Unlike deception, the definition of unfairness in advertising has been left relatively vague until recently. Yet, there was a congress that ended a dispute by
approving legislation that defines unfair advertising as “acts or practices that cause or are likely to cause substantial injury to consumers, which is not
reasonably avoidable by consumers themselves, and not outweighed by the countervailing benefits to consumers or competition” O’Guinn, Allen, Semenik,
2003: 131. This definition obligates the Federal Trade Commission FTC to assess both the benefits and costs of advertising, and rules out reckless acts on the
part of consumers, before a judgment can be rendered that an advertiser has been unfair.
b. Competitive Issues
Because the large money amounts spent on advertising may foster inequities that literally can destroy competition, several advertising practices
relating to competition can result in regulation. Among them are cooperative advertising, comparison advertising, and using monopoly power. Vertical
cooperative advertising is “an advertising technique whereby a manufacturer and dealer either a wholesaler or retailer share the expense of advertising” O’Guinn,
Allen, Semenik, 2003: 131. Comparison advertisements are those in which an advertiser makes a
comparison between the firm’s brand and competitors’ brand. There are certain guidelines for comparative advertising. The first guideline is the intent and
connotation of the ad should be to inform and never to discredit or unfairly attack competitors. Second, when a competitive product is named, it should be one that
exists in the marketplace as significant competition. Third, the competition should be fairly and properly identified, but never in a manner or tone of voice that
degrades the competitive product or service. Fourth, the advertising should compare related or similar properties or ingredients of the product, dimension to
dimension, feature to feature. Fifth, the identification should be for honest comparison purposes and not simply to upgrade by association. Sixth, if a
competitive test is conducted, it should be done by an objective testing source, preferably an independent one, so that there will be no doubt as to the veracity of
the test. Seventh, in all cases, the test should be supportive of all claims made in the advertising based on the test. Eighth, the advertising should never use partial
results or stress insignificant differences to cause the consumer to draw an improper conclusion. Ninth, the property being compared should be significant in
terms of value or usefulness of the product to the consumer. And the last, comparatives delivered through the use of testimonials should not imply that the
testimonial is more than one individual’s thought unless that individual represents a sample of the majority viewpoint.
Finally, some firms are so powerful in their use of advertising that monopoly power by the virtue of the advertising can be come a problem. This
issue normally arises in the context of mergers and acquisitions.
c. Advertising to Children
Critics argue that continually bombarding children with persuasive stimuli can alter their motivation and behavior. Thus, some guidelines are made for
advertising directed at children. These guidelines emphasize that advertisers PLAGIAT MERUPAKAN TINDAKAN TIDAK TERPUJI
