This document discusses ethics in advertising. It defines advertising and false advertising, and discusses how false claims can backfire for companies. It also outlines some common unethical practices like puffery, bait-and-switch tactics, and advertising directly to children. The document concludes by listing some ethical standards for advertising, including telling the truth, substantiating claims, avoiding false competitor comparisons, and refraining from tasteless or offensive content.

1. Ethics In Advertising

2.  Ethics In Advertising:
 Advertising: the practise of attracting public attention to a
product or business for the purpose of increasing sales.
 False advertising: making statement about product that the
advertisers knows that are not true.
 How it works, making, affect on people ( ex: cigarette
companies).
 Consequences:
Consumers eventually figure out the truth and backlash is applied
which can be severe.

3.  Ethical Problems In Advertising:
1) Puffery statements that are not outright
lies(exaggerations)
Ex: gum company exaggerating about best taste of their
gum.
Note: FTC(Federal Trade Commission) regulates
advertisings.
2) Bait and switch: advertising a product at low price while
stocks are less ( luring costumers to buy more expensive
items).
3) Advertising to children: law is passed to protect children
from deception and manipulation.
4) Telemarketing: selling directly to people through
unsolicited phone calls, emails, faxes.
(Laws allows people to sign up to do not call list).

4.  Ethical standards:
1) Truth: Advertising shall tell the truth, and shall reveal significant
facts, the omission of which is mislead.
2) Substantiation: Advertising claims shall be substantiated by
evidence in possession of the advertisers.
3) Comparisons: Advertising shall refrain from making false,
misleading, or wrong claims about a competitor of products.
4) Bait advertising: Advertising shall not offer products for sale unless
such offer constitutes a bonafide effort to sell at much lower price.
5) Testimonials: shall be limited to those of competent witness who
are reflecting a real or honest experience.
6) Taste and decency: Shall be free of statements, illustrations, which
are offensive to good taste or public decency.

5.  Limitations: