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Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives Figure 21-4 FTC complaint procedure 21. Regulation of Advertising and Promotion remember some or all of the claim. To address the problem of residual effects, in the 1970s the FTC developed a program known as corrective advertising. An advertiser found guilty of deceptive advertising can be required to run additional advertising designed to remedy the deception or misinformation contained in previous ads. The impetus for corrective advertising was another case involving Campbell Soup, which placed marbles in the bottom of a bowl of vegetable soup to force the solid ingredients to the surface, creating a false impression that the soup contained more vegetables than it really did. (Campbell Soup argued that if the marbles were not used, all the ingredients would settle to the bottom, leaving an impression of © The McGraw−Hill Companies, 2003 Consumer Competitor FTC Staff If substantial evidence of violation, cease-and-desist order written by ALJ Advertiser and FTC agree Case resolved Advertiser or commission rejects order Hearing before administrative law judge (ALJ) Staff Investigation Dismissed Proposed complaint and consent order written Reviewed by commissioners Dismissed Advertiser or FTC appeal Hearing before commissioners Appeals court Advertiser agrees or negotiates Dismissed Dismissed Case resolved 731 Chapter Twenty-one Regulation of Advertising and Promotion
732 Part Seven Special Topics and Perspectives Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives Figure 21-5 Examples of corrective advertising messages Profile Bread “Hi, [celebrity’s name] for Profile Bread. Like all mothers, I’m concerned about nutrition and balanced meals. So, I’d like to clear up any misunderstanding you may have about Profile Bread from its advertising or even its name. “Does Profile have fewer calories than any other breads? No. Profile has about the same per ounce as other breads. To be exact, Profile has seven fewer calories per slice. That’s because Profile is sliced thinner. But eating Profile will not cause you to lose weight. A reduction of seven calories is insignificant. It’s total calories and balanced nutrition that count. And Profile can help you achieve a balanced meal because it provides protein and B vitamins as well as other nutrients. “How does my family feel about Profile? Well, my husband likes Profile toast, the children love Profile sandwiches, and I prefer Profile to any other bread. So you see, at our house, delicious taste makes Profile a family affair.” (To be run in 25 percent of brand’s advertising, for one year.) 21. Regulation of Advertising and Promotion © The McGraw−Hill Companies, 2003 fewer ingredients than actually existed!) While Campbell Soup agreed to stop the practice, a group of law students calling themselves SOUP (Students Opposed to Unfair Practices) argued to the FTC that this would not remedy false impressions created by prior advertising and contended Campbell Soup should be required to run advertising to rectify the problem. 53 Although the FTC did not order corrective advertising in the Campbell case, it has done so in many cases since then. Profile Bread ran an ad stating each slice contained fewer calories than other brands—but the ad did not mention that slices of Profile bread were thinner than those of other brands. Ocean Spray cranberry juice was found guilty of deceptive advertising because it claimed to have more “food energy” than orange or tomato juice but failed to note it was referring to the technical definition of food energy, which is calories. In each case, the advertisers were ordered to spend 25 percent of their annual media budgets to run corrective ads. The STP Corporation was required to run corrective advertising for claims regarding the ability of its oil additive to reduce oil consumption. Many of the corrective ads run in the STP case appeared in business publications to serve notice to other advertisers that the FTC was enforcing the corrective advertising program. The texts of the corrective messages required in each of these cases are shown in Figure 21-5. Corrective advertising is probably the most controversial of all the FTC programs. 54 Advertisers argue that corrective advertising infringes on First Amendment rights of freedom of speech. In one of the most publicized corrective advertising cases Ocean Spray “If you’ve wondered what some of our earlier advertising meant when we said Ocean Spray Cranberry Juice Cocktail has more food energy than orange juice or tomato juice, let us make it clear: we didn’t mean vitamins and minerals. Food energy means calories. Nothing more. “Food energy is important at breakfast since many of us may not get enough calories, or food energy, to get off to a good start. Ocean Spray Cranberry Juice Cocktail helps because it contains more food energy than most other breakfast drinks. “And Ocean Spray Cranberry Juice Cocktail gives you and your family Vitamin C plus a great wake-up taste. It’s . . . the other breakfast drink.” (To be run in one of every four ads for one year.) STP As a result of an investigation by the Federal Trade Commission into certain allegedly inaccurate past advertisements for STP’s oil additive, STP Corporation has agreed to a $700,000 settlement. With regard to that settlement, STP is making the following statement: “It is the policy of STP to support its advertising with objective information and test data. In 1974 and 1975 an independent laboratory ran tests of the company’s oil additive which led to claims of reduced oil consumption. However, these tests cannot be relied on to support the oil consumption reduction claim made by STP. “The FTC has taken the position that, in making the claim, the company violated the terms of a consent order. When STP learned that the test did not support the claim, it stopped advertising containing that claim. New tests have been undertaken to determine the extent to which the oil additive affects oil consumption. Agreement to this settlement does not constitute an admission by STP that the law has been violated. Rather, STP has agreed to resolve the dispute with the FTC to avoid protracted and prohibitively expensive litigation.”
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620 Belch: Advertising and Promotio
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624 Part Six Monitoring, Evaluation
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IN2 Name and Company Index Belch: A
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