Ethical Issues in
Advertising That Affect
Consumer Behavior
In this era of globalization and deregulation, advertising has acquired a new status. It
creates employment opportunities, provides information about products and services,
and contributes to economic growth.
What is Ethics in Advertising?
1 Ethics in Advertising
Means a set of well-defined principles governing communication between the seller and the buyer.
How Ethical Issues Arise in Advertising
1 Advertisement Claims
An example is the Nestle India Ltd (Maggie healthy soup) case, where misleading claims led to
health concerns.
2 ASCI Intervention
ASCI declared the advertisement as misleading and ambiguous, leading to necessary
modifications by Nestle India Ltd.
3 Consumer Impact
Consumers' trust and health can be affected by unethical advertising practices.
Unethical Advertising
When is Advertising Unethical?
It's considered unethical when it degrades or underestimates substitutes, gives false information, or fails to disclose
side effects.
Basic Principles of Advertising
Honesty Social Responsibility Decency
Truthful and transparent Considering the impact of Respecting cultural and social
communication with consumers. advertising on society and the norms in advertising content.
environment.
Advertising and Untruthful or Deceptive
Practices
Consumer Mistrust Abuses Involving Sales Forms of Untruthful
Promotions Advertising
Many consumers perceive ads as
dishonest or unbelievable. Contests, sweepstakes, and Exaggeration, misuse of
premium offers can be exploited testimonials, and unhealthy brand
unethically. comparisons are common
deceptive practices.
Forms of Untruthful Advertising
1 Exaggeration 2 Misuse of 3 Unhealthy Brand
Testimonials Comparisons
Using false claims about the
product's capabilities. Presenting false Comparing products in a
endorsements from misleading or unhealthy
individuals. manner.
Basic Principles of Advertising
Honesty Social Responsibility Decency
Truthful and transparent Considering the impact of Respecting cultural and social
communication with consumers. advertising on society and the norms in advertising content.
environment.
Advertising and Untruthful or Deceptive
Practices
Consumer Mistrust Abuses Involving Sales Forms of Untruthful
Promotions Advertising
Many consumers perceive ads as
dishonest or unbelievable. Contests, sweepstakes, and Exaggeration, misuse of
premium offers can be exploited testimonials, and unhealthy brand
unethically. comparisons are common
deceptive practices.
Forms of Untruthful Advertising
1 Exaggeration 2 Misuse of 3 Unhealthy Brand
Testimonials Comparisons
Using false claims about the
product's capabilities. Presenting false Comparing products in a
endorsements from misleading or unhealthy
individuals. manner.
Conclusion: Ethical Advertising
Matters
Why Ethical Advertising is Essential
Misuse of Testimonials
Testimonials are statements given by popular personalities claiming the superiority of
a brand. They are commonly used in advertisements for soaps, cosmetics, food
products, and more. However, the use of testimonials can sometimes be misleading
and may not accurately represent the product's quality or effectiveness.
by Syed Haider Ali
Misrepresentation
Competing Brands
Competing brands with similar names may claim that their product is of export quality, leading to
confusion among consumers. For example, the similarity between Nike and Hike can mislead
innocent customers.
Free Gifts, Discounts, and Contests
1 Deceptive Tactics
Advertisers often use free gifts, discount sales, and contests to attract customers. However, these tactics can
sometimes be used to deceive innocent consumers, such as through "Buy One Get One Free" offers or flat 50%
discounts.
Total Lies
False Health Claims
Advertisements for "energy drinks" and products that promise to make a person slim through drinks and belts often make
unverifiable claims. Examples include Horlicks, Complan, and Tiger biscuits.
Unhealthy Brand Comparisons
Creating Confusion
Nowadays, advertisers engage in unhealthy brand comparisons, leading to problems and
confusions for consumers. For example, comparisons between Colgate and Pepsodent
toothpaste can make it challenging to make the right product choice.
Surrogate Advertising
1 Indirect Promotion
Surrogate advertising is prominently seen in cases where advertising a particular product is banned by
law. For example, products like cigarettes or alcohol, which are injurious to health, are prohibited by
law in several countries.
Children in Advertising
Targeting Vulnerable Audiences
Perspectives on Ads for Children
Advocates Marketers
Advocates argue that children lack the knowledge and Marketers argue that children must learn through
skills to evaluate advertising claims and cannot socialization and acquire skills needed to function in
differentiate between programs and commercials. the marketplace.
Children's TV Watching
Behavior
Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000
commercials per year. 80% of all advertising targeted to children falls in four product
categories: Toys, cereal, candy & fast food restaurants.
by Syed Haider Ali
CHILDREN AND ADOLESCENTS AS
TARGET GROUPS
1 The Children's Market
Where resistance to advertising is weakest is the "pioneer for ad creep".
2 Kids' Perception
They can sing the jingles and identify the logos, but often don't understand the
underlying issues of advertising.
PERSPECTIVES ON ADS FOR CHILDREN
Advocates Argue Marketers Argue
Children lack the knowledge and skills to evaluate Children must learn through socialization and acquire
advertising claims. They cannot differentiate between skills needed to function in the marketplace.
programs and commercials.
CONCLUSION
1 Unethical Advertising 2 Call for Action
All forms of unethical or untruthful advertising Strict laws, advertiser moral responsibility, and
due to lack of strict laws, advertiser's motives, organized consumer approach are essential to
and consumer's casual approach. combat unethical advertising.
