ADV

### Critiqued Ads, asked questions ###


Regulation - 2 Main Purposes
Regulation - 3 Main Areas

- Purpose for advertising regulation
• To protect compettion
• To protect consumers from economic or phycical harm

- Regulatoins are concerned with
• Deceptive or unfair content
• How advetising is delivered
• Protection of susceptible groups (kids, etc)


Regulatory Power from low to high
1. natural market forces (if no good, consumers won't buy it again)
2. Organized Market Forces (boycotts, bad publicity, media pressure)
3. Media/Self-Regulatory Forces (Media Forces, NAB, Industry Groups)
4. Governmental Regulation (States, FTC, Legislation, Supreme Court)
5. Private Policy (Companies regulating their own behavior)

5 FTC Concerns:
1) Deception - must lead to "material injury"
2) Comparisons - must substantiate with statistically significant data.
3) Endorsements - must be qualified, must use product
4) Demonstrations - Must be accurately depicted
5) Bait & Switch - product must be available

4 Possilbe Remedies for Deceptive Ads
1) Consent Decree - FTC asks advertiser to stop
2) Cease & Desist - FTC gets court order to force advertiser to stop
3) Corrective Ads - FTC mandates new ads to correct false preceptions
4) Consumer REdresses - FTC mandates reimbursement

6 Government Regulatory Groups
FCA - Packaging and labeling
FCC - Broadcast advertising
Postal Service - Magazines, direct mail
ATF - Liquor labeling, advertising
Patent Office - Trademarks
Library of Congress - Copyrights

2 Industry Watchdogs
NAD (National Advertising Division)
Part of Better Business Bureau

National Advertising Review Board
Represents advertising and agencies, a division of the NAD
Compliance to these is strictly voluntary

## Questions on Regulation ### skipped

Got out of class early today!

Front Row Nerd Crew has been created. We plan to make some study sessions for this two Exam class.