Advertising Prohibitions

1
(No Transcript)
2
(No Transcript)
3
(No Transcript)
4
(No Transcript)
5
Regulatory Prohibitions

• Regulations of
• Federal Trade Commission
• Food and Drug Administration
• Federal Communication Commission
• State and Local entities

6
Regulatory Prohibitions - FTC

• Federal -- FTC
• Deception in advertising
• Corrective advertising
• Listerine will not help prevent colds or sore
  throats or lessen their severity
• Advertising substantiation
• Agencies must have concrete evidence before
  disseminating product performance claims
• Lite
• Organic
• Natural

7
Regulatory Prohibitions - FTC

• Deception Acts that cause or are likely to
  cause substantial injury to consumers, which is
  not reasonable avoidable by consumers themselves
• Listerine
• Misappropriation
• Tootsie Roll vs. Tushie Roll

8
4 recent FCC Cases

• Four separate cases
• Xenadrine EFX
• CortiSlim
• TrimSpa
• One-a-Day Weight Smart
• false and unsubstantiated advertising claims
• Companies have
• Paid 25million in fines
• Agreed to limit advertising claims in the future

9
Xenadrine EFX
10
Xenadrine EFX

• Xenadrine EFX
• Will pay 8 12.8 million
• Made claims that could not be scientifically
  proven
• CLAIMS clinically proven to cause rapid and
  substantial weight loss and to be more effective
  than ephedrine-based products
• CLAIMS testimonials claimed lost weight with
  only the product

11
What was wrong with the advertising?

• MISREPRESENTATION
• What scientific studies showed
• Experimental group taking Xenadrine lost 1.5
  pounds in 10 weeks
• A control group with a placebo lost 2.5 pounds in
  10 weeks
• Testimonials
• Were paid 1,000 - 20,000
• Used a combination of diet and exercise
• Ads didnt disclose this information

12
CortiSlim Headline Is stress making you fat?
13
CortiSlim and CortiStress

• CortiSlim and CortiStress
• Will pay 12 million
• National ads on broadcast and cable TV, print
  internet
• CLAIMS causes rapid, substantial and permanent
  weight loss in all users
• CLAIMS reduces risk of disease, including
  osteoporosis, obesity, diabetes, Alzheimers,
  cancer, cardiovascular disease

14
What was wrong?

• MISREPRESENTATION
• Advertising was made to look like a talk show
• Could not produce clinical, independent studies
  to support their claims

15
TrimSpa

• The ad

16
TrimSpa

• Makers of TrimSpa will pay 1.5 million
• CLAIMS Ingredient, Hoodia gordonii, enables
  users to lose substantial weight by suppressing
  appetite.
• CLAIMS Celebrity testimonial. Anna Nicole Smith
  lost 69 pounds in 8 months using TrimSpa
• CLAIMS It makes losing 30, 50, even 70 pounds
  (or however many you need to lose) painless.

17
What was wrong with the advertising?

• Claims were not scientifically substantiated
• Prohibits making any claims about
• Health benefits
• Performance
• Efficacy
• Safety
• Side effects
• Must have competent, reliable scientific
  evidence

18
One-A-Day Weight Smart
19
One-A-Day Weight Smart

• Will pay 3.2 million
• CLAIMS
• Increases metabolism
• Enhances metabolism with its EGCG, a natural
  green tea extract
• Helps prevent weight gain in those over 30
• Helps users control weight by enhancing metabolism

20
Whats wrong with the advertising?

• Lacked neutral, clinical studies demonstrating
  the scientific validity of claims

21
In Summary

• No proof the product is harmful or damages health
• Product will remain on shelves
• Must change advertising
• Or provide credible and substantial evidence
• FTC will ask media not to run these ads

22
Regulatory Prohibitions Tobacco

• Federal law prohibits advertising for
• cigarettes,
• little cigars,
• smokeless tobacco,
• chewing tobacco
• Prohibited on radio, TV, or any other medium of
  electronic communication under the FCC's
  jurisdiction.

23
Advertising Prohibitions -- Tobacco

• The law does NOT ban the advertising of
• smoking accessories,
• cigars,
• pipes,
• pipe tobacco,
• cigarette-making machines.

24
Ohio Alcohol Regulation

• 1. Prohibits Images of Children in Alcohol Ads
• Also includes toys and other images associated
  with childhood
• 2. Prohibits Images or Statements that Portray
  or Encourage Intoxication
• extra Strong
• Rapid rate
• Activities that encourage excess

25
Ohio Alcohol Regulation

• Restricted around schools and other places
  children likely to be present

26
Ohio Alcohol Regulation

• Limit Giveaways
• Contests
• Raffles
• Promotional materials to those who are underage
• Prohibit giveaways as a reward for purchasing a
  product.

27
Regulatory Prohibitions - Lotteries

• Federal law prohibits broadcasting any
  advertisement for a lottery or any information
  concerning a lottery.

28
Regulatory Prohibitions - Lotteries

• A lottery is any game, contest, or promotion that
  contains the elements of
• prize,
• chance,
• consideration" - a legal term that means an act
  or promise that is made to induce someone into an
  agreement.

29
Regulatory Prohibitions - Lotteries

• There are a number of exceptions to this
  prohibition.

30
Regulatory Prohibitions - Lotteries

• Lotteries conducted by a state acting under the
  authority of state law where the advertisement or
  information is broadcast by a radio or TV station
  licensed to a location in that state or in any
  other state that conducts such a lottery

31
Regulatory Prohibitions - Lotteries

• Gaming conducted by an Indian Tribe under the
  Indian Gaming Regulatory Act

32
Regulatory Prohibitions Lotteries

• Lotteries authorized or not otherwise prohibited
  by the state in which they are conducted, and
  which are conducted by a not-for-profit
  organization or a governmental organization

33
Regulatory Prohibitions - Lotteries

• Lotteries conducted as a promotional activity by
  commercial organizations that are clearly
  occasional and ancillary to the primary business
  of that organization, as long as the lotteries
  are authorized or not otherwise prohibited by the
  state in which they are conducted. The
  prohibition regarding lottery advertising is
  currently under review by the Supreme Court.

34
Regulatory Prohibitions - FCC

• Criticism, Ridicule, and Humor Concerning
  Individuals, Groups, and Institutions.
• The First Amendment's guarantee of freedom of
  speech protects programming that stereotypes or
  otherwise offends people with regard to their
  religion, race, national background, gender, or
  other characteristics.

35
Regulatory Prohibitions - FCC

• It also protects broadcasts that criticize or
  ridicule established customs and institutions,
  including the government and its officials.

36
Regulatory Prohibitions Sponsorship

• Sponsorship Identification.
• Sponsorship identification or disclosure must
  accompany any material
• that is broadcast
• in exchange for
• money,
• service
• anything else of value paid to a station, either
  directly or indirectly.

37
Regulatory Prohibitions Amount of Advertising

• Except with respect to children's television
  programming, no law or regulation limits the
  amount of commercial matter that a station may
  broadcast.

38
Regulatory Prohibitions Amount of Advertising

• In TV programs aimed at children 12 and under,
  advertising may not exceed 10.5 minutes an hour
  on weekends and 12 minutes an hour on weekdays.

39
Regulatory Prohibitions

• Loud Commercials.
• In surveys and technical studies of broadcast
  advertising, the FCC have found that loudness is
  a judgment that varies with each listener
• It is influenced by many factors (such as an
  announcement's content and style).
• The FCC have also found no evidence that stations
  deliberately raise audio and modulation levels to
  emphasize commercial messages.

40
Regulatory Prohibitions

• Loud Commercials.
• Broadcast licensees have primary responsibility
  for the adoption of equipment and procedures to
  avoid objectionably loud commercials.

41
Regulatory Prohibitions

• Loud Commercials.
• Stations should identify each message by the
  sponsor or product's name and by the date and
  time of the broadcast.

42
Regulatory Prohibitions Subliminal Advertising

• Subliminal programming is designed to be
  perceived on a subconscious level only.
• Regardless of whether it is effective, the use of
  subliminal perception is inconsistent with a
  station's obligation to serve the public interest
  because the broadcast is intended to be
  deceptive.