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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
and premiums are subject to regulation.
Recently many states have
become very active in the regulation
of contests and sweepstakes.
Trade promotion practices, such as
the use of promotional allowances
and vertical cooperative advertising,
are regulated by the Federal
Trade Commission under the
Robinson-Patman Act. The FTC also
Key Terms
self-regulation, 712
Better Business Bureau,
715
Council of Better
Business Bureaus, 715
National Advertising
Review Board, 716
National Advertising
Review Council, 716
Federal Trade
Commission, 722
commercial speech, 722
Central Hudson Test,
722
Federal Trade
Commission Act, 723
Wheeler-Lea
Amendment, 723
trade regulation rules,
724
unfairness, 725
Discussion Questions
1. Do you agree with the DISCUS
argument that hard liquor is at a
competitive advantage against
wine and beer if it cannot
advertise on television? Evaluate
the decisions by NBC to become
the first broadcast network to
accept liquor advertising and then
dropping its plans to do so.
2. Evaluate the controversy
discussed in IMC Perspective 21-2
over the “Kenya” commercial from
the perspective of both Just For
Feet and the Saatchi & Saatchi
advertising agency. With whom
does the ultimate responsibility
for the airing of this commercial
lie, the client or the agency?
3. Discuss the role the media play
in the self-regulation of advertising.
Do you think media selfregulation
is an effective way of
protecting consumers from offensive
or misleading advertising?
4. Do you agree with the decision
by the California Supreme Court to
21. Regulation of
Advertising and Promotion
enforces laws in a variety of areas
that relate to direct marketing and
mail-order selling, while the FCC
has rules governing telemarketing
companies.
Currently there are few specific
laws governing marketing practices
on the Internet. However, two
major areas of concern with regard
to marketing on the Internet are
puffery, 725
deception, 726
affirmative disclosure,
726
advertising
substantiation, 729
consent order, 730
cease-and-desist order,
730
view statements about a
company’s labor policies or operations
in ads or press releases as
commercial in nature and thus
subject to government regulation?
Discuss how this ruling might
affect various forms of integrated
marketing communications used
by companies such as Nike.
5. IMC Perspective 21-2 discusses
the legal battle between Pizza Hut
and Papa John’s over the latter’s
use of the tagline “Better Ingredients.
Better Pizza.” Which company
do you side with in this
controversy and why?
6. What is meant by advertising
substantiation? Should advertisers
be required to substantiate their
claims before running an ad or
should they be required to provide
documentation only if their advertising
claims are challenged?
7. Discuss the Lanham Act and
how it affects advertising. What
elements are necessary to win a
© The McGraw−Hill
Companies, 2003
privacy and online marketing to
children. The Federal Trade Commission
has called for voluntary
industry codes rather than FTC
rules to govern marketers’ use of
the Internet. Concerns over online
marketing to children have led to
the passage of the Children’s Online
Privacy Protection Act, which the
FTC began enforcing in early 2000.
corrective advertising,
731
Lanham Act, 738
National Association of
Attorneys General,
740
Children’s Online
Privacy Protection
Act, 746
false advertising claim under the
Lanham Act?
8. IMC Perspective 21-3 discusses
the debate over direct-toconsumer
advertising. Do you
agree with the decision by the
Food and Drug Administration to
issue new guidelines making it
easier for pharmaceutical companies
to advertise prescription
drugs on television as well as in
print media?
9. The Federal Trade Commission is
in the process of developing a
national “do-not-call” registry. Discuss
how this registry will impact
the direct marketing industry.
What arguments might direct markets
use in trying to prevent the
implementation of such a
program?
10. What are the major areas of
concern with regard to marketing
on the Internet? Evaluate the steps
being taken to address these
concerns.
747