Effects of Advertising
Economic, Social, Legal
Eras of Advertising
1. Exaggerated Claims 1865-1900
No regulation
The Era of Snake Oil and Medicine Shows
“Snake Oil” is a derogatory term for compounds offered as medicines which implies that they are fake,
fraudulent, or ineffective. The expression is also applied metaphorically to any product with exaggerated marketing
but questionable or unverifiable quality.
http://blog.wired.com/gadgets/2007/11/10-awesome-gadg.html
Caveat emptor … “Let the buyer beware”
Under the doctrine of caveat emptor, the buyer could not recover from the seller for
defects on the property that rendered the property unfit for ordinary purposes.
Before statutory law, the buyer had no warranty of the quality of goods. In many jurisdictions,
the law now requires that goods must be of "merchantable quality". However, this implied warranty can be
difficult to enforce, and may not apply to all products. Hence, buyers are still advised to be cautious.
2. Public Awareness 1900-1965
- Food and Drugs Act ‘06,
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- Inspired by Upton Sinclair’s novel, The Jungle
- Food & Drug Administration ‘38
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Federal Trade Commission was created in 1914
FTC regulates advertising-not Federal Communications Comission (FCC)
Advertisers must be able to substantiate their advertising claims.
3 part test:
• Must not mislead
• Consumer viewpoint
• Material Misrepresentation
*Free Credit Reports
*National Do Not Call Registry
New Deal: Early to Mid 30s
Government’s responsibility to protect its citizens
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“Alphabet Agencies” like SEC, FCC, FHA, FDIC, SSA
3. Social Responsibility 1965: “The Great Society”
Ad Council PSAs
www.adcouncil.org
Ad Council Video
Historic Campaigns
Rosie the Riveter
Keep America Beautiful
McGruff the Crime Dog
Buckle Up for Safety
Crash Dummies
4. Interactive Era: Backlash & Retrenchment?
Backlash: disenchantment with bureaucracies and onorous government regulation
• back to Caveat emptor?
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