Effects of Unethical Practises of Advertising

Prahladarai Dalmia Lions College of Commerce and Economics
EFFECTS OF UNETHICAL PRACTISES OF ADVERTISING
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
MASTER IN COMMERCE
UNDER THE FACULTY OF COMMERCE
SUBMITTED BY
MONISH KUKREJA
UNDER THE GUIDANCE OF
NIRAV TAWADIA
PRAHLADRAI DALMIA LIONS COLLEGE
OF COMMERCE & ECONOMICS
SUNDAR NAGAR, S.V.ROAD, MALAD (WEST)
MUMBAI 400 064
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Effects of Unethical Practises of Advertising
May 2020
Prahladrai Dalmia Lions College of Commerce & Economics
Sunder Nagar, Malad (West), Mumbai, 400 064
ISO 9001:2015 Certified
CERTIFICATE
This is to certify that Ms/Mr. MONISH KUKREJA has worked and duly completed her/his
Project Work for the degree of Master in Commerce under the Faculty of Commerce in the
subject of Accountancy/ Management and her/his project is entitled, “EFFECTS OF
UNETHICAL PRACTISES OF ADVERTISING” under my supervision. I further certify that
the entire work has been done by the learner under the guidance and that no part of it has been
submitted previously for any Degree or Diploma of any University.
It is her / his own work and facts reported by her/ his personal finding and investigations.
Signature
NIRAV TAWADIA
Date of Submission:
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DECLARATION
I the undersigned MONISH KUKREJA here by, declare that the work embodied in this
project work titled “EFFECTS OF UNETHICAL PRACTISES OF ADVERTISING”,
forms my own contribution to the research work carried out under the guidance of NIRAV
TAWADIA is a result of my own research work and his/her not been previously submitted
to my other University for any other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of other, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Signature
(MONISH KUKREJA)
Certified by
NIRAV TAWADIA
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INDEX
Chapter Title Page no.

No.
1 Research Methodology 6
2 Introduction 7
3 History 11
4 What Is Unethical Advertising 16
5 Effects Of Unethical Advertising 22
6 Examples Of Unethical Advertising 25
7 Advertising Standards Council Of India (ASCI) 30
8 Questionnaire 34
10 Bibliography 48
11 Annexure 49
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ACKNOWLEDGEMENT
To list to who all helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channel and fresh dimension and
completion of project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Dr. N.N. Pandey and our Vice-Principal Prof. Subhashini
Naikar for providing the necessary facilities required for completion of this project.
I take this opportunity to thank our Co-Ordinator and Project Guide Prof. Nirav Tawadia for
his moral support and guidance.
I would like to thank my college library for having provided various reference books and
magazines related to my project.
Lastly I would like to thank each and every person directly or indirectly helped me in the
completion of the project, especially my Parents and my peers who supported me through out
of my project.
MONISH KUKREJA
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Effects of Unethical Practices of Advertising
RESEARCH METHODOLOGY
TYPE OF RESEARCH:
The study on “The Effects of Unethical Practises of Advertising” is a descriptive form of

research. The study is based on secondary and primary data. The secondary data is presented by
various articles, books, journals, newspaper articles, internet, etc. The primary data is presented
by preparing a questionnaire through Google form on the topic.
OBJECTIVES OF MY STUDY:
 To understand the history of advertising

 To know what is unethical advertising
 To understand the effects and a few examples of unethical advertising
 To study the work of ASCI
LIMITATIONS OF MY STUDY:
 I had difficulty in covering all the aspects relating to effects of unethical advertising, but
have included the required data.
 I did not have any other source for primary data other than google form.
 I had to work a lot in assembling the statistical data.
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INTRODUCTION
Advertising is one of the most integral parts of a business entity. Organizations all around the
world spend billions of dollars every year to promote their products and advertising is one of the
tools to promote their product globally. As businesses run across border, the role and greatness
of advertising expenditure have expanded thus require a close examination in terms of its roles
and functions. Advertising is a form of communication which is used to persuade a specific
group of people to take some new action. Advertising is considered as a major and important
element for the economic growth of the marketers and different companies in competition
(Ryans, 1996). Advertising is usually a paid form of publicity by some sponsor and reached
through various traditional media such as television, commercial radio advertisement, outdoor
advertising, newspaper, magazine mail or modern media such as blogs, websites and text
messages. Furthermore the developments and technological advancements have turned
advertising to a more pervasive and powerful in its impact and affect (Leiss et al., 1986). Early
advertisers assumed that advertising is very powerful what is said “gets through and strongly
achieves the anticipated and persuasive objectives as “ the early bullet or “internal needle”
models of communication which has given rise to the earliest concept of communication effects,
“who says what to whom through what medium with what effect” Bryant and Zeeman 1944).
The introduction of new technologies has set a new playing field in which advertisers have to be
up to-date with new media such as advertising through web sites and also through mobile
phones. According to the Global Advertising Industry Profile, the global advertising market is
forecasted to have a value of 90.4 billion dollar in 2011, an increase of 28% since 2006
(Datamonitor Plc, Oct 2007). Wells et al., Cannon, and Kotler et al. (2006, p. 5; 1973, p. 11;
1999, p. 674) define modern advertising as “a paid persuasive communication that uses non-
personal mass media-as well as other forms of interactive communication-to reach broad
audiences to connect an identified sponsor with a target audience”. The definition is with the
exception of advertisements that appear in the forms of public service announcements in which
the ad space is donated or allocated without any expense by the media.
This is a shift from the old perception of advertisements in which they come in the forms of
public announcers in the market, sandwich boards, flyers and other methods which are largely
done by the proprietors themselves and these advertisements were sometime free of charge.
Belch and Belch (2004, p. 16) further enhanced the definition by adding that the persuasive
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communication is conducted to promote an organization, product, service, or an idea. Consumers

buying behaviour has always been given so much importance and space in the literature study of
impact of advertising regarding its effectiveness (Ajzen, 2002). Most of the time consumers
buying behaviour is influenced by liking or disliking of consumer towards the advertisement of
the product, advertised (Smith et al., 2002). Likewise, Allen. Et al., (1992) argue that it is
actually the emotional reaction which is developed after the advertising, for the product
advertised, that influences the consumer behaviour. In the words of Gorn, 1982, the consumer
behaviour towards a product is totally depending on advertising, without any assessment of the
quality of the product. Furthermore, Controversies over the impact of advertising on the
consumer’s buying trends and habits has always been present (George, 1989). unethical
advertising, misleading advertisements
Sometimes the advertisers over exaggerate about the product’s benefits in such a tactful manner
that consumer goes psychologically under the pressure of advertising persuasiveness and
intentionally decides to buy the advertised product (Smith et al., 2006). In the point of view of
some people, now most of the consumers avoid the advertisement, because they consider the
advertisement, just annoying and misleading (Bishop, 1997). Advertisements have been attacked
on psychological, sociological, aesthetic and political grounds. From the point of view of a
common lay man, what is the purpose of advertising? Some critics even criticize and consider
advertising very harmful to the collective behaviors of the society (Barbara, J. P 1997). But
defenders of advertising always give a strong argument in its favor that basic aim of advertising
is to sell the products, rather its effects on cultural values of the society (Gold, 1987). In the
ancient days, human used to be self-sufficient. In other words, the plant or hunt for their food.
Furthermore, they will try to find or make things that can satisfy their basic needs. As time goes
by, their self-sufficient production began to show signs of surplus and sometime this surplus
cannot fulfil other necessities. Incidentally, they have to turn to trading to fulfil their needs and
to cash in their production surplus. They began to realize that in trading, they have to compete
with other individuals with the same products, and thus advertising takes its first peek into the
world. All the developments and changes in advertising do not come without a price. Some
scholars argue that advertising can prop up ethical issues (Drumwright, 1993; Indrayana, 2004;
Tinarbuko, 2002; Kunkel, Wilcox, Cantor, Palmer, Linn, & Dowrick, 2004; Aitchison, 2002;
Tanudjaja, 2002).
These ethical issues include women exploitation, subliminal perception, and advertising to
children, deceptive advertising, and other issues which can lead to moral deterioration of the
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society (Shabbir & Thwaites, 2007; Murphy, 1998; Blair, Stephenson, Hill, & Green, 2006). The
fact that potentially unethical advertisements are reaching the marketplace suggested that current
methods of evaluating advertisements may be insufficient for some of today’s controversial or
innovative campaigns (Bush & Bush, 1994). Ethics is one of the branches of philosophy (Zubair,
1987). According to Spence and Heekeren (2005, p. 2), ethics can be defined as “a set of
prescriptive rules, principles, values, and virtues of character that inform and guide interpersonal:
intrapersonal conduct”. Schlegelmilch (1998, pp. 6-7) further argues that ethics is hard to define
due to the fact that it cannot be directly measured and it originates from many influences such as
internal and external environmental influences. Dr H. Hamzah Ya’qub (1985, p. 13) in his book,
Etika Islam: Pembinaan Akhlaqulkarimah, perceives ethics as a body of knowledge that
examines good and bad/right and wrong by observing human behaviours. There are extensive
researches done on business ethics in general (De George, 1987; Tsalikis & Seaton, 2007;
Sabrin, 2002). Researches in business ethics covers all the functions of business thus it also
covers the area of advertising and promotion. Due to the fact that advertising stirs ethical
controversies, numerous studies from different perspectives have been done to understand this
phenomenon (Nebenzahl & Jaffe, 1998; Fam, Waller, & Erdogan, 2004; Waller & Kam, 2000).
There is a general point of view of many societal members, that advertising may have a negative,
unintended or intended influence on consumers’ buying trends (Burr and Burr 1977 and
Verbeke, W. 1992). Actually advertising has a strong potential on changing our social values, as
well our buying behaviours through influencing our cultural values (Schudson, 1984).
Specifically, advertising may lead a consumer to prefer material objects over more morally and
socially oriented alternatives; it may potentially increase, conflict and lead to an unhappier and a
more disappointed person of the society (Goldberg and Gom 1978). While the major aim of
advertising is to give something new, creative and useful to get long term benefits of brand
loyalty and image building of the product and company by establishing an emotional relationship
and persuasion for buying that product. This is also a debatable issue that which kind of impact
of advertising effects the beliefs and collective attitudes of the consumer with respect to the
buying behaviour (Barbara, J. 1997). In the modern times, it’s really, difficult to be successful in
persuasion and to mould or effect the buying behaviour of consumer in this era of tough
competition (Robinson, 1997). With the success of advertising field, now it has been admitted as
a universal factor that advertising plays a very influencing role in the consumers’ behaviours
(Beil & Bridgewater, 1990).
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If the consumers could understand the intention of advertisements, then the potential effect of
advertising may be reduced. As the impact of television advertising allows consumers to use the
cognitive defences, such as to produce counter arguments and reasons (Bruck, A, and Goldberg
1988). Likewise, the recognition of the false psychological impact of advertisements, allows
them to avoid advertisements, break by zapping to some other channel, as it has always been
shown that majority of viewers Zap at least as much during the advertising as they do during
common programs (Heater & Greenberg 1985). For persuading and reaching to the consumer,
advertising is considered the most effective and powerful source (Siropolis, 1997). Hence,
whether or not impact of advertising on consumers buying trends is a very important issue to
investigate, from the consumers or buyers point of view. Furthermore from the advertiser point
of view as it will alter the impact and effectiveness of their advertisements. Likewise George
(1989) stated that controversies over the effects of commercials have always been present.
Advertising is accused of exploiting the feelings and building of personal anxieties, over
emphasizing the material side of life and distortion of human and ethical values in
children. unethical advertising, misleading advertisements
Due to the strong impact of advertising, it is the moral duty of advertisers to practice the code of
ethics, during the promotion of their products. The purpose of advertising should be the guidance
of consumer rather than blackmailing and threatening by pushing forcefully to buy that product.
Proper and effective advertising always help the companies and marketers to improve their brand
image and increase their share in the market (Ninan, 2008). Effective advertising is actually the
other name of persuasion and liking or disliking attitude of consumer towards some particular
product or advertising (Mehta, 2000; Stone et al., 2000). There are a number of factors in
advertising which contribute a lot in changing the consumers’ buying behaviour. Like likeability,
brand image, persuasiveness, celebrity endorsement, information about the product,
entertainment etc.
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HISTORY
Advertising has experienced some major milestones – think the emergence of the printing press
in the 1440s, or the huge impact of television.
Since its very first beginnings, which are thought to date back to steel carvings made by the
ancient Egyptians, advertising has constantly had to adapt and change to suit new mediums and
an increasingly savvy audience.
But there’s been one medium that’s had a bigger impact on advertising than anything before it.
The wonderful World Wide Web.
The internet has revolutionized advertising in the most astounding way. Not only has it changed
the way ads are broadcast, but it’s changed the way consumers act towards them.
Then: Traditional Advertising
Let’s take things back to the pre-internet days. The days when advertising was carried out via
cheesy infomercials on radio, fuzzy old televisions, and billboards. This was the golden era of
advertising, when the whole movement was considered a huge part of society – almost taking on
a cultural status.
The first TV ad popped up on screens in 1941 in America – probably a lot later than you’d
imagine. Before the Brooklyn Dodgers and the Philadelphia Phillies played each other, viewers
saw a brief commercial for Bulova clocks and watches.
Such a small moment set the precedent for the next seventy years.
Back then, adverts were a staunch part of society. Despite the 50s being a tense decade for
America during the Cold War, TV viewers felt optimistic and were beginning to loosen their
purse strings as prosperity began to rise.
Characters were built around products to create a semblance of connection between viewers and
brands (though this idea of a consumer connection didn’t become a priority until later), and
famous faces were brought it to sell everything from washing machines to cigarettes.
Take the Marlborough Man, for example, who became a recognizable cultural figure between the
1960s and 1990s. The aim was to turn filtered cigarettes from a feminine phenomenon to a more
masculine one with the help of rugged cowboys and a stream of moody looking men. Even today
it’s considered one of the best advertisement campaigns of all time.
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On television, products and characters began to go hand and hand. Let’s take cereal as an
example. Think Tony the Tiger and Frosted Flakes, or the Snap, Crackle, and Pop gnomes for
Rice Krispies – both of which are still going strong today.
Despite the different characters and the vastly different selection of products that began to
emerge, ads at this time had one purpose: to sell.
Yes, these characters were central to the ads and played a major part in creating an ad culture for
consumers, but the product was always at the forefront.
It might have seemed like Tony the Tiger or the Marlboro Man were the epicentres of their
aligning ad campaigns, but they simply served as a tool to sell, sell, sell.
Now: Different Motives
Today, the shift in the advertising world has seen the rise of other motives when it comes to
commercials. Rather than the sell mentality, ads are focused on community building and brand
awareness.
The product is no longer the centrepiece.
The solution to the consumer’s problem is, and hey, guess what, the product just so happens to
provide that solution.
Let’s take an example that’s not too dissimilar to the character-led ads of the past. The Dairy
Milk Gorilla ad in 2007 didn’t even show or mention Cadbury – the company it was supposed to
be advertising.
Ad disaster? No, far from it.
The drum-playing gorilla (bashing along to Phil Collins In the Air Tonight and set against a
purple background) got tongues wagging. It got people talking. This wasn’t a brazen attempt to
flog more Cadbury chocolate bars. Instead, it was a strategic move to raise awareness of Cadbury
and to solidify it as a “cool” and “must-have” brand (because why else would everyone be
talking about it?).
The simple nature of the ad leant itself perfectly to spoofs, one key way viewers can interact with
a brand – almost like a back and forth dialogue. To date, there are more than 300 spoofs of the
ad.
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Taking things online, Lowe’s “Fix in Six” home improvement ads filmed through the 6-second
Vine app aren’t overt ads. The genius videos show solutions to DIY problems in six seconds or
less – not only are they fun to watch, but they are also actionable (basically, a dream
combination).
The humorous take on home DIY problems has helped it create a friendly persona for its
consumers, taking it a step away from “advertiser”. “Fix in Six” isn’t overtly linked to Lowe’s
either. There’s no “hey, this is Lowe’s and you need to buy everything in this ad from us” spiel.
This idea of emphasizing a solution to consumer’s problems (like home DIY) instead of on the
product is becoming increasingly common. Brands have to work twice as hard to gain the trust of
consumers in the internet world (which we’ll discuss more in a moment), so advertising has kind
of taken on a two-step process:
Helpful content that provides a solution to a problem.
Consumers likes helpful content and digs deeper to find out more about the brand (therefore
building trust and a connection. Note that the consumer is actively digging to find out more
themselves).
From a Passive to Active Consumer: The Biggest Changes
Our TV experiences are still littered with traditional ads, but the times are quickly a-changing.
More change has happened in the past 20 years in advertising than in the previous 2,000 years,
when ancient Egyptians would etch public notices into steel, right up until the 80s when ads were
a form of culture of sorts.
What has so drastically changed the ad landscape?
We’re living in the ad-blocker age
Audiences are actively choosing not to have to sit through commercials or be bombarded with
ads while they browse the internet.
We only have to look at the rise of apps that stop ads from showing up, and the emergence of
pay-to-stream platforms like Netflix. Yep, people are actively choosing to pay to not have to sit
through ads.
This new trend of saying no to ads is thought to have cost publishers up to $22 billion (yes,
billion) in revenue in 2015 – so it’s not to be taken lightly.
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If this isn’t a hint to advertisers that they need to change tack (if they haven’t already), I don’t
know what is.
Consumers are less trusting of commercials
Millenials are the demographic of the moment, but they’re also the most skeptical when it comes
to ads. This study by Forbes shows that they are extremely picky when it comes to who they will
and won’t listen to.
33% of those surveyed browsed blogs and social media before committing to a purchase to glean
a more “authentic” idea of a product and to get real-life reviews without the mask of an ad.
This is where the idea of solution before product has come into play – brands literally have to
prove themselves before consumers will even consider buying from them.
It’s a far cry from the days of the Marlboro Man, who just had to sit looking moody on a horse
(just imagine what he’d have to do now to build trust).
The rise of user-generated content
In a bid to build trust and get consumers on side, brands are partnering up with the people they
want to purchase from them.
Essentially, consumers have become a part of advertising, rather than a passive onlooker.
The lines between who “needs” who is more blurred than ever, as brands focus more on creating
a community and getting consumers on board to help sell their products (which is why
companies value sites like TripAdvisor so much).
Take GoPro, for example, a hugely popular brand who regularly pumps out user-generated
content for its consumers. Instead of creating ads that simply shout “buy our awesome product”,
they let their customers do the talking.
Or pelicans, in this case:
And then there’s Polaroid, a company who promotes user-generated content using TINT on their
website rather than ads. They encourage consumers to get involved by asking them to carry out
tasks, like “snap a photo with the new Taylor Swift album for a chance to win the Polaroid
22300 camera”.
Why does this work? Because people trust other people, not brands.
The need for loyal followers over one-time buyers

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Which brings me onto the final biggest change.
Because brands are increasingly becoming aware that people trust other people, not brands
(we’re all getting wise to that trick), they’re shifting their focus from one-time buyers to creating
a loyal following.
Why? Because a loyal following sells product all by itself. A group of raving fans is one of the
best advertising tools a company can have – they will shout from the rooftops about a product
without any pushing.
Take Patagonia clothing, for example. Their most famous ad does something that would have
been completely bizarre back in the Marlboro Man days. They actively encourage their buyers to
send back their clothing to get it fixed, rather than buy a brand-new item
Surely this lowers sales? Actually, it serves two very clever purposes.
Firstly, it creates a loyal audience because their primary aim is making sure their customers are
happy – not selling more products.
Secondly, it builds trust.
Think about it logically: if a brand is encouraging you to send back a product if it’s broken,
you’re more likely to think it won’t break, because why the heck would they promise to do that if
they’re selling a shoddy product?
With evidence clearly showing that audiences are doing everything in they can to avoid the
dreaded ad, it’s obvious that they have more power in what they do and don’t choose to buy into.
The evolution of advertising has taken it from the etchings of ancient Egypt, through the
emergence of the printing press, through the golden age of cheesy infomercials and character-led
sales pitches, to today, where ads are quickly being replaced by organic ways to build trust and
community.
Marlboro Man might have been the man of the moment in the 1960s, but what impact would he
have now in a time where delivering solutions comes way, way above the sell, sell, sell
mentality?
Would he fare well with audiences that favour knowledge and authenticity? Who knows: that
would be down to the consumer to decide?
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WHAT IS UNETHICAL ADVERTISING
Advertising, like any legitimate industry out there, is regulated. There are certain practices which
have become outlawed over the years, and we have definitely come a long way from the days of
snake oil salesmen, subliminal ads, and out-and-out lies.
While there are rules that agencies cannot break, they can (and often do) bend them to make their
point.
Unethical vs Illegal Advertising
Being unethical means not adhering to the proper rules of conduct for the industry, and also
lacking moral principles. In everyday life, examples of this include, but are certainly not limited
to: lying to your spouse, exaggerating skills on your resume or gossiping about a friend or family
member.
While these are not examples of good behaviour, you're not really breaking any laws. You're just
relaxing your moral code to get what you want.
The same can be true of a business. For example, a doctor or dentist dating a patient is not
against the law, but it is definitely considered unethical. Or, if a company consistently asks a
salaried employee to work longer than 40 hours week after week, leaving him or her exhausted
and highly stressed, that's unethical.
So, now that we have established where the line is drawn, here are some examples of
how advertisers, marketers, and businesses walk that fine line of unethical, but not illegal,
behaviour.
Cash Advance and Payday Loan Ads
Firms behind these loans are not breaking any laws. However, their advertising preys on low-
income people who are desperately in need of money to pay for food, bills, and other essential
life purchases.
These loans offer quick and easy money but hide the high-interest rates in the small legal print at
the foot of the ad. A typical payday loan comes with an interest rate of between 391 and 521
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percent. Of course, you won’t see that advertised prominently. And that’s both predatory and
ethically bankrupt.
Political Advertising
Once again, political ads do not break any laws. Well, none that can be prosecuted anyway. But
the political ads referred to as “attack ads” paint a very poor picture of the opponent. These ads
are designed to scare people into voting for the politician responsible for the ad, making it seem
like the whole world will come to an end if you elect the wrong person.
Attack ads, while unethical, are proven to work time and again, which is why we're unlikely to
see them disappear anytime soon.
Ads That Promise Unethical Behaviour
Something that also crosses the line is the promotion of behaviour that is immoral or unethical.
An infamous example of this was an athletic shoe ad that appeared to encourage infidelity. The
headline read “Cheat on your girlfriend, not on your workout.” It could quite easily have read “A
workout is like a girlfriend – you never cheat on it.” But the ad agency and the company
apparently thought the other approach was edgier. Maybe, but it's also unethical, and the shoe
company faced some backlash from customers.
You can also add to this list the following: dangerous driving, excessive drinking, unruly or anti-
social behaviours; cruelty to animals; neglect of children.
Using Fear As A Motivator
The old saying “if it bleeds, it leads” does not only apply to television journalism. Advertising
agencies and clients frequently use fear tactics. But, using them without the correct justification
is unethical.
If you are trying to promote something that will save lives, like anti-drinking and driving, anti-
tailgating, the dangers of domestic violence, anti-smoking, or anything else that will do a direct
public good, then fear may be considered a justifiable tactic.
However, some agencies use fear in all the wrong places. For example, telling people just how
horrible their lives will be if they don't have a certain type of insurance or, hinting that without
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this type of alarm on your property, you'll be raided and killed in a home invasion. Ideally, an
advertiser should not scare people into buying anything.
Misleading Claims
Finally, we come to the massive exaggeration of the truth. Kentucky Fried Chicken attempted to
rebrand itself as Kitchen Fresh Chicken to downplay the "fried" in its name. It not only misled
people, it basically promoted fried chicken as health food.
If any advertising makes claims that mislead the public, then it is unethical. Of course, there is
also a line between misleading, and crazy exaggeration. No man has ever really thought that if
you spray your arms with a deodorant you'll be chased down the street by dozens of Victoria's
Secret models. However, if you say your deodorant will keep you fresh and dry for a week, when
in fact it only works for a day, then that's not only misleading but potentially grounds for legal
action.
Every business is in business for the money. People who own businesses are looking for ways to
grow and increase their bottom line, so that they can benefit their owners and shareholders. To
make money, businesses are always looking for the most creative ways to advertise their
products in order to attract customers to them. Advertising is therefore very important to the
success of any business. However, since it is being conducted by humans who are looking out
for their best interests, advertising can be both helpful and harmful. In fact, the line between
ethical vs unethical ads is often blurry and ill-defined. The whole point of staying ethical in your
advertising is all about paying attention to the details and finding where the distinctions lie.
WHAT IS ETHICAL ADVERTISING?
The U.S. Federal Trade Commission defines ethical advertising as truthful, not deceptive, is
backed by evidence, and fair. The FTC requires that advertisers follow those four requirements,
so that they can state that they promote truth in advertising. The concept of a “reasonable
consumer” is used when determining the perspective from which the FTC decides whether an
advertisement fulfills these requirements or not.
Principles of Ethical Advertising

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It may sound a little preposterous, perhaps even impossible, but it is possible to effectively
advertise your products and services without having to tell any lies. Ethical advertising is all
about knowing the truth about your product and respecting that truth. Ethical advertising never
finds ways to stretch the capabilities of a product or conceal the defects of that product.
When you decide to adopt ethical advertising, you want to be as clear about your intentions as
possible. You will not have any hidden agendas, where you look like you’re advertising one type
of thing but end up advertising something entirely different. Neither will you use subliminal
messages to communicate your message, where you will seek to implant certain messages
directly into the subconscious audience.
On the other hand, unethical advertising always seeks to misrepresent the product in some way
or distort the message that is being transmitted to fit some agenda. It will often look for secret
and subversive ways to convince and manipulate the customer into agreeing with the customer
and buying the products.
You Need to Promote Your Product’s Distinction
Ethical advertising will always look for a way to show the difference between the product being
advertised and competing products in the markets. It will be distinguished and shown to be
unique. Any logos present in the product will be unique and very easy to identify. The customer
will always be able to identify the product because the imagery and the overall tone of the
product will not be capable of confusion with other products.
Unethical advertising is quite different. It will seek to make its product look a lot like other
products in the market. Quite often, it will try as hard as possible to show how the product being
advertised is much like the most popular product in that niche. Unethical advertising will
capitalize on confusion. Customers won’t know the difference between the products in the
market because unethical advertising will make them all look the same. They will then buy the
product that was unethically advertised, thinking they were actually buying the alternative
product. In the process, the business that made the unethical advertisement will make an
unethical profit as a result.
You Should be Socially Conscious
Ethical advertising does not try to appeal the most base of human emotions, such as lust, greed,
or fear. Ethical advertising will try its best to be positive in its attitude, as well as optimistic. It
will not pander to controversial stereotypes, such as the ones that revolve around age, religion,
19
gender, or race. There are many hot-button issues that come about as a result of the stereotypes
in these areas and they are best avoided in an advertisement. Ethical advertising will do just that.
UNETHICAL ADVERTISING will be the exact opposite. It will look to manipulate the basest
of human emotions and use that manipulation to prey on unwitting customers. An example is one
where the unethical advertisement preys on human fear. It may make it look like the consumers’
health will be in danger if they do not purchase the product being advertised. It might also look
to prey on lust. So rather than focus on the virtues of the product being advertised, an ethical
advertisement might seek to generate interest by relying on sexual imagery. Unethical
advertisements will also look to use socially unacceptable imagery in order to market products,
such as the description of minorities as incompetent and generally stupid, or the depiction of
women as sexual objects of conquest.
You Should be Environmentally Conscious
Ethical advertising has a deep respect for the environment and the planet within which we live. It
will do its best not to cause any kind of unnecessary harm to the environment.
Ethical advertising will try not to depict a hedonistic lifestyle that is excessive and consumerist
in nature. Such a lifestyle would be solely concerned with the endless acquisition of objects for
their own sake and make it look like there is nothing else to life.
It doesn’t just end at what is depicted in the advertisement. Ethical advertising would also be
created in a way that preserves environmental standards. The components that will be used to
make the advertisement will be recyclable and the creation methods will be non-polluting in
nature. The advertisement will also do its best to avoid the excessive waste of resources.
Unethical ads have no consideration for any of these issues. They will have for no concern for
the environment and will encourage the behavior of destroying the environment in the audience
that watches the advertisement.
The Case for Oversight by the Government
Unethical advertising typically isn’t considered a crime and is more of a moral issue than a legal
one. However, there are situations where the advertisement goes to the extreme. In this case, the
advertisement wilfully deceives the audience into buying the product being advertised. In such
cases, the state or federal consumer protection departments could potentially prosecute the
advertiser. Many states have a law that allows consumers to file complaints levelled against
businesses that advertise their products using unethical advertisements. The U.S. Federal Trade
20
Commission takes of consumer complaints at the federal level. Harsh penalties are assigned to
advertisers who are found guilty of unethical advertising practices.
What Should You Consider?
Don’t toe the line and play on the edge. You might make the public very angry, which will affect
your bottom line. On the other hand, you might be risking prosecution, and you might end up
paying harsh penalties to the government. Instead, strive to promote the truth in your advertising.
Of course, there’s nothing wrong with trying to emphasize the strengths of your service or
product. However, whatever you do, do not lie. If you’re going to make a claim about your
product or service, make sure you can back up your claim with irrefutable evidence. Also, you
should not leave out any vital information that's relevant to why the consumer should consider
about buying the product. Leaving out necessary information is committing a lie by omission.
21
EFFECTS OF UNETHICAL ADVERTISING
It might be tempting to deceive in your advertisements not only so that you could attract new
customers but also so that they might buy your products and subscribe to your services.
However, usually, this strategy is bad for the future of your company, and it might possibly
hinder your business' success. Companies whose only goal is to rack up as many profits as
possible, tend to use advertisements that may conceal some costs, omit important facts, or use
misleading images, in a bid to get customers to buy a service or product. This kind of marketing
isn’t helpful, and it will deprive consumers of the accurate information they need to make good,
well-informed decisions. The harmful effects of such advertising affect multiple players in the
business world, and are not helpful at all.
The Effects of Unethical Advertisements on the Consumer
The effects of unethical advertising on consumers is perhaps the worst aspect about this kind of
advertising. The consumer ends up making uninformed decisions. If you don’t tell your
customers the truth or paint a picture for them with your ad that overshadows or contradicts the
truth about your product or service, then they will make poor decisions concerning those
products and services.
Your customers will end up wasting valuable money on something, which ultimately, really
won’t meet their needs or solve their problems; ultimately, your customers might use the product
without knowing the negative side effects that come with the product.
When you use such harmful advertisements for your products, you are wreaking havoc for your
customers, who will not be happy in the long run.
Typically, such deceptive ads have guarantees that hide the fine print, which may contradict
what the product or service actually provides. These ads may offer you false warranties, which
the companies will shirk when you try to make a claim. They may also try to conceal hidden
costs and serious health risks that come with the advertised product or service. In advertising,
hiding facts ultimately will come back to bite consumers when the consumers become aware of
them.
The Effects of Unethical Advertisements on the Business
Another effect of misleading advertisements is that of the effects on the business itself. When a
business creates a false statement, then usually, that business doesn’t see that the advertising will
22
end up as a harm. After all, the only person who could possibly be duped by such an
advertisement is the consumer, right?
The truth is that deceptive advertising can be fatal to those businesses that use deceptive
advertising.
Your consumers do not take kindly to being lied to. As soon as they find out that you’ve been
lying to them, they will retaliate against you. For starters, you shouldn’t expect them to fall for
the same trick twice. They may also become angry after they realize that you've tricked them;
they will spread negative stories about your company, via word of mouth or on social media.
When the worst comes to the worst, the consumer will likely sue your company for damages,
which may cause the the business to incur hefty litigation costs later on.
The Federal Trade Commission sets the standards in advertising that companies should follow,
so that these companies do not mislead the public. There are actually a few effects that can be
expanded upon as far as a business is concerned that should, at the very least, discourage you
from ever relying on this kind of advertising:
You Could Be Investigated
If your advertising campaign is suspected of being misleading, the Federal Trade Commission,
or FTC, could investigate your ad to see if it is in violation of any laws. The FTC will take the
perspective of a consumer and figure out if the claims, both explicit and implicit, in the ad are
falsified. They will also evaluate any information that you leave out of your ad to see if it was
material and should, therefore, have been included.
You Could Receive a Cease and Desist Order
You may receive a cease and desist order from the FTC to stop running your false advertisement.
In order to be allowed to run it again, you will have to bring it up to FTC standards. This may
mean correcting any false information you put in and adding information that had been
previously been omitted. You may also have to inform people who bought your products or
services that you used falsification in your ad and include disclaimers in future ads.
You Could Incur Financial Loss
If your company is caught advertising falsely, you could end up losing a lot of money. If you are
forced to pull your ad, you will lose all of the money that you spent developing that ad. You may
also be charged a fine by the FTC for the false advertising. Sometimes the fine may be both for
23
current deceptive practices as well as any future practices. If you’re sued, then you have to deal
with legal fees and settlement money in case you lose the case.
You Could Lose the Trust of Your Customers
When you engage in false advertising, your consumers will perceive you as untrustworthy. Both
the customers you already have and any potential new customers will tend to feel like you
betrayed them and take their business elsewhere. Your customers won’t be loyal anymore and
that will ruin your business. Your brand may also get a negative reputation, which means your
future business prospects are reduced.
The Effects of Unethical Advertisements on Employees
Your employees are on the front line, and usually they will bear the brunt of the consequences
that come with false advertising. In such cases, they usually find themselves between a rock and
a hard place - the rock being the consumer - and the hard place, the deceptive advertisement.
One thing to note is that the employees usually aren’t guilty since they neither create the ads nor
endorse them. However, when consumers get angry because they feel duped by an
advertisement, they don’t care. Your employees will have to deal with unhappy people and will
end up unhappy themselves in the process. They may even be blamed when your product
malfunctions or your service does not deliver what you promised it would.
Customers will direct their anger at your employees when your employees are unable to live up
the unrealistic expectations that were generated by misleading ads. When the employees are
subjected to such terrible conditions, the turnover of the company is likely to rise since they will
leave. Even if they stay, they may not be motivated to work hard and the company will only
experience even more problems.
The Effect on the Perception of Competition
This is one of the worst effects that come with false advertising. When companies have healthy
competition between them, they tend to improve their products and services and lower the costs
that they pass on to the consumer. This can improve the entire industry over the long run since
innovation is encouraged. Companies are forced by competition to get creative and to spend
money on research and development to improve their products and services. However, when a
competitor spends their money on making misleading advertisements, make attractive but false
24
claims about their products, then your company may also end up investing in the same, rather
than investing in innovation. The result is industry-wide damage.
EXAMPLES OF UNETHICAL ADVERTISING
Advertisements are basically marketing messages, meant for promoting a service, product or
idea in the most creative manner. However, sometimes, the makers of these advertisements take
creative liberty a tad too much, which invokes anger, and controversy all around.
Here are 5 such controversial advertisements in India, and related to Indians which were
slammed for various issues – Be it a political party or condoms.
No, we are not demeaning these advertisements, as India is a free country, and freedom of
expression must be protected. However, we have mentioned these ads, as they made some big
news, and maybe, became successful due to that.
We will leave it to you to decides whether such advertisements should be ‘allowed’ or not!
Zomato’s Not-So-Subtle Way of Selling Food
In the month of November, Zomato’s art director Akshar Pathak decided to use some interesting,
not-so-subtle way to sell food via their platform; and received immediate backlash.
25
Zomato used some Hindi expletives, MC and BC, and converted them to food names like Mac-n-
Cheese and Butter Chicken.
Suhel Seth, a leading name on branding and marketing tweeted:
“Shame on you @ZomatoIN ! Absolutely shameful what you’ve attempted to do. Your investors
should be sickened by your behaviour! @smritiirani : this is outrageous. @ascionline”
Zomato was forced to withdraw the advertisement and apologize as well.
Sunny Leone Selling Condoms Using Navratri
When Sunny Leone, the most searched Indian celebrity, decided to feature in an advertisement
for condoms during Navratri, that too in Gujarat, then controversy was bound to erupt. And such
was the intensity of the opposition, that The Confederation of All India Traders accused her of
irresponsible and going to “any level irrespective of the pious and religious occasion of
Navratri” to earn money.
The advertisement read
“Aa Navratrie ramo parantu prem thi (This Navratri, play, but with love).”
The makers of the condom, Manforce Pharma had to issue an apology and decided to
withdraw the ad.
26
Jawed Habib’s Using Gods to Sell Services
During the Durga Puja, Jawed Habib decided to use Gods to sell their services of hair & beauty
salon. The advertisement showed Lord Durga, Ganesh, Karthik, Lakshmi and Saraswati relaxing
and enjoying a spa day in a Jawed Habib salon, with the tagline:
“Gods too visit JH salon.”

Immediately, the advertisement received tremendous backlash, and such was the heat generated
that Jawed Habib had to issue an apology.
27
Meat and Livestock Australia’s (MLA) Insults Lord Ganesha
This was not basically an Indian advertisement but used Lord Ganesha for their propaganda.
Meat and Livestock Australia’s (MLA) decided to showcase Lord Ganesha eating a lamb. The
theme of the advertisement titled “You Never Lamb Alone”, was that no matter what is your
faith and belief, everyone loves to eat lamb. The ad features Jesus, Moses, Aphrodite, Buddha,
Ganesha, Zeus, Obi-Wan Kenobi, and Ron Hubbard, the founder of Scientology. Prophet
Mohammed calls in to inform that he can’t make it.
The advertisement offended Hindus all over the world, and such was the controversy that High
Commission of India had to make a “démarche” to the Department of Foreign Affairs and Trade,
the Department of Communication and Arts and the Department of Agriculture over the
“insensitive” ad. The advertisement is not available in India but is still running in Australia,
which you can watch he re.
28
BJP’s Gujarat Election Campaign
During the recently concluded Gujarat elections, BJP decided to release an advertisement, in
which current Congress President Rahul Gandhi was termed as ‘Pappu’, which means a fool or
simpleton. Pappu is a term which trolls use on social media to describe Rahul Gandhi, but it was
for the first time that the term was used in an official advertisement.
Election Commission took action against this ad and ordered BJP to withdraw it.
Later, the term Pappu was replaced with Congress.
Did we miss any other controversial ad? Do let us know by commenting right here!
29
ADVERTISING STANDARDS COUNCIL of INDIA (ASCI)
"The Advertising Standards Council of India (ASCI)", established in 1985, is a self-

regulatory voluntary organization of the advertising industry in India. It is a non-Government
body. ASCI is committed to the cause of self- regulation in advertising ensuring the protection of
the interest of consumers. ASCI seeks to ensure that advertisements conform to its Code for Self-
Regulation, which requires advertisements to be legal, decent, honest and truthful and not
hazardous or harmful while observing fairness in competition. ASCI looks into complaints
across ALL MEDIA such as Print, TV, Radio, hoardings, SMS, Emailers, Internet / web-site,
product packaging, brochures, promotional material and point of sale material etc. ASCI’s role
has been acclaimed by various Government bodies including The Department of Consumer
Affairs (DoCA), Food Safety and Standards Authority of India (FSSAI), Ministry of AYUSH as
well as the Ministry of Information and Broadcasting. The association with these Government
bodies is to co-regulate and curb misleading and objectionable advertisements in the respective
sectors. In January 2017, the Supreme Court of India in its judgement has also affirmed and
recognized the self-regulatory mechanism as an effective pre-emptive step to statutory provisions
in the sphere of advertising content regulation for TV and Radio in India. ASCI is a part of the
Executive Committee of International Council on Ad Self-Regulation (ICAS). Among several
awards bestowed by the European Advertising Standards Alliance (EASA), ASCI bagged two
Gold Global Best Practice Awards for the Mobile App "ASCI online" (2016) and for reducing
the time taken to process complaints (2013).
30
“Celebrities must ensure claims in advertisements not misleading: ASCI” - Economic

Times
NEW DELHI: Celebrities from the fields of entertainment and sports endorsing products will
have to do due diligence to ensure that claims made in advertisements featuring them do not
mislead people, as per draft guidelines by ASCI.
The Advertising Standards Council of India (ASCI) in its guidelines for celebrities in
advertising, however, did not include business leaders, religious leaders, politicians, government
functionaries, bureaucrats and other well-known personalities like doctor, authors, activists and
educationists in the definition of brand ambassadors.
"Celebrities for the purpose of this guideline are those people who are from the field of
entertainment and sports," it said.
Advertisements featuring celebrities need to doubly ensure that claims made in it are not
misleading, false or unsubstantiated so as not to harm the interests of the consumers, especially
for products or services which can cause serious financial and physical loss, the draft guidelines
said.
Putting the onus on celebrities, it added: "Celebrity should do due diligence to ensure that all
description, claims and comparisons made in the advertisements they appear in or endorse are
capable of being objectively ascertained and capable of substantiation and should not mislead or
appear deceptive."
All such ads endorsed by celebrities should ensure it does not violate any of the ASCI code in
letter and spirit and the advertiser and the ad agency should make sure about it
"Celebrities are expected to have adequate knowledge of these codes and it is the duty of the
advertiser and the agency to make sure that the celebrity they wish to engage with is made aware
of them," the draft guidelines said.
31
Moreover, testimonials, endorsements or representations of opinions or preference of celebrities

must reflect genuine, reasonably current opinion of the individuals making such representations,
and must be based upon adequate information about or experience with the product or service
being advertised.
“ASCI pulls up HUL, Dabur, Uber, others for misleading ads” – Economic Times
NEW DELHI: Advertising sector watchdog ASCI has upheld complaints against 200 misleading
advertisements in October, including those of HULNSE 4.89 %, Dabur NSE 1.11 % India, Uber
India, Hindustan Petroleum, Usha International and Indian Oil Corp.
The Customer Complaints Council (CCC) of Advertising Standards Council of India (ASCI)
received 319 complaints during the month.
It upheld 82 in healthcare category, 75 in education, 11 in personal care, eight to the food and
beverages category and 24 from other categories.
The CCC found that the claims of Hindustan Unilever Ltd (HUL) for its lever ayush soap saying
'based on 5,000-year-old Ayurveda scriptures with 15 ayurvedic herbs' besides other claims were
inadequately substantiated and are misleading.
Furthermore, the ASCI said HUL did not submit any evidence that the celebrity is in agreement
with the claims being made in the advertisement in general.
"The visual of the celebrity (Akshay Kumar) when seen in conjunction with the claims are likely
to mislead consumers regarding the product efficacy and contravened ASCI's guidelines for
celebrities in advertising," ASCI said.
Similarly, Dabur India was pulled up for its advertisement of Dabur lal tel which claimed 'Dugni
tezi se sharirik vikas'. The ad regulator said the claim was valid for babies up to six months of
32
age and there was a discrepancy in the ad as it showed the baby getting up and walking towards
the mother indicating the age to be more than six months.
Cab aggregator Uber India's advertisement claim which said 'save Rs 500 on your next 10 Uber
rides and ride Uber and the discount will auto apply', were found misleading by ASCI.
"The advertisement claims were misleading by omission of validity of the promotion period, and
that the offer is subject to terms and conditions," ASCI said.
For Hindustan Petroleum Corp advertisement, the regulator said the visual of a rider and pillion
rider on a two-wheeler without helmet as depicted in the advertisement shows violation of traffic
rules and is an unsafe practice.
Indian Oil Corp was also pulled up for its servo oil advertisement claim 'India's largest selling
trusted lubricants'
ASCI said it was not substantiated with verifiable comparative data of the advertiser's product
and other competitive products, or with a market sales data, or through a third party validation.
Usha International ad claim for its Usha Honeywell evaporative air cooler which said 'cools up to
80 square metres', was found inadequately substantiated under test conditions and misleading by
exaggeration.
33
QUESTIONNAIRE
A survey was done on the topic ‘Effects of Unethical Advertising’ by creating Google Forms. A
few questions were asked regarding unethical advertisements. A total of 50 responses were
received. The respondents had provided the answers and comments to the questions in the form.
Below are the questions asked
Data Interpretation:
68% of total that is 34 out of 50 respondents belong to the age group of 20 – 23
The responses from the age group of 24 – 27 is 26% that is 13 responses
6% of respondents belong to the age of 16 – 19.
There were no any responses from the age group of 28 and above
34
Out of the total 50 responses 37 that is 74% responses were males
26% respondents that is 13 responses were from females.
35
Inference:
According to a research by Yankelovich, Inc. the average modern person is exposed to around
5000 ads per day. But according to our survey, an average person comes across 4000 ads per day
According to our audience 60% that is 30 respondents are exposed to 2000 – 4000 ads per day
28% of the respondents come across 4000 – 6000 ads per day that is 14 respondents
6 responses belong to the people who come across 6000 – 8000 ads per day
There were not responses from the people who watch 8000 and above ads per day
36
Inference:
According to the survey it was inferred that most people are likely to trust the ads that they come
across
5 respondents feel that they are least likely to trust the advertisements.
18% respondents (9 people) feel that they are less likely to trust the advertisements
14 respondents thar is 14 people are neutral at trusting the ads. This is the responses that is
given by most of the respondents.
Followed by that at number 4 who are more likely to trust the advertisements are 13 respondents
Respondents to most likely to trust the advertisements are 18% out of the total
37
Inference:
At times, the viewer doesn’t realise that they are being exposed to an unethical or a misleading
advertisement.
Out of our 50 respondents, 36 people, which is 72% of the total respondents have some amount
of knowledge regarding these ads.
20% have no idea that they are being exposed to such ads on different media platforms which are
10 respondents out of 50 respondents.
4 respondents (8% of our total respondents) are not sure regarding their awareness of such ads.
38
Inference:
Almost half of the people believe that they have come across unethical advertises
25 respondents i.e. half of our total respondents are not sure if they ever came across any
unethical/misleading advertisement.
Out of the remaining, 44% of our total respondents i.e. 22 out of 50 respondents say that they
have seen such ads before.
Only 6% believe that they are not sure whether they have been exposed to such ads before
which is just 3 respondents out of the total.
39
Responses:
RIN
Nutella “Good for you”
Regarding jobs
Complain
The advertisement text states 'The amazing iPhone 7 is here', but shows an image of iPhone 7
Plus variant, which is misleading by ambiguity and implication
Closeup toothpaste
Reckitt Benckiser Healthcare India’s Dettol claims, in its ad, that ‘Only Dettol gives 10x more
protection against germs.’ This was found to be misleading as the soap, which contains
germicidal actives was compared to products which does not have germicidal actives. The
claim was not substantiated by comparing it with products which have germicidal actives.
Amul butter
Mobikwik E- wallet
Red Bull said it could "give you wings."
Diet Coke
Bharti Airtel
The Advertising Standards Council of India (ASCI) recently ordered Airtel to withdraw its 4G
fastest internet challenge ad on the grounds that it was ‘misleading’.
An ad released by Dabur, which claimed that Dabur Chyawanprash gave children three times
more immunity and power to fight diseases, was slammed by the ASCI for making claims that
are unsubstantiated.
Horlicks: The health drink brand has been claiming to make children taller, stronger and
sharper in all its ads. A complaint was filed against Horlicks for one of its ads which said that
Horlicks improves concentration, and thus can help students score better during exams. The
complaint stated that there was no proof that the health drink had the potential to do this, and
40
by targeting the exam season, the company was using people’s apprehensions to sell their
product.
Beauty Products (Fair and lovely)
Inference and Data Interpretation:
There are various ways of advertising in an unethical manner which involves hidden terms and
conditions, degrading competitors, playing with words, using fear as a motivator and false
claims.
Out of our 50 respondents, 82%. i.e. 41 respondents voted for hidden terms and conditions to be
the most unethical way of advertisement.
Followed by false claims as 80% of our total respondents (40 respondents) believe that making
false claims isn’t an ethical way of advertisement.
As basic as it may sound to an advertiser, playing with words is also an unethical means
according to 68% of our total respondents i.e. 34 respondents.
32% of our total respondents i.e. 16 respondents voted for using the fear factor as an unethical
way of advertising.
And only 26% i.e. 13 respondents voted for degrading the rivalry brand as an unethical means of
advertisement.
41
Inference:
Due to awareness about advertisements, people are very less likely to fall prey of false or
unethical ads.
Data Interpretation
60% of our total respondents which are 30 respondents out of 50 have not fallen for such ads.
14 respondents (28% of total respondents) have fallen for such ads.
6 respondents i.e. 12% are not sure whether they have fallen or not.
42
Response:
Return the product back

Compliment in company about the product
Complaint about product to company
Didn't buy that product again
No such action i tooked
No action taken
Return the product back to the company
I complaint to MobikwikE- Wallet about fraud they did with me.
I don't remember.
No
File case against Bharti Airtel company in Court
No comments
Did complaint in store
43
Inference:
Use os Unethical Advertising may give you a positive outcome in a short course but it might
affect businesses in a longer duration.
Data Interpretation
42% people believe that unethical advertising is a long term damage i.e. 21 respondents.
24% are sure about a long term damage of use of unethical practise of advertising
22% feel that use of unethical use of advertising sometimes has a long term damage.
8% that is 4 respondents feel that there is no damage in use of unethical advertising
44
Inference:
As a marketer it is very less likely to use unethical ways of marketing or advertising the product
because it may give you required results in short duration but has long term damage
76% of our total respondents, which is 38 respondents out of 50, will never use unethical means
of advertisement for success.
On the other hand, the remaining 24%, 12 respondents won’t hesitate to use an unethical way for
achieving their goals faster.
45
Response:
We aware to other people those who don't about the product

Improve economy and Provide revenue to Company
Revenue to government
1)Reach of Target. 2)Brand Awareness. 3)Rise in Profits. 4)Growth in Business for a Short
Term.
Generate Fast income
Increase in production of good and better quality of good at lower price
None
It promotes healthy competition between brands
Positive effect of unethical advertising get advantage to the company
Better quality products at lower prices
Earn lot of money
To attract customers towards that particular advertisement.
Less competition
No comments
Ethical advertising dont have any positive effect according to me.
It give benifit to economy and it improve cooperate image of firm
They helps us to grow
No positive effects
Social changes like accepting women as equals, empowerment of women, concern for the girl
child and curbs on female infanticide, developing public opinion against child labor, etc., are
created through advertisements only.
Easy to Attract loyal customer
Faster sale in a short term
Lower competition
46
Inference:
Most of the people were aware about ASCI, an authority that regulates the advertisement time to
time and take strict action against the brands and the company.
Data Interpretation
56% of our respondents. i.e. 28 respondents are aware of the Advertising Standards Council of
India (ASCI).
16 respondents (32%) lacked knowledge regarding ASCI.
12% i.e. 6 respondents are not sure.
47
BIBLIOGRAPHY
https://www.thebalancecareers.com/what-is-unethical-advertising-38797
https://trak.in/tags/business/2017/12/28/controversial-advertisements-india-2017/
https://economictimes.indiatimes.com/industry/services/advertising/asci-pulls-up-hul-dabur-
uber-others-for-misleading-ads/articleshow/62283278.cms?from=mdr
https://economictimes.indiatimes.com/industry/services/advertising/celebrities-must-ensure-
claims-in-advertisements-not-misleading-asci/articleshow/56088028.cms
https://smallbusiness.chron.com/difference-between-unethical-ethical-advertising-19262.html
https://researchleap.com/impact-of-unethical-advertising-misleading-information-or-deceptive-
advertising-on-customer-purchasing-intention-with-mediating-effect-of-word-of-mouth-case-of-
pakistan/
https://accountlearning.com/unethical-advertising-forms-effects-improve/
48
ANNEXURE
Effects of Unethical Advertising

Unethical advertising is not following the moral principles and values that govern the actions
and decisions of an individual or group. This unethical way is the decision of marketer in
advertising to increase sales of the product and not following the industry guidelines.
* Required
1. Name *
Your answer
2. Age *
 16 - 19
 20 - 23
 24 - 27
 28 and above
3. Gender *
 Male
 Female
4. The average number of advertisements you come across in a day *
 2000 - 4000
 4000 - 6000
 6000 - 8000
 8000 and more
49
5. How likely are you to trust the advertisements that you come across? *
Least Likely
 1
 2
 3
 4
 5
Most Likely
6. Are you aware of unethical/misleading advertisements? *
 Yes
 No
 Maybe
7. Have you ever come across any unethical/misleading advertisements? *
 Yes
 No
 Maybe
8. If yes, which one?
Your answer
50
9. Which way of advertising is the most unethical, according to you *
 Hidden terms and conditions

 Degrading rivalry brand
 Playing with the words
 Using fear as a motivator
 False claims
 Other:
10. Have you ever fallen prey to any unethical advertisement? *
 Yes
 No
 Maybe
11. If yes, what action did you?
Your answer
12. Do you think using the unethical way of advertising has long term damage *
 Yes
 No
 Always
 Sometimes
 Maybe
51
13. As a marketer, would you use unethical way to get the work done for faster results *
 At times
 Never
14. What according to you are positive effects of unethical advertising?
Your answer
15. Are you aware of the Advertising Standards Council of India (ASCI)? *
 Yes
 No
 Maybe
Thank you!
52

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Prahladarai Dalmia Lions College of Commerce and Economics

EFFECTS OF UNETHICAL PRACTISES OF ADVERTISING

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF

UNDER THE FACULTY OF COMMERCE

UNDER THE GUIDANCE OF

PRAHLADRAI DALMIA LIONS COLLEGE

OF COMMERCE & ECONOMICS

SUNDAR NAGAR, S.V.ROAD, MALAD (WEST)

MUMBAI 400 064

Chapter Title Page no.

The study on “The Effects of Unethical Practises of Advertising” is a descriptive form of

 To understand the history of advertising

 To study the work of ASCI

communication is conducted to promote an organization, product, service, or an idea. Consumers

The wonderful World Wide Web.

Then: Traditional Advertising

Now: Different Motives

The product is no longer the centrepiece.

Ad disaster? No, far from it.

Helpful content that provides a solution to a problem.

From a Passive to Active Consumer: The Biggest Changes

What has so drastically changed the ad landscape?

We’re living in the ad-blocker age

Consumers are less trusting of commercials

The rise of user-generated content

Or pelicans, in this case:

The need for loyal followers over one-time buyers

Which brings me onto the final biggest change.

Secondly, it builds trust.

WHAT IS UNETHICAL ADVERTISING

Unethical vs Illegal Advertising

Cash Advance and Payday Loan Ads

Ads That Promise Unethical Behaviour

Using Fear As A Motivator

WHAT IS ETHICAL ADVERTISING?

Principles of Ethical Advertising

You Need to Promote Your Product’s Distinction

You Should be Socially Conscious

You Should be Environmentally Conscious

The Case for Oversight by the Government

What Should You Consider?

EFFECTS OF UNETHICAL ADVERTISING

The Effects of Unethical Advertisements on the Consumer

The Effects of Unethical Advertisements on the Business

You Could Be Investigated

You Could Receive a Cease and Desist Order

You Could Incur Financial Loss

You Could Lose the Trust of Your Customers

The Effects of Unethical Advertisements on Employees

The Effect on the Perception of Competition

EXAMPLES OF UNETHICAL ADVERTISING

Zomato’s Not-So-Subtle Way of Selling Food

Suhel Seth, a leading name on branding and marketing tweeted:

Sunny Leone Selling Condoms Using Navratri

The advertisement read

Jawed Habib’s Using Gods to Sell Services

“Gods too visit JH salon.”

Meat and Livestock Australia’s (MLA) Insults Lord Ganesha

BJP’s Gujarat Election Campaign

Later, the term Pappu was replaced with Congress.

ADVERTISING STANDARDS COUNCIL of INDIA (ASCI)

"The Advertising Standards Council of India (ASCI)", established in 1985, is a self-

“Celebrities must ensure claims in advertisements not misleading: ASCI” - Economic