Unethical advertising and marketing practices used and their effects

1. UNETHICAL ADVERTISING
AND MARKETING
BUSINESS ETHICS

2. AGENDA

INTRODUCTION

TYPES OF UNETHICAL ADVERTISEMENTS

APPLE, ACCC AGREE ON $2.25M 4G FINE

APPLE'S SIRI SUED AGAIN FOR EXAGGERATED ADS

GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR IMPROPER
MARKETING AND UNETHICAL BEHAVIOR

CONCLUSION & REFERENCES

3. INTRODUCTION


Ethics is a branch of philosophy which seeks to address
questions about
 Morality
 About concepts such as good and bad
 Right and wrong
 Justice and virtue
Reasons for Advertising
 Increasing the sales of the product/service
 Creating and maintaining a brand identity or brand image
 Introduction of a new product or service
 Increasing the buzz-value of the brand or the company

4. INTRODUCTION

Unethical Advertisement

When it has degraded or underestimated the substitute or
rival's product

When it gives false or misleading information on the value
of the product

When it fails to give useful information on the possible
reaction or side effects of the product

When it is immoral

5. TYPES OF UNETHICAL ADVERTISEMENTS
Type of Unethical Advertising and Marketing
 Surrogate
 Puffery
 Exaggeration
 Unverified claims
 Women used as sex symbols for promoting products
 Comparative advertisements
 Use of children in advertising
 Vulgar advertising

6. APPLE, ACCC AGREE ON $2.25M 4G FINE
Summary: Apple and the Australian Competition and Consumer
Commission (ACCC) have agreed that Apple should pay a
$2.25 million penalty for calling its iPads "4G", even though
they don't work on Australian 4G networks
Facts:
iPad with Wi-Fi and 4G could connect to Telstra's LTE network on:
 Its web page and online store
 Its own stores
 Information and materials provided to resellers
 Information and materials provided by Apple on reseller sites

7. APPLE, ACCC AGREE ON $2.25M 4G FINE
Impact:
 Provided unconditional refunds to all potentially affected iPad
customers
 Altered its worldwide marketing materials
 Apple also changed the designator globally
Approach:
 Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people

8. APPLE'S SIRI SUED AGAIN FOR
EXAGGERATED ADS
Summary: Siri, the voice-activated personal assistant program
built into the Apple iPhone 4S, has been sued again for
allegedly overselling its abilities in advertising and TV
commercials
Facts:
 False Claims of Siri is user friendly
 Siri to make appointments,
 Find restaurants
 Even to learn the guitar chords to classic rock songs
 Tasks as easily accomplished "just by asking" Siri,”

9. APPLE'S SIRI SUED AGAIN FOR
EXAGGERATED ADS
Impact:
 Fine was paid
 Advertisement was modified
Approach:
 Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people
 Moral Right- An ethical decision is one that best maintains and
protects the fundamental rights and privileges of the people
affected by it

10. GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR
IMPROPER MARKETING AND UNETHICAL BEHAVIOR
Summary: GlaxoSmithKline (GSK), to pay $3 billion in criminal
and civil liabilities in the largest healthcare fraud settlement in
US history. GSK was caught promoting several drugs for
unapproved uses, failing to report safety data, paying
kickbacks to physicians, and price reporting
Facts:
 Unapproved uses (or off-label uses) - Paxil
 Failing to report safety data – Avandia
 Kickbacks

11. GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR
IMPROPER MARKETING AND UNETHICAL BEHAVIOR
Impact:
 Fine was paid
 Prison to CEO, Managers and Executive
 Global brand image was effected
Approach:
 Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people

12. References



http://www.zdnet.com/apple-accc-agree-on-2-25m-4g-fine1339339436/
http://www.hindustantimes.com/technology/PersonalTechUpdates/Apple-s-Siri-sued-again-for-exaggerated-ads/SPArticle1-832555.aspx
http://www.skepticalraptor.com/skepticalraptorblog.php/glax
osmithkline-fined-3-billion-fda-improper-marketing-unethicalbehavior/

13. THANK YOU
BUSINESS ETHICS