Chapter 3 – The Economic, Social, and Regulatory Aspects of Advertising

Learning Objectives

Ø To have a general understanding of the Abundance Principle and what it implies about advertising’s role as an economic influence

Ø To have a general appreciation for ethical and social viewpoints about advertising practice

Ø To understand the nature of subliminal advertising and the concerns about it. Are they valid?

Ø To understand and apply the concepts of puffery, deceptive advertising, and unfair advertising

Ø To know the key players of advertising regulation at the judicial, governmental, and self-regulatory levels, and the extent of their authority

Ø To know the 4-step test used by the judicial branch to determine if advertising should be regulated

Ø A general appreciation of the criteria necessary for FTC regulation

Ø To understand the FTC’s alternative remedies to substantiated claims of unfair and deceptive advertising claims

Ø To have a general knowledge of the process for substantiating complaints made with the Better Business Bureau (BBB branches responsible for investigating claims) and BBB remedies for resolving substantiated claims