Considering advertisement to distinguish your product from your competitors is the norm across the world. While some brands make use of humor others use a direct factual approach to convey their message. Apart from that, there are also these deceptive advertisements which mislead people and to deal with such dirty tactic, advertisements, be it the conventional ones or the digital form, need to be strictly regulated.
Without supervising we would see aggressive ads in every nook and corner and get fooled by false information. To save from a world of marketing haven, it is essential to track the authenticity of the advertisement.
We cannot deny the fact that advertising enhances the market performance by offering useful information to consumers. But it is imperative to understand that advertising can also adversely affect market performance. This happens when brands try to sell their product/ services using ill strategies and fraudulent messages on which consumers are induced and rely on the outcome. Hitting the weak point of the genuine consumers and rendering false promises is a crime of its own kind. And when this happens you can experience the market failure.
According to the Global Advertising Lawyers Alliance, advertising in the United States is regulated through a series of federal, state and local actions and agencies. They have jurisdiction over advertisements that are false, deceptive, misleading or unfair.
In the United States, there is an ability to bring consumer actions which can be brought to both federal and state courts around the country. While in the UK, advertisement regulation is controlled through a combination of codes of practice and legislation.
In any commercial many claims can be made that are misleading purposely. Advertisers try to balance it by having fine print that more or less explains their claims, but the fine print is not necessarily viewed by the majority of people since it’s brief and hard to see. This gives the advertisers a loophole to essentially get away with the misleading advertisement on a regular basis. The victims are the ones who have to bear the brunt. Stricter regulations will protect consumers from misleading and false advertisements.
There have been cases of misleading advertisements from big brands such as Subway and Taco Bell. Many such cases have been exposed in the video below.
Most of the time, any advertisement you see or hear is a subject to the state regulation laws, corresponding legislative acts, international contracts and in some cases, self-regulatory organizations of the ad industry.
What is advertising self-regulation?
It is the system in which the advertising industry actively regulates itself to promote ads which are legal, decent, honest and truthful with respect with respect to the principle of fair competition. This is widely recognized by many international and national organizations such as the European Commission, APEC, OECD and more. Advertising practices are monitored and undergo prompt discontinuation of those ads in conflict with established industry standards. This system by far is considered the most trusted, impartial and relevant, complementing the existing laws.
Fortunately, today advertising regulation has become the subject of interest on national and international levels. There is still a lot to be examined in this regard and some of the recent actions such as the enforcement of GDPR has given hopes. All we can wish is for an era of ethical ads, secured personal data and responsible branding. If there are no strict measures on regulation we all could become a victim of the fancy world of marketers.