Introduction
Ethics has always been an important aspect of all business activity, although the term has meant different things at different times in different countries to different people. However, since ethical concerns are an inseparable element of business, advertising cannot ignore them. Unfortunately, the advertising industry has seldom bothered to look beyond immediate marketing goals. The argument in the industry is that it is the government’s job to judge what is right and what is wrong. Evading its own responsibility for regulation, the industry has undervalued trade values and agencies have damaged their balance sheets.
For any business, the customer is very important, and entrepreneurs try to communicate with all their target customers using means of communication such as advertising and sales promotion. Advertising is a very powerful tool and the most used.
Benefits of advertising
or Communication
The organization has to attract the customer and create a market for its products. For this purpose, advertising is the most powerful and widely used tool to communicate messages about products/services to a large target audience.
o To raise the standard of living
In our developing economy, advertising with its micro and macro level influences exerts vast and varied influences which have played a key role in raising the standards of physical and material well-being in Indian society.
o To make the market competitive
In India, one finds that many innovations are being introduced that have changed the market structure of the seller’s market and thus more competitive market conditions are the result.
o Product differentiation
It is a fact that advertising generates variety of products through the real and psychological differentiation of the product.
Critical evaluation of advertising.
Although many benefits are achieved through advertisements, the advertising message is becoming more and more exaggerated. To gain competitive advantage, advertising magnifies unimportant differences, resorts to clever and misleading product promises, and claims ever more incredible benefits. Many ads are found by the customer to be false, misleading or misleading. Consumers are unsure whether or not the performance of a purchased product will meet their needs. If they find that the product lacks the quality, advantage, durability, etc., as advertised, they may not buy it again and develop an aversion to all other products from that company.
unethical advertising
Advertising is considered unethical in the following situations;
o When you have downgraded or undervalued the substitute or rival product.
o When giving false or misleading information about the value of the product.
o When it does not provide useful information about the possible reaction or secondary effects of the product. Y
o When immoral.
Ways to mislead consumers.
o Many times, merchants lure customers into their stores by advertising products at a rock-bottom price, but only stock a handful of those sale items in the store. When advertised products sell out, consumers turn to higher-priced stock or lower-quality products.
Retailers must ensure that a reasonable supply of products is available during sales, and retailers must not deliberately avoid this. Retailers must make it clear in the ad how many items for sale are available or when the sale ends.
o The offer to sell must be for a limited period. The advertisement must state that the offer to sell is for a limited period of time. The offer period must be made clear in the advertisement only when the advertised products are available for a limited period or stock is limited.
o Merchants often offer a negligible price reduction. To illustrate, a merchant may advertise that the price of the product is reduced to Rs 99.95, when the normal selling price is Rs 100. The merchant must include the regular selling price and the discounted price in his offer. The merchant’s offer to sell is misleading if the merchant claims the product is below cost, when the price is not below cost after discounts, rebates, and other allowances, it is misleading if the merchant simply shows a higher price fictitious as normal sale price in the ad.
o The advertisement must clearly indicate the total price of the goods or services. Any price comparison must be truthful and must not intentionally or unintentionally mislead consumers. Under the Fair Trade Practices Act, retailers have an obligation to ensure that they do not mislead or make false representations to customers regarding the price of products. Consumers who shop and compare the prices of various products are less likely to be misled by misleading claims. Consumers should also be aware of reasonable product prices and not accept advertised discounts at face value.
o While many sales are legitimate or genuine, consumers should not be lured by such sales offers, ie, “Hurry up…there are only a few days left for the sale.” Consumers should know what to expect when retailers put items on sale. and how to avoid being fooled by discount ads.
Remedies to beat misleading advertising
o Cease and desist orders
Cease and desist orders, which prohibit the defendant from further engaging in deceptive practices, are actually the only formal procedure established by the Federal Trade Commission Act to enforce the ‘deceptive acts and practices’ prohibition.
or Return
Restitution means that the consumer is compensated for any damage caused by the product whose announced claims have not been duly substantiated. Restitution is rarely considered due to its seriousness.
o Affirmative disclosures
If an advertisement has provided insufficient information to consumers, an affirmative disclosure may be issued. Affirmative disclosure requires a ‘clear and conspicuous disclosure’ of the omitted information. Often the information involved relates to the deficiency or limitations of the product or service, possibly related to health or safety issues.
o Corrective Advertising
Corrective Advertising requires advertisers to verify past deception by making the appropriate modification in any of their future commercials.
Self-regulation in Advertising
It is our responsibility to regulate our operations. And we must do it ourselves. Self-regulation is not a quick fix; it will be completely ineffective without the commitment and integrity of each and every one. Self-regulation may require the following;
o The development of a self-regulatory code of conduct covering all forms of media that is sensitive to ethics, legality, decency and truthfulness in advertising.
o Provision for monitoring and accountability, including a policy that allows the removal of ads that violate the code.
o Greater participation of advertising professionals in the regulatory process.
o The inclusion of non-industry actors in the process
o Sensitization of consumers about the self-regulation system.
o Simplification of the ad claim process.
o Transparency throughout the system.
These reforms will accomplish three goals. They will hold the industry accountable for its actions. They will make regulators and critics think twice before attacking the industry, and ultimately make the public trust ads, advertisers and agencies.
conclusion
Reputable companies and advertising agencies avoid telling lies. They realize the cost of being caught. A trusted tooth can be much more costly than the failure of an advertising campaign or even a brand. The challenge advertisers and agencies face is ensuring that ads reflect our values. We must make an effort so that “advertising” does not remain a dirty word.
