Ethical and Legal Aspects of Marketing

What is Marketing Ethics?

• Marketing ethics serve as moral principles and values that should be followed
during marketing communication.
• They are the guidelines that let companies decide about their new marketing
strategies. But also keep in mind that it depends on one’s judgment of ‘right’ and
‘wrong.’
• Any unethical behavior is not necessarily unlawful.
• For example, if a company makes any claims about its products and cannot live up
to those claims, it may be called unethical behavior.
Marketing ethics fosters fairness and honesty in all their advertisements.
• Any fraudulent claims to the customers, interfering on consumers’ privacy,
stereotyping, and targeting the vulnerable audience (like children and elderly) is
deemed unethical.
The Five Dos Of Ethical Marketing
Be Transparent : Whenever you are marketing a product or service to
customers,
Protect Consumer Data And Privacy: Consumers are becoming
increasingly concerned about entrusting their personal data with
companies.
Commit To Sustainability And Human Rights: Be honest about your
ingredients, product components, and your supply chain.
Respond Meaningfully to Consumer Concerns: Always seek to
protect consumer rights and immediately investigate any complaint.

Maximize Benefits And Minimize Risks: Every ethical marketing

strategy should try to benefit as many people as possible while creating as
little harm or cost as possible.
Making an overall and lasting positive impact should always be the aim.
 The Five Don’ts of Ethical Marketing

Exaggeration – Some advertisers use false claims about a product’s quality or popularity. A
Slogan like “get coverage everywhere on earth” advertises features that cannot be delivered.
Surrogate Advertising – In certain places there are laws against advertising products like
cigarettes or alcohol. Surrogate advertising finds ways to remind consumers of these products
without referencing them directly.
Puffery – When an advertiser relies on subjective rather than objective claims, they are puffing up
their products. Statements like “the best tasting coffee” cannot be confirmed objectively.
Unverified Claims – Many products promise to deliver results without providing any scientific
evidence. Shampoo commercials that promise stronger, shinier hair do so without telling
consumers
Stereotypingwhy or how.
Women – Women in advertising have often been portrayed as sex objects or domestic
servants. This type of advertising traffics in negative stereotypes and contributes to a sexist
culture.
Children in advertising – Children consume huge amounts of advertising without being able to
evaluate it objectively. Exploiting this innocence is one of the most common unethical marketing
Legal Aspects of Marketing
Products and services that may not be advertised are the following:
• Tobacco, under the Cigarettes and other Tobacco Products Act;
• Alcoholic beverages, under the Cable Television Network (Regulation) Amendment Bill;
• Human organs, under the Transplantation of Human Organs Act 1994;
• Magical remedies, under the Drugs and Magical Remedies (Objectionable
Advertisements) Act 1954;
• For prenatal determination of sex, under the Pre-Natal Diagnostic Techniques (Regulation
and Prevention of Misuse) Act 1994;
• Prize chits and money circulation schemes, under the Prize Chits and Money Circulation
Schemes (Banning) Act 1978;
• Physicians, under the Indian Medical Council (Professional Conduct, Etiquette and
Ethics) Regulations; and
• Legal services, under the Bar Council of India Rules, formulated under the Advocates
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