L 11 Advertising and Society

Advertising: Social, Economic and
Ethical Issues
Prof. (Dr.) R. Bakshi

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Social – social and cultural,
Ethical – deceptive, offensive, economical- effect
on consumer choice, competition, cost and price
Regulatory aspects of advertising – ASCI

Consumers can compare
competitive offerings easily and
competitive rivalry increases.
Efficient firms remain, and as the
inefficient leave, new entrants
appear; the effect on
concentration is ambiguous.
Advertising = Market Power Advertising = Information
Firms are insulated from market
competition and potential rivals;
concentration increases, leaving
firms with more discretionary
power.

Proponents of Advertising
1. Provides information
2. Encourages a standard
of living improvement
3. Produces jobs
4. Promotes competition
Critics of Advertising…
1. Creates needs and faults
2. More propaganda than
information
3. Promotes materialism

Advertising makes people buy things they
don’t need
 Advertising may encourage materialism
 Information versus persuasion dichotomy

 Commercials provide general awareness and
valuable information about goods and services.
 Ads are powerful means of communication
during crisis and aid in solving social issues
between the government and the common
people.
 In India Government advertises in radio,TV and
newspaper to get programmes like Polio
vaccination, the success rate has been over 80 %.
 Social organizations and NGO's use
advertisement for promoting campaigns..

Positive Effects
1. Informed Society
2. Health and Hygiene Awareness
3. Rights of Consumers
4. Preventive course for dreaded
diseases
5. New ideas
6. Advertisements contribute to
creativity of people
7. Environmental protection
8. Social changes
9. Quality consciousness
10. Promotion of national interest
Negative Effects
1. Children and Advertisement
2. Control of Media
3. Materialism
4. Stereotypes
5. It plays with the emotions of
general public
6. Encourages them to think
that buying and depleting
are the activities of life.

Effects on consumer choice
 Differentiation
 Brand loyalty
Effects on competition
 Barriers to entry
 Economies of scale
Effects on product costs and prices
 Advertising as an expense
 Increased differentiation

 Everything that people have, affects everything we do think,
and do as members of a society” (Ferraro, 2005)
 Culture provides mass media with sources for content. All
content must be derived from culture, including entertainment,
news and advertisements, otherwise it could not be understood.
 Refers to the beliefs, values, behavior and ways of doing thing
shared by group of people
 Impacts every aspect of society
 Important environmental factor

 Symbol
 Tradition
 Relationship
 Fun and
Happiness

Ethics: Moral principles and values that govern the actions of and
individual or group.
An advertisement need to be:
 True.
 Legal.
 Must not misguide the society, especially children
 Marketers must make decisions regarding the appropriateness of
their actions
 Companies are scrutinized for their ethics .

Advertisements should not
1. Drive Desire for Unnecessary Products
2. Deceptive
3. Offensive
4. Promote Unhealthy Products
5. Attracting people to consume unhealthy products
6. Create a Sort of Unsatisfied Society

 Concealment of Facts
 Advertisements Using Children
 Dangerous Stunts
 Usage of Inappropriate Stereotypes
 Subliminal Advertising
 Manipulative Advertising
 Puffery
 Glorifying Glamorous Looks
 Surrogate Advertising
 Improper Language Usage

Surrogate advertising is a
form of advertising which
is used to
promote banned products,
like cigarettes and alcohol,
in the disguise of another
product.
This type of advertising
uses a product of a fairly
close category, as: club
soda, mineral water in case
of alcohol, or products of a
completely different
category to register
the brand into the minds of
their consumers.
First surrogate advertising
was seen by the Indian
tobacco Company ‘Azad
Bidi’, who sponsored an
international cricket match
in India

Is an advertising or promotional material that makes broad exaggerated or boastful
statements about a product or service that are subjective (or a matter of opinion), rather
than objective (something that is measurable), and that which no reasonable person
would presume to be literally true.
Advertising Standards Council of India (ASCI) had sent a notice to Bharti Airtel Limited,asking
the company to withdraw these ads.The ASCI claimed that the advertisements were misleading© Prof.( Dr.) R. Bakshi- This ppt presentation (or any part) is not be used without written

 A Promotional technique where advertiser claims superiority
of product by direct or indirect comparison with competing
product/s. It is used to
1. Degrade the brand competitor’s brand performance.
2. Increase acceptance of the brand
3. Convince users
 It is permitted till
1. It is not found misleading.
2. It compares goods or services meeting the same needs or
intended for the same purpose.
3. It objectively compares one or more material, relevant,
verifiable and representative features, it can compare may
include price.
4. It does not create confusion in the market place.
5. It does not take unfair advantage of the reputation of a
trademark,trade name or other distinguishing marks of a
competitor.

Comparative Advertising can change consumers perceptions of competitors brands
to negative attitudes.
The following 3 pictures displays Pepsi’s attempt to change beliefs about Coke’s
brand. In image 3 we can see Coke’s response to this comparative advertising.

Portrayal of women
Gender stereotyping
Portrayal of women as sex objects
Role portrayal of women to reflect changing role in
society

Some studies have shown…
 Children lack experience and knowledge to evaluate
advertising critically
 They can not differentiate between commercials and
program (fantasy vs. reality)
 Children are vulnerable to advertising
 Children must learn through the consumer
socialization process; need to acquire skills to
function in the marketplace
 Acquired skills have helped teens evaluate ads and
recognize persuasion techniques
…while other studies argue

 Children between ages 2-12 watch on average 21.5 hours of
TV per week and may see 22,000 commercials per year
 Television is an important source of information for children
about products
Children liked Ads that are
1. Rich in Creative Appeal
2. Rich in Technical production elements
 Music,
 Visuals
 Storyline
Source: Roy, S (2013) Impact of Advertising on Indian Children: Spandan FMS –GNIT IJC;Vol.1,No.1

Reasons for liking advertisements
1. Children like to see advertisements with new
stories
2. Advertisement are entertaining.
3. Children like advertisements for toothpaste
as it help to clean their teeth.
4. Children like brother and sister
conversation.
5. Children like advertisement for product/s
they use.
6. Advertisement give product information thus
they can request their parents to buy them.
7. Some advertisement make children feel
good.
Reasons for not liking advertisements
1. Children think that some advertisement are
bad
2. Advertisement disturbs during watching
their program thus they like to change the
channel.
3. Some advertisement are distracting and
very irritating
4. Advertisement are of very less duration it
ends before understanding.
5. Watching advertisement waste time
6. Celebrity has no effect as children think
that they can become a celebrity even if
they don’t drink a particular brand.
Source: Roy, S (2013) Impact of Advertising on Indian Children: Spandan FMS –GNIT IJC;Vol.1,No.1

An offensive advertising is something when a company through its ad tells
it customers that
1. The competitor's product is low in quality.
2. Their product/s are good for health while their competitor's product is
bad for health.
3. Their company gives you more than their competitor does for the same
amount of money.
4. Their local business is connected with the community, unlike their large,
impersonal competitor.
5. EXAGGERATION: Using false claims in the advertisements about the
product.

INDIAN ADVERTISING
CONTROLLING MECHANISM

 Safeguard against the indiscriminate use for the promotion of
products which are regarded as hazardous to society or people
to a degree or of a type that is not acceptable at large.
 Ensure advertisements observe fairness in the competition so
that the consumer’s need to be informed of choices in the
marketplace.
 No advertisement shall be permitted that derides any race,
caste, nationality.
 Restrict advertisements which is against the constitution of
India, that presents criminality, exploits national emblem or
security.

 Press Council of India Act, 1978
 Cable television regulation act, 1955 and Cable television amendment act, 2006
 Establishment of the ASCI, 1985
 The consumer protection Act, 1986
 Restrictions on advertising under the Cigarettes and other Tobacco Products Act,
2003
 Advertising regulations under Drug and Magic Remedies Act, 1954
 Drugs and Cosmetics Act, 1940
 Advertising restrictions under Prenatal Diagnostic Techniques Act, 1994
 Young Persons Harmful Publications Act, 1956
 The Indian Penal Code and criminality of advertisements
 Information Technology Act, 2000
 Constitution of India
 The Drugs and Magic Remedies Act, 1955

When an advertiser is creating an ad, the consumer is his
audience.The feedback from a consumer is important to the
advertiser so he can be assured if his message has been
correctly conveyed. If a consumer feels that a particular
advertisement is in bad taste or is false in its claims, they
need a body or council to whom they can air their
grievances and who will take any appropriate action, if
necessary. ASCI as a self-regulatory body governing
advertising content is the ideal medium as its purpose is to
serve both the advertisers as well as the consumers.

A self regulatory voluntary organization of the
Advertising Industry.
Mission: To maintain and enhance the public's
confidence in Advertising.
The Advertising Standards Council of India (ASCI),
established in 1985, is committed to the cause of
Self-Regulation in Advertising, ensuring the
protection of the interests of consumers.
ASCI was formed with the support of all four
sectors connected with Advertising, viz.
Advertisers, Advertising Agencies, Media,
Agencies, Market Research Companies etc.© Prof.( Dr.) R. Bakshi- This ppt presentation (or any part) is not be used without written

 Truthful & Honest:Truthful, fair and non-derogatory to competitors.
Advertisements should not be misleading and plagiarized.
 Non-Offensive to public:Within the bounds of generally accepted
standards of public decency and propriety.
 Against harmful products/unsafe situations: Not used
indiscriminately for the promotion of products, hazardous or harmful
to society or to individuals particularly minors, to a degree
unacceptable to society at large.
 Fair in Competition: Ensure that Advertisements observe fair in
competition so that the consumer’s need to be informed on choices in
the market place and the canons of generally accepted competitive
behavior in business are both served.© Prof.( Dr.) R. Bakshi- This ppt presentation (or any part) is not be used without written

For further strengthen the process of constraining/reducing
misleading advertisements which harm the interests of
consumers ASCI announced NAMS to keep continuous track of
advertisements nationally.
As per the arrangement, AdEx India, a division of TAM, with
support from ASCI trained personnel, checks on a continuous
basis all newly released TV and Newspaper print
advertisements, specifically for violation ASCI’s advertisement
code related to unsubstantiated, misleading or false claims in the
advertisement.

1. All Newspapers and all TV Channels
across the country in all languages are
monitored for violation of the ASCI
Code
2. Advertisements seen as potentially
violating of ASCI Code are then
forwarded to ASCI on a weekly basis
3. ASCI takes suo-motu cognizance of Ads
potentially violating

Whatsapp: +91 77 100 12345
Phone: 1 800 22 2724
 ASCI Online: contact@ascionline.org
Web: www.ascionline.org

ASCI banned ads are from prominent companies like L’Oreal India, CavinKare, Vicco
Laboratories,Thyrocare, Amity University, Institute of Finance Banking and Insurance, Heinz India
P. Ltd (Complan),

 L’Oreal India P. Ltd (GarnierPureActive Neem+ Tulsi High Foaming Face):
Product claim,“removal of 99.9 % pimple causing germs” was found ambiguous
and unsubstantiated
 L’Oreal India Limited (New Garnier Action Facewash): Advertisement of New
Garnier Action Facewash,“1 tone fairer skin”, was not substantiated and was
misleading by ambiguity.
 CavinKare Pvt Ltd (Chik Egg White Protein Shampoo):The advertisement
claims “Isska Egg White Protein damage baalon ko jad se sire tak nourish karke
hair fall kam kare”, was not substantiated with data specific to Egg White Protein.
The visual depiction showing strengthening of the hair roots by the Egg White
Protein, resulting in reduction of hair fall, and strengthening of hair, was
misleading.

COMPANY: "LG Electronics India Pvt. Ltd.“
PRODUCT: "LG Water Purifier "
COMPLAINT:“It’s safer than plastic that decays with time,India's true
water purifier."
Nature of Complaint: "The ASCI approached the advertiser for
response in addressing the objections raised. Advertiser was offered
an opportunity for Personal Hearing.The advertiser had, however, not
responded to ASCI’s request.The CCC noted that no response was
received prior to the prescribed due date. CCC viewed the print
advertisement and upon careful consideration of the CCC concluded
that the claim made was not substantiated with supporting evidence
and likely to mislead consumers thereby denigrating the entire
category of plastic storage tanks.The claim,“India's true water
purifier”, was not substantiated with any verifiable comparative data of
the advertiser’s product and other competitor products.The
advertisement contravened ASCI Code.
RECOMMENDATION: Upheld

 COMPANY: "Amazon Inc “
 PRODUCT:"Lenovo Zuk Z1"
 COMPLAINT:“Amazon is giving Wrong information about the Product Lenovo
Zuk Z1.Amazon says that there is planned for os Upgrading but in the lenovo
smartphone official website it say there no planning any Upgradation os for
these phone Zuk Z1.So,Look on the Ad Provide by Amazon Misleading Practice
against Product.......”
 NATURE OF COMPLAINT: ""The Advertiser and Lenovo were approached
for response, and offered opportunity for Hearing.The advertiser nor the
seller representatives sought a personal hearing and Amazon submitted
written response, stating that product, MRP, Offer Price and the product
description are listed by independent seller directly and Amazon has no
direct control.The claim in the advertisement which is being objected has
been made by the independent seller and not by Amazon. CCC noted that
consumer has seen the product advertisement on the Amazon website. Upon
viewing the website advertisement, and on examining the complaint and the
response given by Amazon, and based on the evidence submitted, CCC
concluded that the Amazon website’s claim regarding the technical details
of the product is a misrepresentation and misleading and contravened the
ASCI Code.
 Recommendation: UPHELD

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L 11 Advertising and Society

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