Advertising Ethics, Codes and Laws

Paper Code: PGDAPR-103

ASSIGNMENT-I

1. What is credibility in advertising?

Answer: More than three in four consumers say most of the claims that brands make in advertisements are
exaggerated, according to a study by Lab42.
Specifically, among surveyed consumers, 57.4% say advertising claims are “somewhat exaggerated,” and 19.0% say they
are “very exaggerated,” Lab42 reported.

Only 2.8% of consumers surveyed say the claims in various ads are very accurate. For the full report, click here.
How did we come to this sad, sorry state of affairs? How did a whole industry undermine its own credibility without
raising alarms? Here’s my personal take. The advertising industry I joined as a young man (at Leo Burnett in Chicago in
1972) was much different than the industry today. It seemed every commercial I wrote was scrupulously reviewed by
agency lawyers, industry associations, and government regulators. Likewise, research ruled.

Commercials were tested, refined and retested in animatic form before production. Then commercials were tested
again in finished form after production. Commercials were more trusted then and felt more compelling. They worked.
Even clients believed … in the process.

Then during the Eighties, creatives revolted. They felt straight-jacketed. They argued that:

 Research forced everything into the same expected mold.

 Lawyers sapped the fun out of commercials.
 Advertising was failing to differentiate brands and make them stand out.
 People didn’t watch TV to look at the ads; they watched it to be entertained.
 Advertising needed to be more entertaining to succeed.
At that point, the race for eyeballs had begun. The creative development process was more about eye-candy. Writers
and art directors argued that if people weren’t watching, there was no way the commercial could succeed. Of course,
they were right.

But that logic contained several fatal flaws:

 It assumed that people weren’t attending to commercials.

 Gaining attention is only the first battle for customers’ hearts.
 Unless advertising also manages to convert that awareness into interest and preference, it has failed.
While the Nineties were certainly a fun period to be in advertising, the industry was sowing the seeds of its own
destruction. The eye-cand y theorists failed to realize the devastation that unregulated, unpersuasive advertising would
wreak on the industry.

Today, that eye-candy leaves many with a bad aftertaste. Perhaps it’s time for the pendulum to begin switching back.
Better yet, perhaps it’s time for agencies to evolve to a higher level and to understand some basic truths.

In many cases, advertising makes people aware, but fails to gain interest. Therefore, prospects don’t seriously consider
the client’s product or service. Said another way, prospects don’t put the client on their shopping lists.

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.
The process looks like thi s. Information needs increase at every level.
1. Before people will purchase a brand, they must prefer it.
2. Before people will prefer a brand, they must be interested enough in it to put it on their shopping lists and
explore it further.
3. Before people will be interested in a brand, they must be aware of it.
The battle for dollars takes place on four levels, not just one. Awareness, interest and preference come before purchase.
Overlooking any of those steps is fatal to a sale.

And trust is essential to every s ingle one of them. If people don’t trust you, they won’t do business with you. People
don’t buy from advertising they don’t trust, and they certainly won’t buy from companies they don’t trust. Exaggeration
for the sake of eyeballs does not serve clients we ll.

2. Explain untruthful and fraudulent advertising.

Answer False advertising misleads the consumer or includes false statements. The legal de finition of false advertising
from the federal Lanham Act is, "Any advertising or promotion that misrepresents the nature, characteristics, qualities
or geographic origin of goods, services or commercial activities".
Examples of False Advertising
 Hidden fees - These are extra fees not specified in the advertised price, such as activation fees for cell phones or
pre-delivery inspection charges on a new car.
 "Going out of business" sales - This entails raising the prices from merchandise that was already on sale and then
marking them down.
 Misusing the word "free" - When the sale is "Buy one. Get one free," the second item is not really free because you
have to buy the first one.
 Changing the measurement units and standards - An example is changing from pounds and ounces to metric to hide
the fact that the product was downsized.
 Fillers - Food often has fillers to increase its weight, like meat injected with br oth or brine.
 Misuse of terms - This includes the terms "light" and "natural"
 Incomplete comparison - An example is saying a product is better than another but not explaining in what way it is
better.
 Inconsistent comparison - This includes comparing a pro duct to only the competitors it can beat.
 Misleading illustrations - An example is showing the product in a picture as being bigger than it actually is.
 Coloring - This would include putting yellow oranges in a red mesh bag to make them appear riper than t hey are.
 Angel dusting - This is adding a very small amount of something beneficial so it can be labeled as such, like a cereal
that contains 10 essential vitamins and the actual amount of them is less than one percent of the Recommended
Dietary Allowance.
 Bait and switch - This is advertising one product and substituting a similar product at a higher price, claiming the
advertised product is unavailable or sold out.
 Acceptance by default - This refers to a contract where the consumer must opt out of a serv ice or feature and if
they don't, they will be charged for it.
Companies Found Guilty of False Advertising
Here are examples of companies that were found guilty of false advertising:
 Activia yogurt - Dannon stated that its yogurt had nutritional benefits o ther yogurts didn't. They had to pay $45
million in a class action settlement.
 Splenda - Ads say it is made from sugar; but, that is not the case. It is made of highly -processed chemical
compounds.
 New Balance - One of their sneakers has been sold with cla ims to help consumers burn calories. No studies
confirmed this and the shoe turned out to be an injury hazard.
 Taco Bell seasoned beef - It was not really seasoned, but had oat filler. This tricked consumers into thinking it had a
higher grade of beef.

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.
 Definity eye cream - An Olay ad showed the model Twiggy wrinkle -free and the ads were retouched.
 Hyundai and KIA - These companies overstated the horsepower of their vehicles, as much as 9.6 percent.
 Airborne - It claimed to ward off germs to prevent the flu and colds, but no studies backed it up. Airborne had to
pay $23.3 million in the class -action lawsuit and $7 million settlement later.
 Kashi - The Company claimed their products are All Natural but they are full of synthetic and unnaturally processed
ingredients and actually some that are considered hazardous.
Advertising, when used correctly, can be an effective way to promote and sell p roducts. It can provide consumers with
the information they need to make a smart shopping decision. However, false advertising is harmful to both the
consumer and to the advertiser.
3. Throw light on Cinematograph Act.
Answer: Censorship is defined by the Oxford Dictionary as the 'prohibition or suppression of any part of the news,
books, films, etc. that are considered politically unacceptable, obscene, or a threat to security. ' Films are considered
an excellent medium of commu nication with the general public. The evolution of technology has brought a sea of
change in the way films have been able to reach the public in every corner of India. Additionally, it has boosted the
power of films to significantly contribute to the cultu ral and social development of the country. Generally, Press and
Films enjoy the same right and status as far as the constitution freedom related to expression and spreading of an
idea is concerned. Article 19(1) of the Constitution of Indi a guarantees free dom of speech and expression. Hence, both
Press and Films are regulated under this provision. It is pertinent to note that the above right is not absolute and has
certain limitations. Matters that are against foreign relations, public policy, integrity and sovereignty of the State,
decency and morality, public order, etc. are certain limitations to the above, as mentioned in the Article 19(2) of the
Constitution of India . Types of Certifications
There are mainly four kinds of certifications given by the Ce ntral Board of Film Certification:

1.Universal (U)
This type of certifications is the Unrestricted Public Exhibition, and the same holds no limitations for the age groups that
may watch the same. They could be family, educational or social oriented themes. This category has fantasy violence
and minimal foul language. When a movie is being certified U by the Board, it must ensure that the movie is suitable for
a family to watch it together including the children.

2.Parental Guidance (UA)

This type of certifi cation explains that the film is appropriate for all age groups. However, it is in the interest of the
children below the age of 12 to be accompanied by their parents. The reason could that the theme of the movie may not
be the most appropriate for the chi ld without the guidance of their parents.

3.Adults Only (A)

As the certification suggests, this type of film is restricted to adults only. Persons above the age of 18 are adults, for th e
meaning of this certification. The theme may contain disturbing, viol ent, drug abuse and other related scenes which are
not considered suitable for viewing by children who may be influenced by the same negatively. Films that meet the
requisites of the abovementioned criteria but are not suitable for exhibition to children o r those below the age of 18
shall be certified A.

4.Restricted to Special Class of Persons (S)

This is the last type of the certifications under the board, and the same explains that the films which are rated S are
meant for a special class of persons only . For example, doctors. If the Board is of the opinion the with regards to
content, nature and the theme of the film is to be restricted to members of a class of persons or any profession, the
above certification shall be given to such film.

OBJECTIVES OF FILM CERTIFICATION

A.The main objectives of the Board for the above are as follows :
Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.
 1. To ensure that the medium of the film responsible. Additionally, to safeguard the sensitivity of standards and
value of the society.
2. To ensure that creative freedom and expression are not unjustifiably curbed.
3. To ensure to adapt to the social changes.
4. To ensure the theme of the film provides a healthy and clean entertainment.
5. To ensure that the film is of cinematically an adequate standard and aesthetic value.

ASSIGNMENT -II

1. What is Intellectual Property Rights?

Answer: Definition
Intellectual property is the product of the human intellect including creativity concepts, inventions, industrial models,
trademarks, songs, literature, symbols, names, brands,....etc. Intellectual Property Rights do not differ from other property
rights. They allow their owner to completely benefit from his/her product which was initially an idea that developed and
crystallized. They also entitle him/her to prevent others from using, dealing or tampering with his/her product without prior
permission from h im/her. He/she can in fact legally sue them and force them to stop and compensate for any damages.

History of IPR
IPR is not a new concept. It is believed that IPR initially started in North Italy during the Renaissance era. In 1474, Venic e
issued a law regulating patents protection that granted an exclusive right for the owner. The copyright dates back to 1440
A.D. when Johannes Gutenberg invented the printing press with replaceable/moveable wooden or metal letters. Late in
the 19th century, a number of countries felt the necessity of laying down laws regulating IPR. Globally, two conventions
constituting the basis for IPR system worldwide had been signed; Paris Convention for the Protection of Industrial
Property (1883) Berne Convention for the Protectio n of Literary and Artistic Works (1886).

Protection of Intellectual Property Rights

Protection of IPR allows the innovator, brand owner, patent holder and copyright holder to benefit from his/her work, labor
and investment, which does not mean monopoly o f the intellect. Such rights are set out in the International Declaration of
Human Rights, which provides for the right to benefit from the protection of the moral and physical interests resulting from
the right holder’s work; literal or artistic product.

What is the Difference Between Forgery and Counterfeiting?

1. Forgery of a trademark means a complete transfer being identical from the unique brand or transferring the main parts
thereof making the forged brand greatly identical to the original one.
2. Counte rfeiting a trademark means making a brand similar in total to the original one in a manner that might mislead the
public in connection with the source of goods that are marked by the brand in question.

Intellectual property refers to creations of the mind: inventions, literary and artistic works, symbols, names, pictures,
models and industrial designs.
Intellectual property is divided into two categories:

 Industrial Property, which includes: inventions (patents), trademarks, industrial designs and models an d
geographic indications of source.
 Copyright, which includes: literary and artistic works, namely novels, poems, plays, films, musicals, cartoons,
paintings, photographs, statues and architectural designs.

Related Rights is a term in copyright law, used t o include the rights of performers in their performances, the rights of
producers of phonograms in their recordings and the rights of broadcasting organizations in the radio and television
programs they air.

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.
2. Explain the changing trends of cyber law.

Answer: Cyber Crime is the most concerned issue in all countries as it is harming confidence in government but also in
people in a daily life transactions.

With the increased usage of digital technology, cyber law experiences various emerging trends. These various trends
include SPAM LAWS, CLOUD COMPUTING AND LAW, SOCIAL MEDIA AND LEADING PROBLEMS, CHALLENGES IN MOBILE
LAWS, LEGAL ISSUES OF CYBER SECURITY, et c.

Our Indian society is not much aware of cybercrime because of lack of proper training and education which results in a
spurt of cybercrime. Sometimes, even the officers of law enforcement are not properly trained to tackle cybercrime.
Most of the cyber threats have a difficult behaviour which causes a delay in understanding and hence difficult to restrict
in early phases of cyber attacks. Such attacks create a serious impact on our Indian society. They cause a threat to
national defence, psychological di sorder, economical disrupt, etc.

India can fight against the problems of cyber crimes by adopting a synergetic approach with a properly trained Human
resource in a tech -savvy society.

3. Differentiate between libel and slander.

Answer: The basic difference between libel and slander is that libel is published defamation, while slander is
fleeting, mostly verbal. In the court of law, both are considered defamation —that is, the communication of a false
statement that harms the reputation of an individual, business, or group. Some countries also have defamation laws
that protect religions; these are usually known as blasphemy laws .

Libel Slander

Definition Defamation (communication of a false Defamation (communication of a false

statement that harms the reputation of an statement that harms the reputation of an
individual, business, product, group, individual, business, product, group,
government, religion, or nation) in printed government, religion, or nation) in spoken
words or pictures. words or gestures.

Form Tangible: Print, writing or pictures. Intangible: Spoken words or gestures.

Burden of On defendant in English law; On plaintiff is On defendant in English law; On plaintiff is

Proof American law. American law.

Cause of A defamatory statement; Published to a th ird A defamatory statement; Published to a third

Action for party; Which the speaker knew or should have party; Which the speaker knew or should have
Suit known was false; That causes injury to the known was false; That causes injury to the
subject of the communication. subject of the communication.

Negation If statement in questions stands to be the If statement in questions stands to be the

truth. truth.

Punishment Generally civil, monetary. Seditious libel – Generally civil, monetary.

crime to criticize public officials

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.
 Libel Slander

Legal No need to prove financial damages No need to prove financial damages

Implications

Famous New York Times vs. Sullivan Food Label Law

Cases

limitation six years two years

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.