Advertising Ethics & Regulations Flashcards

What is 'greenwashing' in the context of advertising ethics?

Answer: Making misleading environmental claims to appear eco-friendly

Greenwashing occurs when advertisers make false or exaggerated environmental claims to mislead consumers into thinking a product is more eco-friendly than it is.

The FTC's '.com Disclosures' guidelines address which advertising challenge?

Answer: Making disclosures clear and conspicuous in online and mobile ads

The FTC's '.com Disclosures' guidance instructs advertisers how to make required disclosures clear and conspicuous in digital and mobile environments where space is limited.

Under the FTC Act, an advertising practice is considered 'unfair' if it meets which standard?

Answer: It causes substantial consumer injury that is not outweighed by benefits and cannot be avoided by consumers

The FTC's unfairness standard requires that the practice causes or is likely to cause substantial consumer injury, that the injury is not outweighed by countervailing benefits, and that consumers cannot reasonably avoid the injury.

Which organization publishes the Advertising Standards Authority (ASA) codes for broadcast advertising in the United Kingdom, relevant to U.S. advertisers running global campaigns?

Answer: Ofcom and CAP

In the UK, broadcast advertising is regulated by Ofcom while the Committee of Advertising Practice (CAP) writes the codes enforced by the ASA—important knowledge for global campaign compliance.

What is the ethical principle of 'truthfulness' in advertising primarily concerned with?

Answer: Ensuring all claims are accurate and not designed to deceive consumers

Truthfulness in advertising ethics means that all representations, whether explicit or implied, must accurately reflect reality and not create false impressions in the minds of consumers.

Tobacco advertising is banned on which media channels under U.S. federal law?

Answer: Television and radio broadcasts

The Public Health Cigarette Smoking Act (1970) banned cigarette advertising on television and radio; the Family Smoking Prevention and Tobacco Control Act extended FDA authority over tobacco marketing.

What does 'native advertising' require from an ethics and regulation standpoint?

Answer: It must be clearly labeled so consumers recognize it as paid content

FTC guidelines require that native advertising be clearly and conspicuously disclosed as paid advertising so consumers are not deceived into thinking they are reading independent editorial content.