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Advertising Prohibitions

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Title: Advertising Prohibitions


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Regulatory Prohibitions
  • Regulations of
  • Federal Trade Commission
  • Food and Drug Administration
  • Federal Communication Commission
  • State and Local entities

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Regulatory Prohibitions - FTC
  • Federal -- FTC
  • Deception in advertising
  • Corrective advertising
  • Listerine will not help prevent colds or sore
    throats or lessen their severity
  • Advertising substantiation
  • Agencies must have concrete evidence before
    disseminating product performance claims
  • Lite
  • Organic
  • Natural

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Regulatory Prohibitions - FTC
  • Deception Acts that cause or are likely to
    cause substantial injury to consumers, which is
    not reasonable avoidable by consumers themselves
  • Listerine
  • Misappropriation
  • Tootsie Roll vs. Tushie Roll

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4 recent FCC Cases
  • Four separate cases
  • Xenadrine EFX
  • CortiSlim
  • TrimSpa
  • One-a-Day Weight Smart
  • false and unsubstantiated advertising claims
  • Companies have
  • Paid 25million in fines
  • Agreed to limit advertising claims in the future

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Xenadrine EFX
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Xenadrine EFX
  • Xenadrine EFX
  • Will pay 8 12.8 million
  • Made claims that could not be scientifically
    proven
  • CLAIMS clinically proven to cause rapid and
    substantial weight loss and to be more effective
    than ephedrine-based products
  • CLAIMS testimonials claimed lost weight with
    only the product

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What was wrong with the advertising?
  • MISREPRESENTATION
  • What scientific studies showed
  • Experimental group taking Xenadrine lost 1.5
    pounds in 10 weeks
  • A control group with a placebo lost 2.5 pounds in
    10 weeks
  • Testimonials
  • Were paid 1,000 - 20,000
  • Used a combination of diet and exercise
  • Ads didnt disclose this information

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CortiSlim Headline Is stress making you fat?
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CortiSlim and CortiStress
  • CortiSlim and CortiStress
  • Will pay 12 million
  • National ads on broadcast and cable TV, print
    internet
  • CLAIMS causes rapid, substantial and permanent
    weight loss in all users
  • CLAIMS reduces risk of disease, including
    osteoporosis, obesity, diabetes, Alzheimers,
    cancer, cardiovascular disease

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What was wrong?
  • MISREPRESENTATION
  • Advertising was made to look like a talk show
  • Could not produce clinical, independent studies
    to support their claims

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TrimSpa
  • The ad

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TrimSpa
  • Makers of TrimSpa will pay 1.5 million
  • CLAIMS Ingredient, Hoodia gordonii, enables
    users to lose substantial weight by suppressing
    appetite.
  • CLAIMS Celebrity testimonial. Anna Nicole Smith
    lost 69 pounds in 8 months using TrimSpa
  • CLAIMS It makes losing 30, 50, even 70 pounds
    (or however many you need to lose) painless.

17
What was wrong with the advertising?
  • Claims were not scientifically substantiated
  • Prohibits making any claims about
  • Health benefits
  • Performance
  • Efficacy
  • Safety
  • Side effects
  • Must have competent, reliable scientific
    evidence

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One-A-Day Weight Smart
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One-A-Day Weight Smart
  • Will pay 3.2 million
  • CLAIMS
  • Increases metabolism
  • Enhances metabolism with its EGCG, a natural
    green tea extract
  • Helps prevent weight gain in those over 30
  • Helps users control weight by enhancing metabolism

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Whats wrong with the advertising?
  • Lacked neutral, clinical studies demonstrating
    the scientific validity of claims

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In Summary
  • No proof the product is harmful or damages health
  • Product will remain on shelves
  • Must change advertising
  • Or provide credible and substantial evidence
  • FTC will ask media not to run these ads

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Regulatory Prohibitions Tobacco
  • Federal law prohibits advertising for
  • cigarettes,
  • little cigars,
  • smokeless tobacco,
  • chewing tobacco
  • Prohibited on radio, TV, or any other medium of
    electronic communication under the FCC's
    jurisdiction.

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Advertising Prohibitions -- Tobacco
  • The law does NOT ban the advertising of
  • smoking accessories,
  • cigars,
  • pipes,
  • pipe tobacco,
  • cigarette-making machines.

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Ohio Alcohol Regulation
  • 1. Prohibits Images of Children in Alcohol Ads
  • Also includes toys and other images associated
    with childhood
  • 2. Prohibits Images or Statements that Portray
    or Encourage Intoxication
  • extra Strong
  • Rapid rate
  • Activities that encourage excess

25
Ohio Alcohol Regulation
  • Restricted around schools and other places
    children likely to be present

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Ohio Alcohol Regulation
  • Limit Giveaways
  • Contests
  • Raffles
  • Promotional materials to those who are underage
  • Prohibit giveaways as a reward for purchasing a
    product.

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Regulatory Prohibitions - Lotteries
  • Federal law prohibits broadcasting any
    advertisement for a lottery or any information
    concerning a lottery.

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Regulatory Prohibitions - Lotteries
  • A lottery is any game, contest, or promotion that
    contains the elements of
  • prize,
  • chance,
  • consideration" - a legal term that means an act
    or promise that is made to induce someone into an
    agreement.

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Regulatory Prohibitions - Lotteries
  • There are a number of exceptions to this
    prohibition.

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Regulatory Prohibitions - Lotteries
  • Lotteries conducted by a state acting under the
    authority of state law where the advertisement or
    information is broadcast by a radio or TV station
    licensed to a location in that state or in any
    other state that conducts such a lottery

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Regulatory Prohibitions - Lotteries
  • Gaming conducted by an Indian Tribe under the
    Indian Gaming Regulatory Act

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Regulatory Prohibitions Lotteries
  • Lotteries authorized or not otherwise prohibited
    by the state in which they are conducted, and
    which are conducted by a not-for-profit
    organization or a governmental organization

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Regulatory Prohibitions - Lotteries
  • Lotteries conducted as a promotional activity by
    commercial organizations that are clearly
    occasional and ancillary to the primary business
    of that organization, as long as the lotteries
    are authorized or not otherwise prohibited by the
    state in which they are conducted. The
    prohibition regarding lottery advertising is
    currently under review by the Supreme Court.

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Regulatory Prohibitions - FCC
  • Criticism, Ridicule, and Humor Concerning
    Individuals, Groups, and Institutions.
  • The First Amendment's guarantee of freedom of
    speech protects programming that stereotypes or
    otherwise offends people with regard to their
    religion, race, national background, gender, or
    other characteristics.

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Regulatory Prohibitions - FCC
  • It also protects broadcasts that criticize or
    ridicule established customs and institutions,
    including the government and its officials.

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Regulatory Prohibitions Sponsorship
  • Sponsorship Identification.
  • Sponsorship identification or disclosure must
    accompany any material
  • that is broadcast
  • in exchange for
  • money,
  • service
  • anything else of value paid to a station, either
    directly or indirectly.

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Regulatory Prohibitions Amount of Advertising
  • Except with respect to children's television
    programming, no law or regulation limits the
    amount of commercial matter that a station may
    broadcast.

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Regulatory Prohibitions Amount of Advertising
  • In TV programs aimed at children 12 and under,
    advertising may not exceed 10.5 minutes an hour
    on weekends and 12 minutes an hour on weekdays.

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Regulatory Prohibitions
  • Loud Commercials.
  • In surveys and technical studies of broadcast
    advertising, the FCC have found that loudness is
    a judgment that varies with each listener
  • It is influenced by many factors (such as an
    announcement's content and style).
  • The FCC have also found no evidence that stations
    deliberately raise audio and modulation levels to
    emphasize commercial messages.

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Regulatory Prohibitions
  • Loud Commercials.
  • Broadcast licensees have primary responsibility
    for the adoption of equipment and procedures to
    avoid objectionably loud commercials.

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Regulatory Prohibitions
  • Loud Commercials.
  • Stations should identify each message by the
    sponsor or product's name and by the date and
    time of the broadcast.

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Regulatory Prohibitions Subliminal Advertising
  • Subliminal programming is designed to be
    perceived on a subconscious level only.
  • Regardless of whether it is effective, the use of
    subliminal perception is inconsistent with a
    station's obligation to serve the public interest
    because the broadcast is intended to be
    deceptive.
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