticized. Advertising is a social process, thus it must follow the time-tested norms of social behaviour and should not affront our moral sense. In short ethics are rules of conduct or principles of morality that point us towards the right or best way to act in a situation. Ethics vary from person to person, society-to-society point of view. Remember that the various people have different backgrounds, values and interests. You may see nothing wrong with the advertisements for cigarettes or beer or sexually suggestive ads, but other students, many oppose these actions on moral and ethical grounds. You will have to draw your own conclusions as to what is right and what is wrong! 1.4 Social criticism and responsibility of advertising Advertising is the most visible activity of business. Advertising is the most popular mass communication channel that has made mass selling possible. Advertising made mass selling possible. Advertising is Omni present. Advertising creates brand for the products or services advertised. It allies, invites and involves consumers along with itself. To creates images for the products advertising professionals uses variety of things like drama, music, action, romance, emotion, sex, animated & functions characters and so on. It not only invites consumer’s to try their products or services but also invite public criticism. Much of the controversy stems from the ways many companies use advertising as a selling tool and from its impact on society’s tastes, value and lifestyles. Mike Huges, president and creative director of the Martin Agency, said that, “Ads help establish what is cool in society; their message contribute to the public dialogue. Gapads show Black, White & Hispanic kids dancing together. Hilfiger ads showed it’s cool for people to get along. “He argues that advertising professional law a social & ethical responsibility. Advertising contributes to have both negative & positive influence on society. It is criticized for encouraging materialism, manipulating consumer to buy things they do not need; stereotyping, fraudulent & so on. Let’s discuss the various criticisms concerning the influence of advertising on society. 1. PUFFERY/FRAUDULATION Very often we hear that advertisement exaggerates about the product qualities. Now a days ‘puffery’ i.e. “metaphor of idea” forms to be main element in advertising. On the one hand critics accuse it, while on the other defenders i.e. advertisers and advertising professionals opined it as a helping agent to differentiate their brands from the competitors. Puffery is considered to be an ‘opinion’ and not a ‘factual information’. Advertisers claim that the consumers are intelligent enough to distinguish between truth and exaggeration. Moreover they are not blindly going to believe everything as such presented in an advertisement. E.g. In the advertisement of ‘Force 10’ shoes the copy is “I am walking on air”. This metaphor that tells the lightness of the shoes, is unbelievable that one can “walk an air”. But the studies reveals that often many people start believing them & buy those products that have exaggerated claims in their advertisements. With the use of special effects exaggerating the “quality” and using various “appeals” advertisers dramatized their products to such an extent that reality takes a back seat. E.g. “Hajmola Anardana” is not going to increase your retention power or drinking “Mirinda” you will not forget anything or ‘VIP Franchie” would not get a girl friend for you. Like wise, the advertisements of ‘Wheel” & “Vim” bars show lemons