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A TCPA for the 21st Century: Why TCPA Lawsuits Are On the Rise and What the FCC Should Do About It
Monica Desai, Ryan King, Maria Wolvin and Maxine Martin, International Journal of Mobile Marketing, Vol. 8, No. 1, Summer 2013
Litigation related to the Telephone Consumer Protection Act (TCPA) has increased exponentially over the past several years, by more than 60 percent by some estimates in 2012 alone.
Litigation related to the Telephone Consumer Protection Act (TCPA) has increased exponentially over the past several years, by more than 60 percent by some estimates in 2012 alone. The law was written more than two decades ago for yesterday's technology to prevent harassing and unwanted calls to consumers. Some plaintiff's lawyers are taking advantage of the well-intended but outdated TCPA statutory language to invent novel legal theories under which to sue companies that are communicating with consumers in ways that were not invented twenty years ago. The Federal Communications Commission must move quickly to clarify the meaning of “capacity” under the TCPA by taking into account today's technology. The FCC should start by clarifying that modern dialing technologies are not “automatic telephone dialing systems” under the TCPA unless they possess the current ability “to store or produce telephone numbers to be called, using a random or sequential number generator [and] to dial such numbers.” Without regulatory changes frivolous lawsuits will continue and substantial resources will continue to be wasted, hurting consumers and businesses alike.
PP for 'product placement' or 'puzzled public'? The effectiveness of symbols as warnings of product placement and the moderating role of brand recall
Tina Tessitore and Maggie Geuens, International Journal of Advertising, Vol. 32, No. 3, 2013, pp. 419-442
This research examines the effectiveness of the European ‘PP’ symbol, recently introduced as a warning of product placement in locally produced television programmes.
This research examines the effectiveness of the European ‘PP’ symbol, recently introduced as a warning of product placement in locally produced television programmes. The authors test whether this symbol counters the pervasive effect of product placement on purchase intention. Study 1 shows that the symbol does not prompt resistance to the influence of product placement. This is because the majority of consumers neither notice nor comprehend the symbol. In Study 2, two training methods are tested to increase the symbol’s effectiveness: (1) verbal label training and (2) a combination of verbal label training and information training. The addition of information training is necessary to increase the symbol’s noticeability, whereas verbal label training helps increase the symbol’s comprehensibility and effectiveness in activating persuasion knowledge and decreasing purchase intention. Finally, the results provide evidence that brand recall is crucial for resistance to product placement, suggesting the importance of brand recall as a moderator of resistance processes.
Observations: Unpaid product placement: the elephant in the room in UK TV's new paid-for product placement market
Chris Hackley and Rungpaka Amy Hackley née Tiwsakul, International Journal of Advertising, Vol. 31, No. 4, 2012, pp. 703-718
Paid-for product placement was permitted for the first time on commercial TV in the UK by media regulator Ofcom in February 2011.
Paid-for product placement was permitted for the first time on commercial TV in the UK by media regulator Ofcom in February 2011. At the time of writing, some 12 months later, estimates suggest there have been fewer than 20 paid placement deals, amounting to revenue less than 2% of the £150 million that optimists estimated the industry to be worth. In this commentary we draw on confidential and informal interviews with industry insiders to set previous academic research in the field within the UK’s unique regulatory context, and we highlight problems inherent in the new industry. Foremost among these is the reluctance of the broadcasters and Ofcom to acknowledge that the free prop supply system that has provided branded scene props to UK productions, including the BBC, for some 30 years, has been and continues to be a de facto product placement industry. Given that, even in a mature paid-for placement market such as the US, industry insiders estimate that 80% of brands on TV are not paid for, we argue that unpaid product placement, also known as free prop supply, is the elephant in the room in regulation and academic research. We make suggestions as to how the impasse in the UK TV product placement industry might be resolved, and we outline ways in which academic research might play a supporting role.
Impacts of advertisements that are unfriendly to women and men
Corine Van Hellemont and Hilde Van den Bulck, International Journal of Advertising, Vol. 31, No. 3, 2012, pp. 623-656
Taking Belgium as a case in point, this study analyses, first, tolerance for advertisements unfriendly to women and men as expressed by advertising and marketing professionals, consumers and gender equal opportunity workers.
Taking Belgium as a case in point, this study analyses, first, tolerance for advertisements unfriendly to women and men as expressed by advertising and marketing professionals, consumers and gender equal opportunity workers. Second, it compares which types of unequal gender portrayal raise concerns with which sector of respondents. Finally, it analyses the differences in adherence of the three sectors to the two main policy solution paradigms proposed in the 2008 European Parliament Resolution on ‘How marketing and advertising affect equality between women and men’. Results suggest a degree of tolerance that varies significantly according to sector, language, gender and age. Overall, respondents express more concerns regarding traditional sex roles in advertising than regarding nudity, unattainable beauty standards or gender stereotypes, and prefer gender-and-advertising literacy programmes and awards for advertisements that break through gender stereotypes over stricter ethical and/or legal regulations. These findings should prove useful to advertising and marketing professionals, national advertising regulatory bodies and policy makers.
The evolution of self-regulation in food advertising: an analysis of CARU cases from 2000-2010
Mariea Grubbs Hoy, Courtney Carpenter Childers and Margaret Morrison, International Journal of Advertising, Vol. 31, No. 2, 2012, pp. 257-290
The FTC envisions the Children’s Advertising Review Unit (CARU) and the Children’s Food and Beverage Advertising Initiative playing lead roles in self-regulatory efforts to address advertising’s contribution to childhood obesity.
The FTC envisions the Children’s Advertising Review Unit (CARU) and the Children’s Food and Beverage Advertising Initiative playing lead roles in self-regulatory efforts to address advertising’s contribution to childhood obesity. Peeler (2009) notes that CARU’s decisions provide comprehensive guidance to advertisers. Limited research has investigated those decisions. Using thematic analysis, this study examines CARU case reports from 2000 to 2010 involving food marketers from a longitudinal perspective. This study found that CARU has been responsive to the emergence of childhood obesity as evidenced in its increased pursuit of nutrition-related complaints, case language and Guidelines revisions. Suggestions for strengthening CARU, the CFBAI and media clearance are offered.
Regulating Political Symbols: China's Advertising Law and Politicized Advertising
Xin Zhao and Jeff Wang, Journal of Advertising Research, Vol. 51, No. 4, 2011, pp. 624-633
Advertising regulation in China contains political and ideological nuances. Despite evolution of its advertising law and years of practice dealing with various codes, advertisers still find it daunting to decipher the regulations after years of practice.
Advertising regulation in China contains political and ideological nuances. Despite evolution of its advertising law and years of practice dealing with various codes, advertisers still find it daunting to decipher the regulations after years of practice. The ideological components of China’s advertising law require careful analysis of political correctness and cultural appropriateness. In this paper, the authors use semiotic analysis to consider both advertising that has violated ideological rules and advertising that has successfully transmitted desired ideological messages. And the authors have selected four advertising cases that help clarify the perceptions regarding political ideology in China.
Making the Case for Enhanced Advertising Ethics: How a New Way of Thinking About Advertising Ethics May Build Consumer Trust
Wally Snyder, Journal of Advertising Research, Vol. 51, No. 3, 2011, pp. 477-483
This article presents the case to advertising professionals for the need to enhance advertising ethics in order to build consumer trust in the company and its brands.
This article presents the case to advertising professionals for the need to enhance advertising ethics in order to build consumer trust in the company and its brands. It cites research showing that consumers do not trust advertising much of the time. Key ethical concerns are discussed, including children's advertising, the blurring of advertising with news and entertainment, and behavioral advertising. In the end, it is the responsibility of the ad professionals to resolve ethical concerns proactively, and they must be encouraged to do so from the top down, and given clear permission to express their concerns.
Online Privacy Trustmarks: Enhancing the Perceived Ethics of Digital Advertising
Andrea J.S. Stanaland, May O. Lwin and Anthony D. Miyazaki, Journal of Advertising Research, Vol. 51, No. 3, 2011, pp. 511-523
Consumer views of advertiser ethics are of industry concern due to growing consumer angst regarding data privacy and behavioral advertising.
Consumer views of advertiser ethics are of industry concern due to growing consumer angst regarding data privacy and behavioral advertising. Several privacy trustmarks have been created to address consumer concerns, potentially acting as seals of approval regarding privacy practices. The authors examine whether a privacy trustmark's ability to influence consumer perceptions of advertiser ethics and privacy concerns is moderated by consumer desire for privacy and attitude toward advertising in general. Using an online advertising context, the results show that a privacy trustmark can enhance the perceived ethics of an online advertiser for certain market segments but not for others.
Deceptive advertising and abnormal stock returns: An event study analysis
Jaeseok Jeong and Chan Yun Yoo, International Journal of Advertising, Vol. 30, No. 3, 2011, pp. 509-535
This study examined the impact of deceptive advertising on the abnormal stock returns of firms. Using an event study analysis with 101 cases from the FTC database over the period 1987–2005, the FTC rulings on deceptive advertising were found to have the negative effects on the abnormal stock returns of firms.
This study examined the impact of deceptive advertising on the abnormal stock returns of firms. Using an event study analysis with 101 cases from the FTC database over the period 1987–2005, the FTC rulings on deceptive advertising were found to have the negative effects on the abnormal stock returns of firms. Among the firm-specific factors examined in this study, the amount of advertising expenditures played a role in alleviating the impact of deceptive advertising on the abnormal stock returns, and the firms charged with consent agreements alone were found to lose less firm value than those charged with additional actions by the FTC. Results also showed that the negative effects on the abnormal stock returns created by the FTC actions did not quickly disappear afterwards. These results imply that marketing managers should exercise caution in designing advertising messages that may or may not intend to violate the FTC rules and regulations on deceptive advertising.
Not seeing the wood for the imaginary trees. Or, who’s messing with our article? A reply to Ambler
Agnes Nairn and Cordelia Fine, International Journal of Advertising, Vol. 27, No. 5, 2008, pp. 896-908
Ambler has been very quick to comment on our recent paper in this journal (Nairn & Fine, IJA, 27(3), 2008) in which we discuss the implications of recent findings from the cognitive sciences for the ethics of advertising to children.
Ambler has been very quick to comment on our recent paper in this journal (Nairn & Fine, IJA, 27(3), 2008) in which we discuss the implications of recent findings from the cognitive sciences for the ethics of advertising to children. We welcome this opportunity to address some of the many misunderstandings, misattributions and misplaced criticisms that constitute Ambler’s commentary, as well as to re-emphasise and expand on some of the important points from our paper. First, we briefly review the line of argument of our original paper. Those who have read Ambler’s response need fear no boredom through repetition, as our thesis bears little resemblance to the version of it provided by Ambler. Next, we address the seven issues characterised by Ambler as ‘contentious’, a description that turns out to depend on fundamental mischaracterisations of our account. Finally, we reiterate the central conceptual and practical points of our paper. Discussion of the effects and ethics of marketing to children will continue to be incomplete so long as discussants fail to acknowledge, and address in the form of a mature debate, the role of implicit cognition in consumer psychology.
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