Review Article: 2021 Vol: 13 Issue: 4S
N Meena Rani, Xavier Institute of Management & Entrepreneurship
Citation Information: Rani, M.N. (2021). Ethical issues in advertising. Business Studies Journal 13(S4), 1-7.
Advertising, Ethical Issues, TV Advertising, FMCG Sector.
People no longer buy shoes to keep their feet warm and dry but take because of the way the shoes make them feel Masculine, feminine, rugged, different, sophisticated, young, and glamorous. Buying shoes has become emotional experience. So, our business is to sell excitement rather than shoes Francisco s. Rooney.
The above quote is much more relevant in the saga of advertising, where the propaganda dominates the basic product or its price. In the words of John.P.Foley and Pierfranco Pastore (1997), the importance of advertising is steadily increasing in the modern society. That observation made by pontifical council a quarter century ago is even truer now. Just as the media of social communication have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today’s world. Among the various media of advertising, television gained utmost popularity, thanks to exponential growth of TV production, declining costs, and broadcasting policy of government, leading to boom of private channels in national and vernacular languages. The advertisers were quick to grab the opportunity to take their products to nook and corners of target markets as they realized the potential TV to be the most effective means of mass communication. The advertising today, no matter whether it is print, electronic or any other form extraordinarily creative and innovative with the sole objective of grabbing the attention of target groups.
Social and Ethical Issues in Advertising
In the olden days few firms were engaged in production and distribution of goods and services and that never bothered to advertise much. So, the message was straight and clear. But with enormous growth of business, evolution of market economies, the competition turned more ruthless, if not uglier. The rapid changes in market environment drive the marketers to explore unique and innovative paths of advertising; the urge leading to embracing even unethical and immoral means in advertising, with little consideration for social and ethical values.
Ethics are moral standards or principles against which one’s behavior is judged. It broadly includes: Honesty, Integrity, Fairness and Sensitivity. Though ethics is always a matter of personal values and interpretation, there are certain ethical standards governing the conduct of individuals and organizations in the society.
According toThomas. C.O. Guinn (1997), ethical advertising should have:
1. No place for deception and puffery.
2. Ads aimed at children should be controlled since it promotes superficiality. It influences children’s demands for everything they watch on TV.
3. Advertisers promoting theme parks and casinos etc. in the pretext of action shows in TV without revealing sponsor’s name amounts to influencing children.
4. Promotion of controversial products, gambling, wagering in the media should be checked.
According to Leon Querra, the term social responsibility in the context of advertising implies:
1. Truthfulness of ad messages.
2. Social impact of ad campaign.
3. Impact of ad content on morality.
Pointing to sexuality in advertising, Steadman observes exposing male and female body is a matter of interest to all human beings; and use of sexually attractive females in ads helps to gain product and brand recognition, ad recall and sales. Firms certainly benefit out of sexual and vulgar elements in ads: but the question remains what impact it leaves on viewers of such ads and their social behavior. On the sex appeal in ads, a letter by a woman reader to Detroit News deserves a mention here:
A love goddess runs down the beach waves nibbling at her toes, runs faster until she finally throws her-self breathlessly in to His arms- Where is this scene? Right in your living room; wild and passionately aroused, she can’t stop herself, who is watching? Your 9-year-old daughter. The letter received considerable response from ad professionals. Terris.O.Sullivan in his article Advertising and Children makes a worthy reference in this context: UN Convention on the rights of children defines children as an exposed group in society, in need of special care and protection; (children) are viewed as less experienced and more impressionable than adults. The message is that advertisers aiming their campaign should be aware of this fact.
Social Responsibility of Advertising In the Words of Earl.W.Kinter Includes:
1. To avoid unhealthy competition.
2. To avoid diversion of sales through deception.
3. To avoid use of market power to stifle innovation.
4. To avoid flooding of consumers with false and misleading statements.
5. Accountability to public.
6. Responsibility towards corporate family including employees, management and stockholders
7. Ethical considerations.
8. Affecting interest of government agencies.
National Association of Broadcasters, USA, insists that ads aimed at children should be:
1. Non exploitative in nature, style and tone.
2. Non-exhortative language, audio and visual techniques to be used.
3. Claims of nutritional values of food/ food supplements should have strong evidence.
4. Celebrities can’t say they like/ use product.
5. There should be restraint on adverting products such as tobacco, drugs, liquor etc. by media and companies.
6. Obligation to tell the truth.
Much of advertising is designed to evoke and provoke emotions, and weaker instincts of human beings often prey to it, and it strips consumer of his sovereignty. Based on relevant review of literature, various ethical issues in advertising with specific reference to TV advertising have been compiled. Here is a glance of the same Marilyn (2003).
1. Ads with an element of fantasy, say claiming that use of certain tooth paste/ throat freshener gives the feeling of being in Himalayas, a cool drink that makes the drinker to express her feelings boldly
2. Ads misleading people, like claiming that use of hair dyes for permanent change in hair color
3. Ads inducing children to perform unsafe/ unhygienic acts. For instance a boy took his bath by Dettol Soap or gets his clothes washed by Surf-Excel powder can gather mud and sludge is the message conveyed by the respective ads.
4. Ads belittling women, showing them in low esteem. For instance, a woman shown in tight and scarce clothes in Motorola ad, a woman eloping with her driver while her obese husband obsessed with watching the beautiful TV, another woman runs away with a man who chews Minto-fresh, a fair woman kissing a black who cleaned his teeth with Today paste- just few to name as the list in this category is endless
5. Ad’s projecting women in stereotype-to be jealous, unsecured, possessive and so on often in the ads of cosmetic goods
6. Advertising undesirable and prohibited goods in the guise of normal goods with the same brand. Example premium liquor brands are promoted in the guise of club soda or mineral water
7. Ads magnifying the simple truth. For instance, it is of common knowledge that skin is affected by changes in the climate and age factor. But showing scars/ wrinkles/ dark circles to the threatening level is uncalled for.
8. Projecting women in irrelevant contexts from tobacco, shaving cream and other male products
9. Ads highlighting certain ingredients of products that actually used in marginal quantities. For example, claims of using butter, milk cream cashew, almonds, egg proteins and the like in food products, shampoos, oils, bath soaps give misleading impression to the naïve consumer
10. Highlighting certain elements of products that have little / no practical use. Example cooling crystals used in a tooth paste, color granules used in detergent powders
11. Untenable promises as to the performance/ effectiveness of the product. For example, a pain balm/ killer that gives instant pain relief, a detergent powder that give glittering new look to clothes, a tooth paste that helps attracting others
12. Ads inducing consumer more quantities than required, say a boy consumes Maltova powder as it is, with ice-cream, with milk in a large tumbler and soon
13. Celebrity endorsement- a deliberate attempt to mislead people: Sachin for Boost and Sania Mirza for Sprite, for instance, as if they got their energies from the products. The costs are ultimately borne by the consumer
14. Making impracticable promises. Say for example Shahrukh Khan saying “Main Hoon Na” for hero Honda, will he be responsible if something goes wrong with the bike?
15. Celebrities endorsing controversial/ hazardous products, like beverages, Wine and the like, winning the wrath of social activists
16. Ad messages suppressing vital facts of products and possible side effects and undesirable consequences of using products
17. Ads frightening women of consequences of not using the product, for instance a woman not using certain hair dye will be neglected by her husband
18. Advertising can violate the dignity of the human person both through its content- what is advertised and the manner in which it is advertised. Example in Orbit chewing gum ad, the product is tested on a buffalo, the teeth sparkles, and the ad man says the product works well with human being, as it worked well with an animal, after all man is also a social animal; similarly close-up ad shows that the users of the product alone could smile confidently, while the non-users look awkward when they smile
19. Advertising often alleged to be intrusive, TV advertising more specially, it accused to be a visitor who is overstayed his welcome
20. Ads promote materialism, wherein undue importance is given to material interests, neglecting real needs, and satisfy wants that are artificially created
21. Competition abuse by firms is getting bitter: Who could forget the war-of-words exchanged between Pepsi Co and Coke in the ads
22. Discount offers, literally with no genuine offers, help selling larger quantities than actually required by consumers, and saving pack/ combo packs sell fast and slow-moving goods together
The Silver lining in the Cloud
In the spate of wrongful/ deceitful ads scathing the lives of people, some socially responsible ads promise a change for better scenario in near future. The ads promoting social consciousness through brands like Lifebouy, Rin Advanced etc. to help underprivileged children, supporting a girl child, protecting environment and so on. ITC’s initiative in developing rural India through its ads; the celebrities campaigning on public health issues, say Polio vaccination, to name a few in the category. Similarly, projection of women in ads witnessed a bit positive change, with some ads showing women in professional pursuits, to be more responsible, confident, supporting their parents, compassionate- that reflects the reality to some extent Philip (1993).
Advertising Regulation
The need for regulation of advertising has been felt as early as quarter century ago. Advertising Club of Ireland established the 1st self-regulation organization by name Better Business Bureau. By1976, there were about 240 BBBs throughout USA. While the National Advertising Review Board started functioning since 1971 in USA, which receives complaints from National Advertising Division, a council for BBBs and takes appropriate action Tsalikis (2006).
In 1914 Federal Trade Commission Act was passed, which created federal agency for regulation of advertising. The agency focused on controlling deceptive and misleading ads. An ad is said to be deceptive if it contains:
1. A misrepresentation, omission or a practice that is likely to mislead.
2. The consumer acting rationally in the circumstances.
3. The practice is material and the consumer injury is possible.
Misrepresentation and Omissions Occur
1. By suggesting that a minute difference is important when it is not actually
2. Artificial product demonstrations claiming superior performance
3. Using ambiguous or confusing the phrase, say Fights Decay; Number one tooth paste recommended by dentists
4. Implying a benefit that doesn’t fully or partly exists
5. Implying that a product benefit is unique to a particular brand
6. Incorrectly implying that an endorser uses and advocates the brand
7. Omitting a needed disclosure
8. Making a claim without substantiation
9. Bait and switch, i.e. companies soliciting business on one basis and diverting the consumers to other products
10. Non-identification of advertising, i.e. airing commercials in the name of consumer awareness programs
11. Infringement of copy Rights, Intellectual Property Rights and so on
Deception and Puffery
Puffery is an acceptable level of exaggeration and a rather well-established rule of law is that trade tuff in is permissible puffing may take a form of subjective statement of opinion about a product quality, using such terms as best, greatest, better than the best and so on Steven (2006).
Remedies
Remedies under FTC against deceptive advertising include.
1. Cease and desist orders, which prohibits the respondent from engaging further in the deceptive practice.
2. Restitution, that means the consumer is compensated for any damage, which rarely considered in view of its severity.
3. Affirmative disclosures that require clear and conspicuous disclosure of omitted information often related to deficiencies and limitations of product
4. Corrective advertising that require advertisers to rectify past deception by making suitable changes in the future commercials
5. Competitor law suits, in which firms claim that false advertising of rival caused them damage. (In Pepsodent’s claim that their brand is 102% superior to the rival brand had to be withdrawn following competitor’s law suit)
6. Self-regulation, that is restraint of advertisers, endorsers, agencies and media would go a long way in combating deceptive advertising
7. Prohibition of advertising harmful products may reduce the demands for such products (however the rising sales of such products in India tell a different story)
8. Restrictions on advertising budgets and to place tax/ reduce tax deduction allowed for advertising may control the menace to some extent Rajeev (2002).
Self-Regulation
Most of the self-regulation organizations in the world base their work on the codes prepared and published by International Chamber of Commerce, the world business organization that represents all sectors of world. The Global Survey Report on Self-Regulation Organizations emphasizes that “it is recognition of advertising industry (advertisers, agencies and media) that advertising should be legal, decent, honest and truthful with a sense of responsibility to consumer and society at large Laura (2004); Kenneth (2005).
Self-Regulation in India
In India, Advertising Standards Council of India- ASCI is the only self-regulation organization Gerald (2003). It was established in 1986 with a view to achieve acceptance of fair advertising practices in the best interests of ultimate consumer. The major objectives of ASCI include:
1. To ensure truthfulness and honesty in advertising
2. To ensure that ads are not offensive
3. To safeguard consumers against indiscriminate advertising of hazardous products
4. To ensure fair competition in advertising
The code applies to advertisers, agencies and media. ASCI provide service free of charge through its most powerful and autonomous wing Consumer Complaints Cell-CCC. The Cell upheld about numerous complaints and at least 79% of the ads were modified/ withdrawn to comply with the code of ASCI. Since the year 2006, Ministry of Information and Broadcasting issued notification to make it necessary for all TV ads in India to abide by ASCI Code. R.M.Poddar, the then chairman of ASCI said, “I would like to appreciate the effort of the Ministry in making the advertising self-regulation movement in India stronger and more effectual”. The CCC of ASCI acted against Ariel ad of Procter and Gamble Home Products Ltd. Brief explanation of the case has been presented Heidi (1997); Sergio (2004).
Visuals show a boy spraying ink from his pen by shaking it on to back of another boy’s shirt. He then closes the door, opens it and shakes the pen again. Unfortunately, it is sprayed onto the front of a teacher’s shirt. Voice over: “as long as Ariel is there for Rs 2/- the shirt can be washed white”. The Council observed it is objectionable and wrong to put this message across using children. The ad should be withdrawn since this act being done by a child; it may prompt and encourage other children to adopt same antics, which are harmful.
The present study of “Ethical issues in Advertising” attempts to cover various ethical issues involved in advertising. The present study intended to specifically point out the need for ethics in advertising in view of vulnerable groups getting more exposed to various TV & Radio channels and other electronic media and increasing commercials across the media.