CHAPTER 14: REGULATIONS AND ETHICAL CONCERNS

CRITICAL THINKING EXERCISES

1. In labeling food products, marketers walk a fine line between promoting the product and truth in content. Phrases such as low sodium, fat free, no sugar added, and light may give the impression that a food is healthful, but not reveal the entire truth. How often do you read package labels and make purchases based on their content? On your next trip to the grocery store, examine various labels that have one of the words identified earlier in this question and compare it to other brands. Does it actually contain less than a competing brand?

2. Reread the section Deception Versus Puffery. Find three advertisements that you think are examples of either deception or puffery. How difficult is it to differentiate between the two? When does an ad cease to be puffery and become deceptive?

3. One of the industries closely watched by the FTC is the weight-loss industry. Find three advertisements from magazines, newspapers, or television that deal with weight loss. What claims were made? Do you believe the claims are truthful and legitimate? How do you, as a consumer, distinguish between what is truthful and what is deceptive?

4. Advertising directed toward children remains a hot topic among parents and educators. Many feel that advertising unfairly targets children and creates materialistic desires. By the time a child is three years old, she already knows many brands of products, such as McDonalds. What is your opinion of advertising to children? Is the current regulation enough, or should it be more stringent?

5. One of the criticisms of advertising is that it causes people to buy more than they can afford. Each year a large number of people in United States declare bankruptcy, often because they have overspent. Do you agree that advertising causes people to buy more than they can afford, or is advertising just responding to the materialistic desire of individuals? Defend your response.

6. Advertising does increase the cost of goods and services, but a common defense is that advertising provides people with knowledge about availability of products, which allows consumers to make more intelligent decisions. Do you think this is a valid defense of advertising? Why or why not? What other defense could you offer to support why advertising is important?

7. Think about advertisements you have seen or heard recently and identify one that you believe is offensive. Why was it offensive? Why do you think the advertiser ran the ad if it offensive? Do you think offensive ads can be effective? Why or why not?

8. What is your opinion of alcohol and tobacco advertising? Should alcohol and tobacco companies have the same freedom to advertise as other product manufacturers? Do you think it is a danger for children to see alcohol or tobacco ads? Does it influence their desire to use these products?

9. Using sex to sell products is another area that many consumers find offensive. Locate two print ads or television ads that are highly sexual in nature, one that you consider offensive and one that you consider is appropriate. What makes the difference? Are there too many ads that use sexual themes?

10. You have seen advertisements by attorneys and medical professionals. Discuss your opinion about these advertisements? Do you think ads by attorneys just increase the number of lawsuits and bankruptcies? Why do medical professionals such as doctors and dentists advertise? Does it affect your opinion of their professionalism? Why or why not?