Deception in advertising: A content analysis of the legal parameters of deception.

摘要

One of the primary attributes of a free market economy is the uninhibited flow of truthful information regarding the goods and services available in the marketplace (Azcuenaga 1995). This free flow of information, in the form of advertising, enhances market performance by informing consumers and enabling firms to compete equitably based on the attributes of their offerings. Studies reveal that, for the vast majority of marketing managers, the regulatory environment serves as the primary influence in advertising strategy development and decision-making (Davis 1994). However, in their theory development, behavioral researchers often ignore the legal aspects promulgated by the FTC. Furthermore, ambiguity in the FTC's guidelines regarding deception in advertising continues to impede advertisers in their ability to reduce the possibility of potentially deceptive advertising claims (Owen and Plyler 1991; Preston 1992; Davis 1994). Such ambiguity can cause potentially deceptive advertising claims to be presented by marketing mangers even though these managers believe that they are in full compliance with the law.; A review of the marketing literature reveals two apparent gaps that this study seeks to fill. These two gaps are: (1) research regarding deceptive advertising has been narrowly focused and (2) no comprehensive case research detailing recent FTC decisions exists in the marketing literature. This study addresses the first gap in the literature by analyzing the legal parameters associated with multiple dimensions of deception in advertising. This research addresses the second gap in the literature by conducting a comprehensive analysis of recent FTC decisions rendered.; The complete set of 299 administrative decisions, recorded in published volumes of Federal Trade Commission Decisions from 1990 through 1998, was examined. Using content analysis methodology, a number of the legal parameters involved in FTC decisions were analyzed. The results of this analysis revealed: (1) that, when faced with FTC litigation, the vast majority of advertisers enter into consent agreements (choose not to defend themselves); (2) that certain types of implied claims (Preston 1977) vary (a) according to the type of internal evidence presented by the FTC, and (b) according to the industry category included; and (3) that the severity of FTC orders varies (a) according to the existence of multiple implied claims, and (b) according to the type of industry involved.; This study has expanded the existing research by providing insight regarding the legal parameters associated with three dimensions of deception in advertising: (1) evidence of deception; (2) implied advertising claims; and (3) regulatory predictability. Based on the research findings, this study offers an updated typology of relevant implied claims.