Essay Sample on Truth in Advertising

Introduction

Consumer culture and advertisements have become a significant part of many people's lives in today's globalized era. Advertising plays a critical role in enabling companies to develop a strong brand name for themselves and their products. Creating awareness is especially important in today's competitive business environment where visibility can make the difference between success and failure. Generally, advertisements are used to persuade, remind and inform consumers about the services or products offered by a given organization. The power of advertising lies in its ability to convince consumers, which in turn leads to the prospect of increased sales since the buyers will respond by making purchases when they are convinced (Ullah & Hussain, 2015). Therefore, the advertisements should be designed in a manner that offers complete and accurate information about a product or service so that consumers can make their buying decisions from an informed perspective (Swindle, 2003). However, there have been numerous reports from various quarters about an unethical behavior that exists within the advertising industry. Advertisers have been accused of a range of wrongs such as sexism, manipulation, deceit, and the popularization of harmful products. The most prevalent of issues in this industry is deceptive advertising, which plays a role in misleading the consumers and influencing unfair competition practices among other issues. Deceptive advertising is when a firm misrepresents the attributes of an advertised product to the consumers, and hence the expected utility from consuming the product or using the service (Ullah & Hussain, 2015). As the level of competition increases, false advertising is gaining traction as marketing departments look for every opportunity to increase the market share and outwit the rivals. The primary aim of advertising is to promote a service or products, and hence promoters are prone to using exaggeration in extolling the values of a product Although false advertising is illegal in its most blatant form, companies still find subtle ways of introducing misleading information without looking like they are engaged in outright deception. Advertising has an undeniable effect on the choices of consumers, and hence it is vital to have the industry regulated and monitored to ensure that the advertisements are true.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Regulating advertisements will help in regaining lost consumer confidence. Some promoters have helped advertising to earn a bad public image by engaging in deceptive tactics (Rotfeld & Taylor, 2009). The possibility of manipulation by hidden messages is the most significant of consumer fears when it comes to advertisements. The false messages have increased the talk of regulating advertisements for simple deception to proposing new policies to govern product placement. Approximately 50% of American consumers do not trust what they hear, see, or read in advertisements (Gammon, 2014). 44% consider advertisements as dishonest while 58% have suggested that there should be strong requirements for advertisers to prove their claims. It is evident that consumers are aware of and wary of the effects of false advertising via different media outlets. When customers are mistrustful about a particular product, they will have reservations, and that will lead many to avoid purchasing the item. The statistics show that the tendency to believe in an advertisement depends on the age and level of education of consumers. 65% of the postgraduates in a study suggested that advertisements cannot be trusted while 44% of individuals with a high school education had the same opinion (Gammon, 2014). Young people, 18-34 years, were also less likely to believe in advertisements compared to people between the ages of 35-54 (Gammon, 2014). Regulation would help to clear the air and reassure consumers that what they hear, see, and read is accurate as advertised, which will help them to make informed decisions.

Truth in advertisements should be regulated and monitored because that is the role of the government in protecting its citizens from potential harm. There are many agencies whose roles include the regulation of advertising amongst other marketing activities since deceptive advertisements can have far-reaching consequences in some situations. The government is there to shield citizens from anything that may cause them loss or harm, such as shady business practices. The government, via the Federal Trade Commission, monitors anti-competitive business practices and promotes consumer protection. The FTC's law enforcement initiatives focus on the accuracy of the claims made for drugs, foods, dietary supplements, among other products that promise health benefits. The body also regulates children advertising, the claims of high-tech products, and alcohol (Swindle, 2003). According to FTC regulations, when consumers hear or see an advertisement on the internet, television, radio, or other forms of media, it must be true, not misleading, and backed by scientific evidence when appropriate (Swindle, 2003). The FTC enforces the laws that ensure advertisers remain truthful to their claims regardless of whether the advertisement was in a magazine, newspaper, in the mail, online, or on billboards. The body is especially concerned about the advertising claims that could affect the health of the consumers, or cause them significant amounts of money (Swindle, 2003). Things like over-the-counter drugs, nutritional supplements, alcohol, and high-tech products will affect the health of an individual as well as their finances. When the FTC identifies a case of false advertising, it files actions with the federal district court to kick-start the proceedings to stop the activity and punish the responsible organization. The presence of the FTC is reassuring since it protects the consumers from bodily harm or financial loss. The government's mandate is to ensure that citizens are protected from any harm, including deception.

Monitoring and regulation will allow consumers to know the advantages and disadvantages of a product to their health. Advertisements relating to supplements and nutrition are, particularly, important to the FTC due to their sensitive nature. When such advertisements are factual, they will not cause any harm to the consumer and vice versa. One of the most critical issues facing America today is obesity. The situation has led to an increase in companies, and products, that purport to aid people in weight loss. There is evidence that several companies, to be more appealing to the consumers, are using companies that promise false and unattainable results (Swindle, 2003). Mark Nutritionals advertised an evening weight loss liquid that consumers were advised to take at least three hours before drinking or eating, and before going to bed. The product was widely advertised across many radio stations with testimonials from popular disc jockeys. The advertisements claimed that users of the product could lose weight without exercising or dieting, and while still consuming high-calorie foods. In fact, the slogan of the advertisement was 'lose weight while you sleep (Swindle, 2003).' Obesity is a critical health concern and hence lying that a product is beneficial could prevent consumers from seeking out other helpful measures, which puts them at risk. There has been increased spending on such health products as consumers attempt to manage their health minus the expensive doctor visits and prescriptions (Swindle, 2003). The FTC froze the assets of the company after it announced that the claims made on the weight loss product were unsubstantiated and false. Under a well regulated and monitored structure, the company could not have made such a false claim since it would have been quickly identified, and there could have been clear guidelines in place. Apart from health supplements, food commercials that have false information on nutrition claims could also end up affecting the health of consumers. For example, if the sugar amount is more than advertised, it may affect a diabetic who take the product believing that it is low in sugar. Proper regulation and monitoring of advertisers' claims, therefore, will shield the health of consumers from the potential harm of deceptive advertising.

Regulating the truth in advertisements will help in curbing unfair competition practices. The government is responsible for ensuring that there is a level playing field where businesses can compete equally. The vast majority of unfair business practices arise from misleading and aggressive advertisement tactics (Cheng, 2018). A practice is said to be misleading when it offers untrue or false information that is likely to deceive the consumer. Misleading information may be relating to the nature of a product, the core characteristics of a product, the need for repair or servicing, the trader, the price, and various other categories ( Ullah & Hussain, 2015). When companies make false claims about their products, they could impact the buying habits of consumers, which will affect competitors. A company that makes false claims during advertising is likely to attract many customers who fall for the misleading tactics. These misleading advertisements use they allow the advertising company to make money off a lie while other businesses are investing money in research and development to develop quality products. If the competitors can prove that the false statements made by the advertisers made a significant impact on consumer decisions, and hence affected their business activities, they can take the case to court under the Lanham Act (Cheng, 2018). If the profits of a company were affected by the false claims of an advertises, the organization could sue. Companies that engage in deceptive and unfair business practices hurt the businesses that are operating honestly in the market. False advertising by one company can start a chain reaction that spreads to other organizations. When one company is successfully using falsehoods in its commercials, others may decide to follow suit, instead of investing money in research and other areas of product development. Regulation will help to ensure that the information in advertisements is factual to avoid a situation where one unethical business thrives at the expense of other enterprises.

Government monitoring and regulation of advertisements are good because self-regulation is flawed. Opponents of self-regulation opine that the advertisers cannot be the jury, judge, and defendant since there will be a conflict of interest (Hoek & King, 2008). Advertisers will always find subtle ways of enhancing or exaggerating their claims while erring on the side of caution. A close analysis of the former self-regulatory system in Australia revealed that advertisers had a way of circumventing the advertisement codes. Western countries such as the US have adopted a self-regulatory framework in advertising. In this approach, the advertisers are responsible for developing and implementing the accepted codes of practice in the industry. The self-regulatory bodies are also responsible for dealing with any breaches to the rules that may occur. Self-regulation proponents have suggested that this framework helps the advertisers to address complaints speedily, and it can adapt to the changing social values (Hoek & King, 2008). However, the self-regulatory framework does not always work as planned due to biases, and hence it is vital for the government to regulate activities.

Advertisements ought to be monitored and regulated because it will ensure that cases of obesity are reduced. Advertisements are meant to motivate people to purchase a particular product or serv...