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Work Cited

Our

Stance

RCW 9.04.050

False, misleading, deceptive advertising.

It shall be unlawful for any person to publish, disseminate or display, or cause directly or indirectly, to be published, disseminated or displayed in any manner or by any means, including solicitation or dissemination by mail, telephone, electronic communication, or door-to-door contacts, any false, deceptive or misleading advertising, with knowledge of the facts which render the advertising false, deceptive or misleading, for any business, trade or commercial purpose or for the purpose of inducing, or which is likely to induce, directly or indirectly, the public to purchase, consume, lease, dispose of, utilize or sell any property or service, or to enter into any obligation or transaction relating thereto: PROVIDED, That nothing in this section shall apply to any radio or television broadcasting station which broadcasts, or to any publisher, printer or distributor of any newspaper, magazine, billboard or other advertising medium who publishes, prints or distributes, such advertising in good faith without knowledge of its false, deceptive or misleading character.

Bhasin, Karlee Weinmann and Kim. "14 False

Advertising Scandals That Cost Brands Millions." Business Insider. Business Insider, Inc, 16 Sept. 2011. Web. 02 Nov. 2015.

Examples

"Advertising Ethics." "Deceptive Advertising."

Sage Brief Guide to Marketing Ethics. Los Angeles: SAGE, 2012. N. pag. Print.

Summary

Deceptive

Advertising

We are all AGAINST

Deceptive Advertising.

We feel it is both morally and ethically wrong.

"Advertising FAQ's: A Guide for Small Business."

Advertising FAQ's: A Guide for Small Business. Federal Trade Commission, n.d. Web. 02 Nov. 2015.

"RCW 9.04.050: False, Misleading, Deceptive

Advertising." RCW 9.04.050: False, Misleading, Deceptive Advertising. Washington State Legislature, 2000. Web. 02 Nov. 2015.

  • Our stance
  • Deceptive vs. Unfair Advertising
  • Examples
  • Different Types of Deceptive Advertising
  • Regulatory Oversight
  • Laws in place
  • Consequences
  • Top Scandals

"False Advertising Examples." YourDictionary. N.p., n.d. Web. 02 Nov. 2015.

"Small Business." - Chron.com. N.p., n.d. Web. 02

Nov. 2015.

Deceptive Advertising

Top Advertising

Scandals

Activia

- False claims on nutritional benefits

- 45 million

Overview

Hyundai and Kia

- False claims on vehicle horsepower

- 75 to 125 million

New Balance

- New shoe technology claimed to have health benefits

- 5 million

Group 1

Tiffany Clark

Sophia Hill

Cody LeMay

Axel Shoop

Consequences

-Ads that contain a statement (omits info) that misleads or influences consumers with false information

-The deception must be "material" that effects consumers decision

  • Consumer responsibility
  • Civil Lawsuit Consumer sued for damages
  • Damages credibility
  • FTC investigates
  • Our stance
  • Deceptive vs. Unfair Advertising
  • Examples
  • Different Types of Deceptive Advertising
  • Regulatory Oversight
  • Laws in place
  • Consequence
  • Top Scandals
  • Summary, work cited, and questions

Penalties for False/Deceptive Ads

  • Cease and desist orders
  • Civil penalties, consumer redress
  • Corrective advertising, disclosures and informational remedies

Unfair

Advertising

-Causes or likely to cause harm or injury to the consumer which isnt avoidable

-No benefit outweighed to the consumer

Federal Laws

Regulatory

Oversight

  • The federal laws in place for deceptive advertising are known as Consumer Laws and are regulated by the FTC.

“It shall be unlawful to publish any false,

deceptive or misleading advertising, with knowledge of the facts which render the advertising false, deceptive or misleading for the purpose of inducing the public to purchase property or service”

Consumer Law:

  • Groups of laws and organizations
  • Unfair practices, fraud, or advantage

Washington Legislation

RCW 9.04.050

False, Misleading Deceptive Advertising

Different

Types

“It shall be unlawful for any person to publish, disseminate or display, or cause directly or indirectly, to be published, disseminated or displayed in any manner or by any means, including solicitation or dissemination by mail, telephone, electronic communication, or door-to-door contacts, any false, deceptive or misleading advertising, with knowledge of the facts which render the advertising false, deceptive or misleading, for any business, trade or commercial purpose or for the purpose of inducing, or which is likely to induce, directly or indirectly, the public to purchase, consume, lease, dispose of, utilize or sell any property or service, or to enter into any obligation or transaction”

  • FTC (Federal regulation)
  • NAD (industry Self-regulation)
  • Private lawsuits (competitors)

Implicit Advertising

  • The message is not clearly stated

Explicit Advertising

  • The message is a direct statement

Other Types

Federal Trade Commission

  • Federal Trade Commission (FTC)- Its mission is to prevent business practices that are anti competitive or deceptive or unfair to consumers.

Ads the FTC looks for:

  • Claims of health, safety:

ex. ABC Sunscreen reduces the risk of cancer

  • Claims that consumers would have trouble evaluating for themselves:

ex. ABC Hairspray is safe for the ozone

  • Price Deception
  • Bait and Switch
  • Quality or Origin Deceptions
  • False environmental claims

National Advertising Division

National Advertising Division (NAD)- Its mission is to review national advertising for truthfulness and accuracy and foster public confidence in the credibility of advertising.

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