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Part Seven Special Topics and Perspectives
Belch: Advertising and
Promotion, Sixth Edition
Self-Regulation
Exhibit 21-1 The Kinney
& Lange firm specializes in
Intellectual Property Law
VII. Special Topics and
Perspectives
21. Regulation of
Advertising and Promotion
© The McGraw−Hill
Companies, 2003
For many years, the advertising industry has practiced and promoted voluntary
self-regulation. Most advertisers, their agencies, and the media recognize the
importance of maintaining consumer trust and confidence. Advertisers also see
self-regulation as a way to limit government interference, which, they believe, results
in more stringent and troublesome regulations. Self-regulation and control of advertising
emanate from all segments of the advertising industry, including individual advertisers
and their agencies, business and advertising associations, and the media.
Self-Regulation by Advertisers and Agencies
Self-regulation begins with the interaction of client and agency when creative ideas are
generated and submitted for consideration. Most companies have specific guidelines,
standards, and policies to which their ads must adhere. Recognizing that their ads reflect
on the company, advertisers carefully scrutinize all messages to ensure they are consistent
with the image the firm wishes to project. Companies also review their ads to be
sure any claims made are reasonable and verifiable and do not mislead or deceive consumers.
Ads are usually examined by corporate attorneys to avoid potential legal problems
and their accompanying time, expense, negative publicity, and embarrassment.
Internal control and regulation also come from advertising agencies. Most have standards
regarding the type of advertising they either want or are willing to produce, and
they try to avoid ads that might be offensive or misleading. Most agencies will ask their
clients to provide verification or support for claims the clients might want to make in
their advertising and will make sure that adequate documentation or substantiation is
available. However, agencies will also take formal steps to protect themselves from
legal and ethical perils through agency-client contracts. For example, many liability
issues are handled in these contracts. Agencies generally use information provided by
clients for advertising claims, and in standard contracts the agency is protected from
suits involving the accuracy of those claims. Contracts will also absolve the agency of
responsibility if something goes wrong with the advertised product and consumers suffer
damages or injury or other product liability claims arise. 4 However, agencies have
been held legally responsible for fraudulent or deceptive claims and in some cases have
been fined when their clients were found guilty of engaging in deceptive advertising. 5
Many agencies have a creative review board or panel composed of experienced personnel
who examine ads for content and execution as well as for their potential to be perceived
as offensive, misleading, and/or deceptive. Most agencies also employ or retain
lawyers who review the ads for potential legal problems. Exhibit 21-1 shows an ad for a
legal firm specializing in advertising law and intellectual property.
Most marketers and their agencies work closely with one another to develop advertising
that adheres to legal and ethical standards. IMC Perspective 21-1 discusses how
the former owner of the Just For Feet athletic-shoe chain filed a lawsuit against its