Business Action for Responsible Marketing and Advertising (BARMA) ICC/INSEAD training module
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Business Action for Responsible Marketing and Advertising (BARMA) is an ICC-led initiative to facilitate the spread of self-regulation and reinforce its effectiveness by promoting greater application and reach of ICC’s internationally-agreed codes for advertising and marketing practice. More info http://www.codescentre.com/index.php/toolkit/download-barma-material?view=message&layout=message&pf=1
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Business Action for Responsible Marketing and Advertising (BARMA) ICC/INSEAD training module
Editor's Notes
- Advertising and communication can not only help buyers and users make the right purchase and consumption choices but can also have an impact on social norms and behavior. The following slides discuss the principles that should be considered to ensure that advertising does not violate social norms and is socially responsible.
- The goal of this slide is to stimulate a discussion that raises some of the key issues to be developed subsequently.Background informationBenetton is an Italy-based global clothing company. For many years, Benetton’s communication had focused on social and political issues like racial integration, AIDS awareness, war and poverty. Although controversial, the communication strategy seemed to be successful, as Benetton experienced rapid growth.Benetton’s Death Row CampaignIn January 2000, Benetton launched a year-long $15 million global advertising campaign called “We, on Death Row.” This campaign, which featured 26 US prisoners who had been sentenced to death, after having been convicted of murder, appeared on billboards and in major publications in Europe, America and Asia and on the company’s website. A special booklet and video were also released that projected the reality and futility of capital punishment. The booklet included photos of the inmates and interviews about their life, dreams and the punishment. It also contained quotes from the Dalai Lama and the Pope, challenging the right of the state to execute its citizens.OlivieroToscani, the head of Benetton’s advertising department, developed the campaign after spending more than two years visiting death row prisoners in several American prisons. He believed that if the public saw these inmates as “people,” then they would be less inclined to support their execution.Questions to the audience:Do you see any ethical issues with this campaign?How successful do you think the campaign was? (Probe for possible differences between the US and other regions)*** See full teaching note for further details
- After presenting the reactions to the campaign, the instructor can point out that this example illustrates the need to be aware of country differences when one develops a global campaign.This point can be elaborated by raising the following question: “Why was the response to Benetton’s campaign particularly negative in the US?”The relatives and friends of the victims were in the US. They led the protest against the campaign.Support for capital punishment was high in the US: 66% of Americans were in favor of capital punishment, 28% opposed it, and 6% had no opinion (Source: Gallup Poll, February 2000).Poor fit between the supporters of the promoted cause (abolish capital punishment) and the customers of the retailer SEARS.[1] SEARS served mainly low- to mid-income customers, who were probably below the US average in support of abolishing capital punishment. The Benetton death row campaign also shows that constraints on the content of communication may be in conflict with the right to freedom of speech. How this conflict is resolved varies across countries and depends on the content.[2][1] For the importance of such fit see Z. Sdravkovic et al., Dimensions of fit between a brand and a social cause and their influence on attitudes, International Journal of Research in Marketing 27 (2010), 151-160.[2] See http://en.wikipedia.org/wiki/ Freedom_of_speech#Limitations_on_freedom_of_speech
- (Un)ethical advertising and communication can have an impact on …Customer satisfaction:Misleading communication can create expectations about an offering which exceed its perceived performance. Such negative disconfirmation leads to customer dissatisfaction[3].Your brand and company:Exposed deceptive marketing has been shown to have a significant negative impact on shareholder value[4].Industry reputation:Damaging information about one brand can spill over to other brands in the same industry[5].Advertising communication and effectiveness:Deceptive advertising contributes to ad skepticism, which is a general tendency toward disbelief of advertising claims. Ad skeptics like advertising less, rely on it less, attend to it less, and respond less to informational appeals (but more positively to emotional appeals).[6] In addition, ad skepticism induced by one advertiser undermines the credibility of advertising as a whole.[7]Advertising and communication freedom:The percent of Americans with a positive overall view of advertising declined from 41% in 2003 to 33% in 2010 (Source: Gallup, August 2010). And in 2010 65% of Americans thought there should be more strict regulation of advertising claims (Source: Harris Interactive, June 2010).[3] W.D. Hoyer & D.J. MacInnis, Consumer Behavior, 4th ed., Houghton Mifflin, 2007, pp. 282-285.[4] Tipton et al., Regulatory exposure of deceptive marketing and its impact on firm value, Journal of Marketing, 37 (November 2009), 227-243.[5] M.L. Roehm & A.M. Tybout, When will a brand scandal spill over, and how should competitors respond? Journal of Marketing Research 43 (August 2006), pp. 366-373.[6] C. Obermiller et al., Ad skepticism, Journal of Advertising 34 (Fall 2005), pp. 7-17.[7] P.R. Darke & R.J.B. Ritchie, The defensive consumer : Advertising deception, defensive processing, and distrust, Journal of Marketing Research 44 (February 2007), pp. 114-127.
- These slides provide additional evidence and examples of damaging consequences of unethical advertising and communication.
- Advertising and communication is regulated by three types of rules:Laws and regulations issued by governments and supranational institutions such as the European Union: these rules apply to all inhabitants of and organizations operating in a country or region; they are enforced by the judicial system.Business self-regulatory codes: these rules apply to organizations which are members of private bodies that issue the codes and organize their enforcement. Code-issuing bodies can be classified by their international and industry scope. For example,The International Chamber of Commerce (ICC) is an international cross-industry body which has issued the Consolidated ICC Code of Advertising and Marketing Communication Practice;[8]The Pharmaceutical Manufacturers of America (PhRMA) organization is a US- and pharmaceutical industry-specific body which has issued a “Direct to consumer advertisements about prescription medicines” code for its member companies.[9]Company codes: many companies issue advertising and communication codes for their employees, which may go beyond business self-regulatory codes.[10]The Venn diagram illustrates the idea that business and company codes require compliance with (inter)governmental laws and regulations, while often going beyond these rules, especially in countries which do not have well developed governmental laws and regulations.[8]http://www.codescentre;com[9] See http://www.phrma.org/principles_and_guidelines for this and other codes.[10] E.g., Unilever has issued “Unilever global principles for food and beverage marketing”. See http://www.unilever.com/images/ sd_Global_Principles_A5_PDF-2_tcm13-213250.pdf#search=%22principles%20food%20marketing%22
- Ethical decision making requires that one identify the stakeholders affected by a decision.[11] This slide identifies the four main stakeholders that can be affected by advertising and communication decisions.[11] L.K. Treviño & K.A. Nelson, Managing business ethics : Straight talk about how to do it right, 4th ed., John Wiley, 2007, pp. 105-6.
- The slide shows, for each of the four stakeholders, the main principles that should be considered in advertising and communication decisions.The remainder of the presentation discusses these principles, moving clock-wise from Customers to Members of Society, Competitors and, finally, to Suppliers of Advertising/Communication Elements.
- The following slides elaborate the principles that protect the interests of customers.
- BackgroundThe Electronic System for Travel Authorization (ESTA) is an online automated system that determines the eligibility of travelers from countries participating in the Visa Waiver Program (currently 36 countries) to travel to the US. To obtain the authorization, information about the traveler has to be entered in a form on official US government sites.[12] This usually takes no more than five minutes, and the response (approval or not) is almost immediate. Obtaining an ESTA became mandatory in January 2009. The service was offered by the US government free of charge until September 2010.Comments on the slideThis slide shows the information that appeared when one searched for ESTA information on Yahoo UK & Ireland in December 2009. Two sponsored links were on the top of the page, followed by other ESTA-related links.Question to the audience:On which of the links would you click first? Why?The next slide shows the main contents of the website corresponding to the first sponsored link (“Esta Online Application www.ESTAonline.com …”). This link is favored by its position as the top link, and by the absence of the mention of a fee, unlike the second link, which indicates a £20 fee.[12] E.g., https://esta.cbp.dhs.gov/esta/esta.html?_flowExecutionKey=_c5127B0CE-9AB7-40A9-49B4-3C99141963F6_k4C475C9E-7E1B-4DAE-E0E6-14D34C1DA4E5
- The webpage on the upper left side was the homepage of www.ESTAonline.com. The webpage in the middle of the slide is the one that appeared when one clicked on “Submit ESTA application” on the homepage. The form required providing personal information and credit card information to pay $48.50 for the “ESTA Online Application Package”. The webpage on the lower right side of the slide was the webpage that appeared when one clicked on “Frequently Asked Questions”.Questions to the audience:1. Which organization was responsible for this website? Was it the US government?The eagle on top of each webpage and other cues may lead one to think that this is an official US government website.2. What did customers get for the $48.50 price?Customers might expect that the fee covers the entire ESTA application process.Answer:1. The website was operated by a private organization. Attentive readers of the webpage could find this information in several places:On the Homepage under “About this Website”On the page featuring the ESTA Online Application Package: “I understand that ESTAonline.com is a private website not affiliated with the United States government.On the FAQ page: see the “Legal Notice …” at the bottom of the pageThe $48.50 price paid only for information about the Visa Waiver Program. Customers still had to go to an official US government site and complete the ESTA application on their own. This was indicated in small print in the third paragraph from the top of the “ESTA Online Application” page:*** See full teaching note for further details
- This slide shows key questions to ask in order to decide whether an advertisement is truthful or not.An advertisement may lack truthfulness or be misleading in two ways: (1) through its claims, and (2) through an omission.[14]ClaimsThe first step in assessing the truthfulness of an advertisement consists in identifying all explicit and implicit claims.Explicit claims are those literally made in an ad. For example, “ABC Mouthwash prevents colds” is an explicit claim that the brand will prevent colds.Implicit claims are claims that are suggested or implied by all elements of an ad, including the brand name, text, and visuals. Examples:The statement “ABC Mouthwash kills the germs that cause colds” contains the implicit claim that the brand prevents colds.The statement “ABC Pain Reliever has a special ingredient for back pain that other pain relievers don’t have” contains the implicit claim that ABC pain reliever is more effective in relieving back pain than competing pain relievers.The next step divides all claims into those that relate to verifiable facts and those that are not verifiable.Claims relating to verifiable facts are capable of empirical verification. For example, the above examples of the claims for ABC Mouthwash and ABC Pain Reliever are verifiable.Not verifiable claims refer to claims the truth or falsity of which cannot be precisely determined. They include statements of the seller’s opinion, customers’ subjective evaluations, and obviously exaggerated opinions which reasonable consumers do not take seriously.[15] Examples:“ABC Cola tastes great”; “ABC Soup is M’mM’m good”; “ABC Restaurant - the ultimate dining experience”.** See full teaching note for further details[14] The US Federal Trade Commission (FTC) uses the term “deceptive advertising”. According to the FTC “an ad is deceptive if it contains a statement – or omits information – that is likely to mislead consumers acting reasonably under the circumstances; and is ‘material’ – that is, important to a consumer’s decision to buy or use the product.” Source: http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business, accessed on November 3, 2010[15] Such claims are also called « puffery ». See I.L. Preston, Regulatory positions toward advertising puffery of the Uniform Commercial Code and the Federal Trade Commission, Journal of Public Policy and Marketing 16 (Fall 1997), pp. 336-344.
- BackgroundUK press ad for the Lexus SUV (Toyota)Questions to the audience:What are the explicit and implicit claims made?Which of these claims are verifiable?Answer:Explicit claims: High performance, low emissions, zero guiltImplicit claim: “Zero guilt” implies that the car causes little or no environmental harm.Verifiable claims: High performance, low emissions, little or no environmental harmHowever, the “high performance, low emissions” claims are ambiguous because the reference class can be understood to be (a) all cars, or (b) sports utility vehicles (SUV) only.Not verifiable claim: Zero guiltComplaintThe “Low emissions” and “zero guilt” claims were challenged as giving a misleading impression of the car’s carbon dioxide (CO2) emissions in comparison with other vehicles and misleadingly implied the car caused little or no harm to the environment.*** See full teaching note for further details
- BackgroundPantene commercial from Argentina – claim that their product is the leader in the market for strengthening hair, etc. Questions to the audience:What are the explicit and implicit claims made?Which of these claims are verifiable? AnswerExplicit claim: “There is only one soft drink accredited by the BDA”Implicit claim:Ribena benefits oral healthSuggested / implied by:“Tooth kind” element of the brandAccreditation by the British Dental AssociationUse of bottles of Ribena instead of the bristles of the toothbrushBoth the explicit and the implicit claims are verifiable ComplaintA competitor requested analysis that the claims made by Pantene’s commercial were honest and trustful. Advertiser RebuttalPantene, the advertiser and their adverting agency, provided and showed all technical studies, which included comparisons with other competitor and market statistics. All documentation proved the veracity of their advertising. OutcomeThe complaint was not upheld by CONARP. Pantene’s claim was founded and thus their advertisement considered honest and truthful.
- BackgroundTV commercial for Actimel (marketed in North America under the brand name DanActive), a pro-biotic drinking yogurt marketed by Danone.Claims: Explicit claimsKids love Actimel: could potentially be verified by a surveyScientifically proven to help support your kids’ defenses: verifiableImplicit claim:Actimel defends normal, healthy children of school age (five to sixteen years old) against common, every-day childhood infections.The target group is suggested by the image of the bottle jumping over the skipping rope together with the sound of children playing in the background.Complaint:The claim that Actimel was "scientifically proven to help support your kids' defences" was challenged.Advertiser:Danone said they had referred to Actimel as being “scientifically proven” in their ads since November 2007, and that the basis for the claim was a significant body of published scientific evidence that showed that Actimel supported the natural defenses of different age groups, including children.Outcome:Complaint upheld by ASA, which considered that the evidence provided by Danone did not support the claims made in the ad.
- BackgroundThe left side of the slide shows a UK magazine ad for the Olay Definity eye illuminator, the purpose of which is to reduce the look of wrinkles and dark circles under the eyes. The ad features Twiggy, a well-known English model, actress and singer. The right side of the slide shows an “off duty” shot of Twiggy published in a national newspaper in an article which compared this shot of Twiggy with the one in the Olay Definity ad.ClaimsExplicit claim: “Reduces the look of wrinkles and dark circles for brighter, younger-looking eyes” (Verifiable)Implicit claim:Twiggy’s appearance in the ad, specifically in the eye area, suggests that the product is highly effective.Complaints:The ad is misleading, because it implies that Twiggy’s appearance in the ad was achieved solely through the use of Olay Definity rather than with the assistance of digital re-touching.Advertiser:The use of post-production techniques to correct for lighting and other minor photographic deficiencies before publishing the final shots as part of an advertising campaign is routine practice.Outcome:Complaint upheld. The post-production re-touching of this ad, specifically in the eye areas, could give consumers a misleading impression of the effect the product could achieve (exaggeration or omission to mention the re-touching)
- BackgroundUK poster for the British retailer TESCOClaimsExplicit claim:Price reduced to £74.98Implicit claim:The offer includes both the docking station and the iPod.Complaints:The poster is misleading because it implies the iPod was included in the priceAdvertiserThe ad was no different from other iPod docking station advertising. Moreover, they had gone further than other advertisers by including small print at the foot of the poster, which stated that the iPod itself was not included in the offer. Also, they believed that consumers generally would not expect the iPod, with a retail value of between £100 and £150, to be included in the offer price.OutcomeComplaint upheld.
- BackgroundUK direct mailing campaign for the PlayStation 2 Formula One 2001 Championship game.Over 70,000 PlayStation 2 owners, mostly teenagers, received “hand-written” notes, supposedly from a young Italian boy, apparently ripped from a school note. The notes were accompanied by an advertisement for the game, with details of a competition. The ad had ragged edges, designed to look as if it had been torn from a magazine.ComplaintsThe advertising is confusing, with adults posing as children, using a child’s handwriting to sell their product.OutcomeComplaint upheld. The ad is misleading because it appears as though it was a personal hand-written letter from a child.
- BackgroundUK press adComplaintsComplainants challenged whether the advertiser could substantiate the efficacy claims for the weight loss regime, including whether or not the testimonials were genuine.AdvertiserThe advertiser sent two signed testimonials from people whom they said were part of the initial trial conducted by Dr Vicky Hillier, a qualified medical practitioner with a private practice in New South Wales, AustraliaOutcomeComplaint upheld. There was no rigorous clinical evidence of the efficacy of the weight loss regime. Dr. Hillier’s statement “You have my word on it and guarantee as a medical doctor” implied that the regime was guaranteed to work and to do so safely even without direct medical supervision. But there was no evidence to show that.
- BackgroundUK national press, magazine, leaflet campaign for Clarins Expertise 3P, a mist that women spray on their body.ComplaintsThe ads made an undue appeal to readers’ fear of the harm that could be caused by man-made electromagnetic waves.Could Clarins substantiate the claim that electromagnetic waves, generated by modern day devices or “domestic communications equipment”, could damage or age skin?Could the implied anti-ageing and pro-health efficacy claims be substantiated?AdvertiserThe ads were factual and informative and did not make an undue appeal to readers’ fear.Clarins submitted scientific studies on the influence of electromagnetic waves on skin cells.Clarins asserted that the role of the product was not to block the waves but to provide skin cells with active ingredients proven to reinforce the skin’s self-defense capacity against the damages identified after exposure to electromagnetic waves.OutcomeThe ads were judged to make an undue appeal to readers’ fears.2. & 3: The claims were not substantiated.
- BackgroundUK Anti-smoking posters, which were part of a large campaign by the Department of Health (television, magazine, poster, national press, internet) ComplaintsThe images of people with hooks in their faces were offensive, frightening and distressing, particularly to children.AdvertiserThe Department of Health believed any fear created by the ads would pale into insignificance when compared to the physical and emotional harm caused to smokers (and their families and friends) that became ill or died as a result of smoking. They said the ads did not encourage or condone violence or cruelty and said the hook image was used to encourage people to stop smoking and prevent harm. OutcomeComplaint upheld.Because adults were likely to understand the seriousness of the anti-smoking message, the posters images were unlikely to cause them serious offence or distress. However, although the posters had not been placed near schools, they had appeared in places where they could easily be seen by children. Because they were untargeted, and realistically and graphically showed the piercing of the cheek with a hook, the posters were likely to frighten and distress children.
- Background:French press ad for a mineral-water based drink. The left ad is the version prior to submission to the French SRO. The ad on the right side of the slide is the actually used ad, which incorporated suggestions from the French SROQuestion to the audience:What is different about the two ads? Why?AnswerThe initial version of the ad shows a kid drinking the advertised product while driving a scooter. This is not safe, and children who see the ad might emulate this behavior. In the modified ad, the child is not driving the scooter anymore.
- Advertising and communication can not only help buyers and users make the right purchase and consumption choices but can also have an impact on social norms and behavior. The following slides discuss the principles that should be considered to ensure that advertising does not violate social norms and is socially responsible.
- Advertisements can offend audiences by violating norms and thereby elicit anger, outrage, distaste, disgust and similar negative emotions. The offense may be unintended or deliberate.Advertisers who use shocking content deliberately hope to increase attention, obtain extra publicity, and appeal to target groups who may not adhere to the norms that are breached or even oppose them.The slide lists several types of appeals that often cause offense (inappropriate use of religious symbols, sexual references, etc.).
- BackgroundThe clothing company Benetton used this ad in many countries.OutcomeThe response to the campaign varied by country, and generally correlated with the power of the Catholic church. For example, in Italy the ad was banned by the Italian SRO (Self-Regulatory Organization), whereas it won the Eurobest advertising award in England. In France, a court rejected a complaint demanding the withdrawal the ads from up to 1,300 billboards.
- BackgroundThis ad campaign for the perfume Opium from Yves Saint Laurent was widely seen in print ads and posters in many countries. It won an award in Spain but generated an uproar in other places, particularly in the United Kingdom. There, the initial print campaign elicited three complaints but became the most complained about ad in the last five years when it appeared on posters in more than 500 locations over three weeks.Outcome (UK)ASA ruled that the initial print campaign was acceptable because the ad appeared mainly in women's magazines and was targeted at a specific group of consumers. But the poster campaign caused serious or widespread offense, thereby breaking the British code of advertising and sales promotion. ASA requested that every poster be removed and that the picture would not be used in such a way again.
- Background[16]The slide shows posters for the UK based clothing company French connection. In April 1997, French Connection began branding their clothes "fcuk" (usually written in lowercase). Apparently they first discovered the acronym when a fax was sent from their Hong Kong store, entitled "FCHK to FCUK". Though they insisted it was an acronym for French Connection United Kingdom, its similarity to another four-letter word caused controversy. French Connection exploited the controversy of the name, producing an extremely popular range of t-shirts with messages such as "fcuk fashion", "fcuk this", "hot as fcuk", "mile high fcuk", "too busy to fcuk", "lucky fcuk", "Fun Comes Usually Kneeling", "fcuk on the beach", Cool as fcuk, etc. There were also a number of regionally specific messages, such as "fondle constantly until knackered" (in the UK), "fcuk in hull" ,"no fcukin worries" (in Australia) and "fcuk off". "Chugging the fcuk" and "Munching on fcuk" were popular shirt titles but were later found as inappropriate.Outcome (UK)ASA banned a number of French connection advertisements and ordered the company to submit all posters for approval before running them. [16] The background information is from Wikipedia: http://en.wikipedia.org/wiki/French_Connection_(clothing), accessed November 5, 2010
- BackgroundThe ad appeared on British TV.OutcomeComplaints started immediately: Heinz UK received some 30-40 complaints in the days following the launch of the campaign.Complaints to ASA ended up making the ad number 4 on ASA’s hit parade of the most complained ads during 2008.In the US, where the ad was never aired, the American Family Association, a powerful Christian group, sent an email alert to its 3.5 million members:"I thought you might be interested in seeing the Heinz ad featuring a homosexual family and two homosexuals kissing," said the email action alert. "We suggest you forward this to all your family and friends letting them know of the push for homosexual marriage by Heinz. This ad is currently running in England, but no doubt can be expected in the US soon.”The email encouraged recipients to swamp Heinz's US headquarters with complaints, which many of them did.Heinz UK pulled the ad after less than a week on air. UK Gay advocacy groups launched campaigns to have the ad put back on air, urging people to boycott Heinz goods.Less than two weeks after Heinz UK pulled the ad, ASA decided NOT to investigate the campaign:“The ASA considered, while some viewers might have personal objections to anyportrayal of same-sexkissing, therewasnothing in the kissshownthatwouldconstitute a breach of the Code. ASA consideredmost people wouldviewit as humorous, surreal or daft but itwasunlikely to cause harm to children or anyother section of the audience.” (ASA Annual Report 2008).
- Advertising can have a negative impact on how members of the audience perceive others (e.g., dehumanizing, considering them as objects, or stereotyping them) and themselves (self-concept, self-esteem), and how they behave toward others (e.g., discrimination, violence). The principles of social responsibility are designed to prevent such negative social consequences of advertising and communication.
- Ad on the left-hand sidePoster ad for SLOGGI underwear displayed in bus shelters in France. “EN PROMO dans vos points de vente” means “ON SALE in your stores”OutcomeThe French SRO upheld complaints against this ad.Ad on the right-hand sidePostcard ad for a hotel chain. “24 hours open. Sexy prices”.OutcomeThe German SRO upheld complaints against this ad.
- http://youtu.be/z7TKz5bIUsgBackgroundTV ad in India for the ING Vysya Life Insurance Company.The “sinking feeling” ad shows several situations in which a woman brings happiness but, at the same time, imposes a burden to the man and breadwinner of the family. The burden is visually expressed by the floor which sinks under the man’s feet.OutcomeThe Indian SRO judged that the ad portrayed gender insensitivity.
- BackgroundTV ad in China for Henkel Sunblock Lotion. The ad suggests that the child with the lighter skin is superior to the child with the darker skin.OutcomeComplaint upheld, and withdrawal of the ad.The ad clearly violates Article 18 of the ICC Code:“Marketing communication should not suggest that possession or use of the promoted product will give a child or young person physical, psychological or social advantages over other children or young people, or that not possessing the product will have the opposite effect.”
- BackgroundPress ad in Italy for the fashion company Dolce & Gabbana.OutcomeComplaint upheld.In the adjudication, the Jury explained that the woman in the ad has an alienated expression and is looking away. The perception that one has when looking at the ad is that there is no agreement or complicity between the woman and the men, and there is no possibility for the woman to escape to what is happening. The image, while not showing explicit references to physical violence, evokes the representation of an abuse.
- BackgroundUK poster and magazine ads for the videogame Kane & Lynch: Dead Men.OutcomeASA concluded that the ads breached the code, as they were likely to be seen as condoning and glorifying real violence
- BackgroundOutdoor advertising in Hungary for a film festival dedicated to lesbian, gay, bisexual and transgender themes.OutcomeThe Hungarian SRO stopped this campaign because it was in breach of the section of the code that says that minors should not appear on advertisements of products not suitable for them
- Advertising and communication should not make unfair comparisons with competing products, not denigrate them and not mislead customers about the identity of products. The following slides provide examples that illustrate these three principles.
- BackgroundUK press ad by Daihatsu which compared the Daihatsu 1.0 Sirion+ with the Vauxhall Corsa GLS 1.0. Note the pun used in the headline: “definitely need specs” (“Specs” is slang for spectacles or glasses)Question to the audienceWhat do you think is unfair in this comparison?AnswerThe ad failed to mention 34 specification advantages which the Corsa had over the Daihatsu.The ad referred to a Corsa model which was 18 months older than the Daihatsu model.At the time of the ad, the Corsa model shown had already been replaced by a superior model.OutcomeComplaint upheld.
- BackgroundUK national ads and posters promoting the Thomas Cook foreign exchange servicesComplaintsThe claim "We beat the Post Office exchange rates*" was challenged as being misleading and in need of substantiation.OutcomeThe ASA compared the exchange rates sent by Thomas Cook with the rates offered by the Post Office. It noted that on the day the ads first appeared, and the following day, the 301 Post Office branches offering differential pricing offered better exchange rates for US dollars for amounts above and below £500. Moreover, ASA noted the Post Offices policy of differential pricing had not been set up in response to the campaign, but was in existence before the ads appeared on 23 March. Because the claim "We beat the Post Office exchange rates*" was a price promise, ASA considered Thomas Cook needed to show that all their branches offered better exchange rates on all currencies than all Post Offices branches from the date the ads appeared. Because that was not the case, and they had not ensured they were able to beat the rates offered by the 301 Post Office branches offering differential pricing, ASA concluded the claim was unsubstantiated and misleading. ASA therefore upheld the complaints and concluded that the ads must not appear again their current form.
- BackgroundA billboard and press campaign in France for the mineral water Cristaline.OutcomeThe French SRO ruled that the ad was unfair, denigrated a competitor, and should be withdrawn.The advertiser complied, but not without receiving a great deal of adverse publicity.
- BackgroundThe left-hand side of the slide shows the packaging of Aunt Caroline rice, and the right-hand side the packaging of Golden Magic rice, two competing brands of rice in South Africa.ComplaintThe company owning Aunt Caroline rice complained that Golden Magic rice exploited the advertising goodwill of the Aunt Caroline brand by using an image of an elderly lady with spectacles holding a pot of rice, and image which was associated with Aunt Caroline.OutcomeThe South African ASA upheld the complaint. It considered that the image of Aunt Caroline constituted “original intellectual thought” that was a distinguishing feature of the brand. Golden Magic had imitated the packaging of the Aunt Caroline brand to such an extent as to negatively affect the advertising value of the brand.
- Advertising should respect intellectual property rights not only of competitors (as shown in the previous example) but of any other agents with rights to any element (e.g., photo, symbol) use in the ad.
- BackgroundAll three ads come from Germany.Top left ad: for Sixt, a rental car company, using German chancellor Angela Merkel. Text: “Do you feel like having a new hair style?” (Lust auf eineneueFrisur?).” Rent a cabriolet” (MietenSiesicheinCabrio)Top right ad: for brunobanani, an underwear company. Showing Angela Merkel in front, and other German politicians in the background. “We do everythingtoboostdemand” (Wir geben alles, um die Nachfrage anzukurbeln.)Bottom ad: ad for the energy drink Red Bull, featuring again German chancellor Angela Merkel, and, on her right, Frank-Walter Steinmeier, Germany’s Social Democratic opposition leader and her main opponent in the 2009 German parliamentary elections. Text: “Red Bull. So that your face does not fall asleep!” (damitihrGesichtnichteinschläft!).DiscussionAlthough they should have, none of these advertisers asked the persons featured in the ads for their permission. Luckily for the advertisers, Angela Merkel has not gone to court to complain, unlike the French President Nicolas Sarkozy, who sued and won in court against the low-cost airline Ryanair which featured him and his ex-top model wife Carla Bruni in an ad.
- BackgroundThe picture on the left-hand side of the slide shows the model, actress, musician and fashion designer MillaJovovich in the science-fiction movie “The Fifth Element”.The picture on the right-hand side shows MillaJovovich in a TV ad for the French mobile telephone company SFR. The campaign was also executed on billboards and in print.ComplaintThe ad uses the same character as in the film - same actress, same hairstyle, same costume – without permission.OutcomeThe agency was sued, found guilty and fined 300,000 Euros. The agency then appealed, lost and was fined 2.75 million Euros.
- BackgroundEmail (Belgium) for Soho Club. ComplaintPromotion of excessive consumption and targeting especially young womenAdvertiserE-mails are sent only to clients of the club, which are 16 or older.OutcomeComplaint upheld. No precaution is taken to prevent minors (<18) from receiving the ads. Furthermore the ads promote excessive consumption.
- BackgroundA thirty-second television commercial directed at children (aired during children’s TV programming) – advertises mobile services by linking user to a text short-code (75555). Commercial began with an image of a variety of dogs. Then, a woman’s voice asks; “If you were a dog, what kind would you be?” Viewers are then prompted to; text POOCH, YOUR NAME, to 7555, and find out which dog you are.” Finally, it states; “You can subscribe to get up to 20 products, like games, for $9.99 a month. Standard messaging rates apply.” Commercial also featured link directing children to Advertiser’s website. ComplaintLack of clarification to children: no clarification to child that by texting 75555, he or she would actually be committing his or her parents to pay $9.99 a month. Advertiser: No rebuttal. Outcome: The advertiser permanently discontinued the commercial and has no plans on airing during children’s programming again.
- BackgroundFanlala.com is a website for ‘tween’ entertainment (celebrity news, games, etc.). Users can build their own profile and share their experiences with “friends.” Personal profiles are confidential and only accessible to approved friends within the Fanlala community; however, visitors can view photos/videos without having to register. Most activities on Fanlala require registration (a birth date is required). If a registrant is under 13 years of age, a box appears requesting a parent email. There is no session cookie to prevent the child from going back and changing his/her age. In fact, he/she can simply make the changes so that the box disappears. If the child does oblige and enters the parent’s email, an email is sent stating: “Hello Mommy, Your child recently registered for an account on Fanlala, a safe, fully moderated community for tweens. Please confirm your child’s Fanlala account by clicking the below url. You can read more about Fanlala here. [Link to Privacy Policy] Thank you and if you have any questions, please email support@fanlala.com. We’d love to hear what you think!” The notice does not inform parents that if they grant their child permission to use the site that the child may be able to disclose personally identifiable information (“PII”). Once the parent’s email address is confirmed, the child can login and participate in all features offered on the site, including forward to a friend, member profiles, clubs and blogs where PII can be shared with other members. ComplaintConcerns: Absence of neutral age-screening at registrationAdequacy of notice sent to parents regarding disclosure of PII (personally identifiable information) Appropriateness of links to Twitter Advertiser: Advertiser, Imbee Inc. responded informing CARU that they had just recently acquired Fanlala Inc. Imbee noted that their other website is compliant and they intend to make all the necessary changes and would do so immediately. Outcome: Imbee immediately incorporated all the necessary changes as sited by CARU. The website now appropriately addresses children and tweens. Neutral age-screening was added at registration, option to post personally identifiable information was removed, and no links to inappropriate content checked.
- BackgroundAd for Weight Club (Sweden) ComplaintMisleading: the article is an advertorial as it advertises the Weight Club. Furthermore the article is surrounded by ads for the Weight Club.AdvertiserWeight Club refers only to a sub section of the Newspaper, and not to the real Weight Club. The real Weight Club (paying service) is only used as an example in the article and the ads surrounding the article are contextual ads.OutcomeComplaint upheld. The article is an advertorial and should be identified as such.
- There are globally agreed principles set by industry, which are then built upon to establish local best practice. Reasons why they should be known by all practitioners are listed here.The full Consolidated ICC Code of Advertising and Marketing Practice is available online at: www.iccwbo.org along with further resource materials. For information on the local or sectoral codes, refer to the self-regulatory organization or relevant trade associations in the country or sector.