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Unethical advertising and marketing practices used and their effects
This document discusses unethical advertising and marketing practices. It begins with an introduction to business ethics and types of unethical advertisements. It then summarizes three specific cases: Apple agreeing to pay a $2.25 million fine for falsely advertising iPads as 4G, Siri being sued for exaggerated advertising claims, and GlaxoSmithKline being fined $3 billion by the FDA for improper marketing and unethical behavior including promoting off-label drug uses. The document emphasizes that ethical decisions should consider utilitarian and rights-based approaches.
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Unethical advertising and marketing practices used and their effects
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- 2. AGENDA INTRODUCTION TYPES OF UNETHICALADVERTISEMENTS 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 abranch 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 ithas 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 UNETHICALADVERTISEMENTS 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 AGREEON $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 AGREEON $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 SUEDAGAIN 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 SUEDAGAIN 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 $3BILLION 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 $3BILLION 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
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