Download LEAE Professor Notes

Document related concepts

Infomercial wikipedia , lookup

Shopping wikipedia , lookup

Visual merchandising wikipedia , lookup

Planned obsolescence wikipedia , lookup

Direct marketing wikipedia , lookup

Billboard wikipedia , lookup

Food marketing wikipedia , lookup

Integrated marketing communications wikipedia , lookup

Aerial advertising wikipedia , lookup

Ambush marketing wikipedia , lookup

Product planning wikipedia , lookup

Green marketing wikipedia , lookup

Product placement wikipedia , lookup

Consumer behaviour wikipedia , lookup

Youth marketing wikipedia , lookup

Neuromarketing wikipedia , lookup

Sensory branding wikipedia , lookup

Advertising campaign wikipedia , lookup

Marketing channel wikipedia , lookup

Ad blocking wikipedia , lookup

Television advertisement wikipedia , lookup

Advertising management wikipedia , lookup

Online advertising wikipedia , lookup

Advertising wikipedia , lookup

Targeted advertising wikipedia , lookup

Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Advertising (Criticism)
Advertising has been attacked by critics who charge that it goes beyond selling products or
ideas to exert a powerful influence on society. According to this view, advertising in its many
forms is so pervasive and so persuasive that it has the ability to shape social trends and
mold personal attitudes. This influence is unwanted, intrusive and often detrimental to
society, say critics. Defenders respond that, in addition to the economic benefits to
improved competition, lower prices and more product choices, advertising promotes
freedom of speech, as goods and services. Furthermore, advertising is actually influenced by
society because it acts as a mirror in reflecting certain societal changes. For example,
advertising must continually adjust their language and illustrations to conform to changes in
socially acceptable practices.
This ongoing debate over the proper role of advertising in society is entirely separate from
the ethical issues of deceptive or fraudulent advertising and it boils down to one basic
question: Does advertising help or hurt society?
Language and Literacy
Advertising sometimes twists words or changes spelling and grammar to make a point.
Advertising copy is accused of playing fast and loose with the rules of language, which
encourages the audience to do the same. Some critics go further, complaining that people
have less need for readily available in the electronic media both by advertising and by
sponsoring news and entertainment programs. Why do ads bend grammar and use slang?
Sometimes it’s to avoid sounding stilted, sometimes it’s for emphasis and sometimes it’s to
sound like the people you want to reach. “There’s no real intent to damage the language.”
When advertisers want to reach teenagers they try to adopt teenage speech patterns,
advertisers often use unorthodox spelling so a word can be used as a legal part of a brand
name as a trademark.
Manipulation and Exploitation
Does advertising manipulate people into buying what they don’t need? Critics contend that
advertising is so powerful and persuasive that people have no choice but to buy what they
see advertised, regardless of their actual need for these products. Advertisers exploit our
inadequacies, anxieties, hopes and fears. Advertisers, using psychological or emotional
appeals, get us to buy their products by making us feel that these products help us gain
status, acceptance, even love.
On the other side of the controversy, defenders acknowledge that the whole reason to
advertise is to persuade. There’s no magic or dishonesty about using the marketing mix to
identify customer needs, to create an appropriate product and to advertise the product.
Defenders contend the advertising offers people the information they need to choose
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
among products in the marketplace. Advertising can be seen as building consumption not by
making people purchase what they don’t need but by making the market more efficient for
both consumer and producers by offering information about the product, its availability.
No amount of advertising pressure can force people to buy something they don’t want and
anyone who is persuaded by advertising to buy a bad product (or a product that doesn’t
meet a legitimate need) won’t make that mistake again. Far from being helpless to resist
advertising’s persuasive power people are able to ignore or discount advertising messages,
by zapping television commercials, turning down the radio, or simply turning the page in a
magazine or newspaper. Most consumer are savvy about what they see advertised and
research indicates that children understand and are skeptical about advertising’s persuasive
Advertising Old People and Minority Groups
Critics say that ads often portray entire group of people in stereotypical ways showing
elderly people only as senile for example. These advertising can reinforce negative or
undesirable views of these groups. This can contribute to discrimination against them. By
presenting minorities and women more realistically, advertisers can significantly expand
their markets for a wide variety of products. The situation is slowly changing as minority
group’s protest against stereotypes. However, showing more minority groups is only half
the answer. The other half, perhaps more difficult, is to make their portrayal realistic.
Advertising is a waste of money
There is a feeling among some that advertising is blatant, uneconomic and antisocial. It
makes people buy more than they need it, encourages consumption of liquor and cigarettes;
it is the cause of violence, murder, etc.
The money that is spent on advertising is considered a waste. This amount, it is felt, can be
used effectively in other ways. Models are paid lakhs and crores of rupees (Amitabh
Bachchan, Sachin Tendulkar, etc.) Ads on products that do not sell are also wanted.
However, in all areas of work, failure and superfluous expenditure is there in almost all
Whether advertising is a social waste is difficult to interpret. Allegations of social waste are
based on statements as:
Ads make false statements which confuse & mislead
Ads force customers to want goods & services that are not needed
Ads promote products which are harmful
Ads are forced on consumers (TV ads)
With reference to the statement that ads mislead and make false statement it may be said
most statements are true to a large extent. Yes, ads exaggerate but again consumers are not
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
fools. Products are not brought only for its product attributes; it is bought for prestige (car),
hope of a beautiful appearance, people want to look better, eat better, live better, drive
better cars & improve their standard of living. Products may satisfy entirely or partially the
wants of society. Persuasion is used not only in advertising but also in sermons for
preachers, lecturer and even directives from government.
The second criticism is that ads make people buy what they cannot afford. Ads cannot move
people in the direction which are contrary to social trends. Products are produced after
market research to find out what people want, what is the demand. When people decide
against the use of product no amount of advertising can make them buy the product. IF
advertising can make consumers buy products there will be no product failure.
Advertising promote products harmful to citizens
There is a lot of legislation preventing the promotion and sale of harmful products.
Cigarettes are harmful but smoke is more harmful. Liquor is dangerous and immoral
according to critics. Attempts to abolish ads on these products only result in more use and
illicit trade in such products. No product causes more death than automobiles. Is that
immortal and should its production be banned?
Advertising is lacking in good taste
Some ads (Harpic ad) are irritating. If the public is offended, the advertisers find out through
decreases in sales or news reports and that situation are rectified.
Advertiser’s job is to communicate. Some advertisers are aesthetic and more sensitive than
Ads are forced on TV viewers
The viewers are under no obligation to see the commercials. TV programmes cost money. If ads are
not shown the programmes have to be made at government expense and the tax payer will have to
pay additional taxes.
Does advertising result in a better standard of living? Advertising has indeed made considerable
contribution to a better standard of living with many other factors like our productive economic
system. It has resulted in a dynamic expanding economy. Today’s economy is geared to a high level
of consumption and production level. If employments are to be maintained and the economy has to
grow, consumers will have to maintain the standard of living.
Advertising places an undue stress on material things
With the role of advertising to maintain a high standard of living, it is obvious that advertising does
stress to a considerable extent the consumption of material goods. Does this mean that less stress is
placed on people’s cultural and spiritual needs? Is there a decline in cultural and spiritual fields
because of advertising? Has interest in literature, music, painting, sculpture theatre, creative
pursuits, efforts on the poor and the less fortunate in our society less because of advertising? In fact
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
a decent standard of living is a prerequisite to a general interest in cultural activities. Both material
goods and cultural activities are compatible.
If the cultural & spiritual life is not as high as critics feel it should be, is advertising to be alarmed?
Advertising forces people to buy goods they do not need
It is true that many products can be grouped as not necessary at present. However many products
that are luxuries become necessities for a reasonable standard of living. Who is to decide that a
particular item is not, the critics or the government? The freedom of choice cannot be taken away
from people.
Critics are the loudest in wanting freedom of speech. Advertising, as long as it does not violate
standards of good taste, ethics, etc. is one form of freedom of speech.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Social Benefits of Advertising
Advertising works wonders on the minds of the consumers that in the end influence a
purchase of a product. Advertising has led to many social benefits that are as under:
Advertising is one of the oldest ways of spreading awareness about new products. More
than half the population, literate is very much aware of the new products in the market. All
credits to advertising in different media from newspapers, radio to television. It is one
method where messages to a large mass audience are done accurately & correctly without
misguiding them through TV, Radio, newspaper, Internet, outdoor, etc. Advertising is
possible in all kinds of language Hindi, Marathi, English or any other language. Advertising
provides people with information that is very vital for purchase of goods & services available
in the market; it allows them to decide what product will satisfy their needs & give them
what they want. Advertising gives the people an idea of what exactly would suit their
pockets & what would not. Basically, advertisements are made in a way that the consumer
will have the curiosity to check & see the brand in the market himself. Advertisements lead
to recognition & recall of brands that definitely helps advertisers. Advertising is significant
because in consumer capitalism individuals depend on it for meanings a source of social
information embedded in commodities that mediate interpersonal relations & personal
Advertisements are not based only on consumer durables but there are also advertisements
that educate people like social service advertisement & public service advertisement. These
are in the social interest of the people. E.g.: Anti-smoking campaigns, polio vaccinations, eye
donations. All these advertisements educate children, teenagers & adults about the
precautions that have to be taken to survive & be accepted in the society.
Earlier, due to lack of awareness, most of the AIDS patients were treated as untouchable but
due to frequent awareness advertisements (like the one with Shabana Azmi, who is
educating people about how sitting with AIDS patients is no harm) the attitude towards
AIDS patients has changed & they are looked up with respect & considered normal along
with dignity in society. The basic outlook of the people is changing due to advertisement be
it in their choice of purchasing products or be it their attitude and thinking. Advertisements
have and always will influence the minds of the people.
Advertising is an influential form of social communication. Advertising is not just a business
expenditure undertaken in the hope of moving some merchandise off the store shelves but
is rather an integral part of modern culture. Advertising should be conceived as an
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
important institution in the consumer society because it produces patterned system of
meaning which play a key role in individual socialization & social reproduction with
globalization of the world economy. Multinational corporations often use the same
advertising to sell to consumers around the world. Some critics argue that advertising
messages are causing the world to become increasingly homogenous. Many advertising
campaigns, however have universal appeal, overriding, cultural differences or they
contributed to culture in a positive way.
Employment with the growth of advertising the need for man power is also increasingly. It’s
not that only by advertising for jobs will a person be able to get a job but in the field of
advertising itself there are so many departments & areas a person can explore that people
from almost all fields have the opportunity to join and be a part of advertising.
It is believed that advertising has a positive impact on the economy because it stimulates
demand for products & services strengthening the economy by promoting the sale of goods
& services. Manufacturers know that advertising can help sell a new product quickly
enabling them to recoup the cost of developing new products. By stimulating the
development of new product, advertising helps increase competition. Many economists
believe that increased competition leads to lower price there by benefiting consumer & the
economy as a whole. These economists also argue that by interesting consumer in
purchasing goods advertising enables manufacturers and others to sell their products in
larger quantities. The increased volume of sales enables companies to produce individual
units at lower price. Advertising thus benefits consumer by helping lower price. From all the
points above what can be concluded is that the effects upon society brought about by
advertising come in mixed forms, depending on the purpose & execution of various
campaign. However, society, as we know, it is based very heavily upon advertising and the
negative social and economic effects on our society. No one can predict what new form
advertising may take in the future. Bu the rapidly increasing cost of acquiring new customer
makes one thing certain. Advertisers will seek to hold on to current customers by forming
closer relationship with them & by tailoring products, services & advertising messages to
meet their individual needs. So while advertising will continue to encourage people to
consume it will also help provide them with products & services more likely to satisfy their
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Advertising and Children
The world of children has changed a great deal over the last decade. Kids are no longer
passive consumers of brands that they once used to be, but are active seekers and
influencers for a whole range of products affecting their lives. While this is definitely true for
products like chocolates, biscuits, ice-creams for which kids are the direct consumers it is
also true for a whole other range of high-end consumables like packaged food, computers
and believe it or not… cars! Kids are active seekers and influencers for a whole range of
products affecting their lives.
It’s a given that the new generation of youngsters is an avid consumer of mass media,
especially television. They watch TV with high involvement and more often than not easily
led by what is shown on TV. They are increasingly vocal and influential when it comes to
‘Brand Choice’ and ‘Brand Purchase’. And this influence spreads to categories which may
not be directly used by kids or products aimed at adult consumption (refrigerators, mobile
phones, air conditioners, etc.) E.g.: salt ads, ads on spices, etc.
Advertisers are making their pitches to more and more younger audiences… ‘Catch them
young’ seems to be the motto of the day.
Television ads for foods, toys or kitchen products teach children consumerism. They learn
what products are available, what products do, and perhaps how to compare them.
Children learn how an item fits the lifestyle from cartoons, soap operas and serials. Thus
children develop unrealistic ideas of how people live.
The variety and number of products targeted directly at young people have developed
incredibility, from toys and clothes to music, magazines, TV channels and entertainment
such as sports and electronic interactive media. Many companies focusing on children have
realized that there is a need for redefining the generally accepted definition of childhood.
“Children are getting older beyond their years”, not least due to the dramatic advances in
technology, but there are other aspects that make this target group even more important –
also for manufacturer of products traditionally targeted at adults.
It is quite evident that today’s generation of children is more computer literate and
advertising literate than ever. Equally, they are more brand literate.
Young people have an increasing influence on what their families purchase. Children are the
‘now’ generation. They may lack the so called sophistication of adults; act impulsively and
without much rationale. However, advertising research demonstrates that any message that
observes the basics of communicating with children in their own ‘Language’ will be
registered, even at the very first showing.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Children do make demands on their parents to buy them things whose advertising they have
been exposed to. Actions shoes had introduced kids’ shoes that had a light fitment which
went on and off as one walked. Not a very persuasive communication but it had children
pestering their parents to buy them that particular pair.
Children respond more positively to messages communicated visually rather than voice
message. This is especially true among younger audiences, even up to the age of 10 or 12.
Visual action is closer to their own play experience where actions speak louder than words.
Television is a major form of entertainment. It is reported that children see almost 20,000
ads a year.
Children today are more exposed to media, are extremely brand as well as image conscious.
To children, advertising is TV, when questioned about advertising, they invariably respond in
terms of TV.
Also with age, TV starts playing a more important role in the kid’s like and the consumption
of TV viewing also increases correspondingly. For most of the kids however, television
advertising is an integral part of the entertainment that television provides.
Effects of Advertising on children
The impact of television on young children has received much attention. Research suggests
that children see television advertising as just another form of programming and react
uncritically to its messages, which makes them especially vulnerable to advertising.
Children clearly have an important role to play in the families purchase decision, but their
contribution varies by product category. It I also reasonable to then say that since brand
characteristics are variable, the impact of advertisements on children must also vary by
Advertising affects children tremendously. Their young impressionable minds are influenced
by the advertisements they are exposed to. This effect can be both positive as well as
All tooth paste ads like Colgate, Pepsodent, etc. inculcate a good habit of brushing the teeth
in the morning and at night before sleeping. They create awareness among the children
regarding the ill effects of germs, weak gums, etc.
The Raymond advertisement
This advertisement shows depressed school student wishing good bye to their principal. Out
of their respect and love for their principal, they buy him a Raymond cut piece. It influences
the kids to give teachers the respect they deserve and love them for the knowledge they
bestow upon us.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Thumps UP
Some years back, there was an advertisement for Thumps Up, which had a man standing at
a cliff and performing ‘bungee jumping’ just to grab a bottle of Thumps Up from the crates
lying in a truck below. A kid after watching this advertisement attempted a similar feat and
jumped from the fifth floor of a building in imitation only to fall to his death. Due to this
tragic accident, Thumps Up had to withdraw this advertisement.
Kwality Walls
Kwality Walls came with a series of double meaning advertisements with lines like ‘what’s
on your stick?’ and the ‘the big F’. It showed a group of girls ragging few guys, where in
extremely rude and vulgar behavior was displayed by the protagonist, with an all the more
vulgar line ‘The Big F’. Several parents started complaining because they couldn’t handle
questions by their kids as to enquiring what did the letter F stands for!
Clinic Shampoo
The Clinic Shampoo advertisement featured a girl child who is embarrassed because of her
extremely lifeless hair. Is that the age when a kid should be worried about her looks and
hair? Such advertisements make children grow older beyond their years and thus induce
wrong attitudes and beliefs in them.
LG Golden Eye
LG colour TV advertisements showed a kid not going back home from school and standing
outside a TV showroom just to watch TV because at home his mother doesn’t allow him to
do the same. The mother is shown extremely tensed and scared with water in her eyes. The
advertisement peddled on the platform of ‘good health’ and ‘good for eyes’. This
advertisement indirectly conveyed that how the kids could watch TV unlimited for long
hours, without spoiling their eyesight. Hence this advertisement influenced the child in a
negative way. Also this was a very unimaginable ground to advertise for Television Sets.
Fair and Lovely Fairness Cream
Harping on the point that fair skin is appreciated and dusky skin not, such advertisements
have created an extremely disappointing influence on adolescent girls. Many adolescent
girls are unduly influenced by this standard of beauty and thus become dissatisfied with
their own natural body colour. They then go out of their way to rectify this and end up
landing themselves in depression and lack of self confidence.
A child takes one of the biscuits and considers it as if it is a car, and takes the car (biscuit)
through all possible places in the house. The biscuit passes through the dirty nooks and
corners of the house like on the doormat, the toilet sink, etc. After his drive, the kid
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
peacefully goes back and places the biscuit with the other biscuits on the plate from which
he had picked it up.
This advertisement displays unaccepted behavior of the part of the kid. The children, ever
inquisitive, are intrigued by certain provocative advertisements. Since they partially
understand by the connotation and want to find out more about advertisements of sanitary
napkins and want to find out more about advertisements of sanitary napkins and want to
know why the girls wear skimpy clothes and why their sisters and mothers don’t wear
similar type of clothes. These posers from the kids cause great problems for the parents.
The exposure to the violent content of TV programmes affect children’s attitudes behavior.
People flying, turning into monsters, eating weird things coming back from the grave are
fantasies that children have difficulty in distinguishing from reality celebrities have a great
impact on kids. Ads with free gifts make children force their mothers to buy the product
even if it is no use to them.
The all out assault on children’s senses and values have escalated dramatically. Children are
the largest and fastest growing market for consumption. Even car companies know that
children influence their parents’ choice of automobiles, so they pitch their ads to be
attractive to kids.
Kids are becoming incredibly consumerist and influence family spending decisions. Children
now share one thing in common – a growing in satiable desire for material goods.
However, there are those who argue that advertising is a part of life and children must learn
to deal with in the consumer socialization process of acquiring the skills needed to function
in the market place. They say the existing restrictions are adequate for controlling children’s
advertising. They argue that adolescents develop skeptical attitudes towards advertising
through interactions with socialization agents such as parents and peers. Market place
knowledge, they claim plays an important role in the children as this knowledge helps them
to evaluate ads and make them recognize the persuasion techniques used by advertisers.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Women in India
The role of women in our society has changed in the last few decades. The traditional role of
women cannot be accepted now. Women are playing a diversified role on the socioeconomic context in our society. Women are emerging as a powerful influence group.
Women are shown as objects of sexuality. The idea of the male gaze becomes the universal
advertising strategy. Since men are the main purchasing power of India today the image of a
sanctity lad woman will make them buy anything.
1. Women are being portrayed as sex objects. Women were shown as the weaker sex
always by her man’s side. Not only are women being used as sex objects they are
being used in relation to negative products as alcohol & drugs.
2. Ads show that women’s place is in the home, women are dependent on men, and
women do not make independent and important decisions. The household image of
women is truly exploitive showing woman as an unattractive housewife who slaves
for her family without any ambition is enslaving.
The “Axe” ad shows a man in an elevator applying Axe body spray as he leaves the elevator.
A less attractive man enters the elevator along with a beautiful woman. With the smell of
the body spray still lingering it becomes a very powerful aphrodisiac and the woman
becomes aroused. The next scene shows them coming out of the lift insinuating some kind
of sexual experience. The ad implies that a body spray can make the sexual availability of
women easy.
Then came the category of women at work but even these were in romantic settings. These
ads conversed that working women receive more masculine attention and have a better
time. Ads showed how to become more appealing to men to gain popularity and who to
become more sexually active, all to sell a product. The idea of the male gaze becomes
The upper middle or middle Hindu patriarchal morality is seen as normal. Any deviation
from this is frowned upon. Some critics say that men say they are redefining women’s
liberty and modernity but end up highlighting & reinforcing the prejudices of upper caste
The upper caste or class Hinduism is repeatedly represented as “The only good” and
powerful way of living in order to be a decent and patriotic Indian citizen.
Woman in earlier ads was docile with an expression of down turned face fully dad in sari
with big vermillion and flowers or a vamp in short indecent attire with a sensuous gaze, a
pouting smile without vermillion and flowers.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The modern woman is now shown without vermillion affirming her sensuality, no longer
wearing a sari. But her societal status has not changed in any drastic way as her roles are
defined even now by men. Washing machine microwave ovens liberate Indian women by
moulding them into perfect homemakers. (e.g.: you and Videocon – the perfect
Portrayal of women in media has changed in some ways and not in others. The old
stereotypes (housewife, girlfriend, sex object, decorative object) are still with is modified
and diluted.
The emerging new stereotypes are due to changes in the social, economic, political,
scenario, trends in liberalization / globalization and the rise of consumerism can be seen as
the emerging new Indian women the beauty queens, models, VJ & women’s entrepreneurs.
Besides these there are a great number of serial which stress on women in roles of the
perfect housewife dominated by her husband and a vamp. These shows portray old time
values & morals trying to bring back the trend of the male dominated society.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Ethical Issues
Advertising is a dynamic social form where business interests, creativity, consumer needs
and government regulations meet. The high visibility of advertising makes it particularly
vulnerable to criticism. E.g.: Benetton is both a vehicle to sell clothing as well as a platform
to express opinions on social issues. As a consequence of these mixed perspectives, it has
had to pay a heavy price – number of stores dropped as well as lost out in 1991.
Another aspect is that people feel that advertising plays the role of the “Hidden Persuader”
and that consumers are its victims as they are manipulated to buy products they neither
need nor can afford.
Also findings indicate that while ad executives are fed up with bad ads produced by their
trade, consumers do not care much one way or the other because of the overdrive of
advertising products.
However, it is worthwhile to be aware of the social issues facing advertising, as social
responsibility requires a balance between public welfare and freedom of speech.
Ethical Criteria
In spite of regulation, every issue is not covered by a clear, written rule. Many issues are left
to the discretion of the advertiser and these decisions may be based on a variety of
considerations – objective of ad campaign, attitudes of target audience and the legal
precedent. Many decisions are also based on ethical concerns.
Issues central to an ethical discussion on advertising are:
By its very nature, advertising tries to persuade the audience that they need new products
and to buy it, since it persuades it is not objective or neutral. This fact disturbs critics who
think ads should be objective, informative and neutral. They want ads to provide info and
then stop there.
Beyond the easily ascertainable claims in an ad message are matters of perception. Will buying the
automobile make an envy of my neighbor? Will wearing a perfume make me more attractive? Such
messages may be implied by the situations pictured in the ads. In spite of being aware that these
messages will not essentially change our lifestyle, ad critics raise concern when these messages are
directed to particular groups with limited experience such as children and teenagers.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Some critics believe that advertising is a symbol of our society’s preoccupation with accumulation of
material goods. We are constantly exposed to gods that are bigger, better, changing, newer, etc. and
into thinking that we must have these products.
We do have free choice of what we buy
Advertising offers choice and incentives
Advertising informs consumers about goods and services they demand
Ultimately, consumers make the final decision
The Problem of being Ethical
Advertising can seek help in making decisions about questionable situations with the help of code of
ethic that help provide general guidance. When advertising decisions are not covered by a code, rule
or regulation, someone must make an ethical decision. This person must weigh the pros and cons
and make value judgment about an unfamiliar situation. These decisions are complex because there
exists no clear consensus about what is ethical behavior.
The complexity of ethical issues requires us to make conscious effort to deal with each situation.
After all it is people who create the ethical atmosphere of an organization.
Who should and should not be advertised to?
What should and should not be advertised?
What should and should not be the content of the advertising message?
What should and should not be the symbolic tone of the advertising message?
What should and should not be the relationship between advertising and the mass media?
What should and should not be advertising conscious obligation to society?
There is no clear consensus on what defines ethical behavior.
There is potential conflict between personal ethics and what might be good for business.
Just because it is legal doesn’t mean that it’s right.
Related Factors in Ethical Decision Making
Nature of the company
Marketing objectives
Reputation of the company
Available resources
It literally means ‘puffing’ up a product or exaggerating its qualities. Since this does not fall under the
legal purview, it has become an ethical issue.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Rules of Advertising
1. Advertising should be designed as to conform not only to the laws but not also to the moral
and aesthetic sentiments of the country in which it is published.
2. No advertisement likely to bring advertising into contempt or disrepute should be permitted.
Advertising should not take advantage of the superstition or credulity of the general public.
3. Advertising should tell the truth and avoid distorting facts and misleading by means of
implication and omissions. For instance it should not mislead the consumer by false
statements as to:
 The character of the merchandise – i.e.: its utility, material, ingredients, origin.
 The price of the merchandise or its value, its suitable or the terms of the purchase.
 The service, accompanying purchase, including delivery exchange, return, repair,
 Personal recommendations of the article or service. Testimonials which are fictitious
or the originals of which cannot be produced must not be used. Anyone using
testimonials in advertisements is as responsible for the statements made in them as
he would be if he had made them himself.
 The equality of the value of competing goods or the trustworthiness of statements
made by others.
4. No advertisement should be permitted to contain any claim so exaggerated as to lead
inevitably to disappoint in the mind of the consumer. Special care is called for in the case of:
 Advertisement addressed to those suffering from illness.
 No such advertisements should hold out the promise of cure for serious disease nor
contain any statement calculated to injure the health of the sufferer by dissuading
him or her from seeking a medical advice or otherwise.
 Advertisements inviting the public to invest money should not contain statements
which may mislead the public in respect of the security offered, rates of return or
terms of amortization.
 Advertisements inviting the public to take part in lotteries or competitions with prize
or which hold out the prospect of gifts.
Such advertisements should state clearly all the conditions for the lottery or competition or the
conditions for the distribution of the gifts.
Virtually every product is puffed up. Terms like “The Best” or “The Greatest” were sales talk.
Everyone knows that “Wonder Bread” is not really a wonder, and “The Greatest show on Earth” is
not what everyone considers the greatest. Puffery, therefore, was a form of opinion statement and
not regulated. Some observers have expressed concern that the “Puffery defense” was a loophole
through which many deceptive claims fell. The commission has been criticized for allowing deceptive
claims to clip through under the guise of puffery.
Puffery can be defined as:
1. Reasonable people do not believe to be true product qualities and
2. Incapable of being proved either true or false
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Consequently, if deception is the creation of a false belief about the product in the mind of a
consumer, claims that fall into the definition of puffery cannot be deceptive. By definition such
claims can be neither false nor can they create belief.
Puffery has generally viewed as a form of poetic license. Consumers are aware of the exaggeration
and do not believe it. Some argue that puffery has a detrimental effect on consumers’ purchase
decisions and that should be illegal.
Taste in Advertising
We all have our own ideas as to what constitutes good taste. Hence different things offend different
people. What is in good taste to some is objectionable to another. E.g.: Calvin Klein jeans which
showed a young man rubbing his crotch with a soaking wet pair. Though the 16-24 age groups found
this ad exciting, the older consumers were dismayed.
One dimension of taste is the product itself. E.g.: underwear, laxatives, hygiene, AIDS, etc. have
higher levels of distaste then do other ads. Also the fast that TV can bring this into out rooms and
talk about it embarrasses many.
Another dimension is the matching of certain ads with the program of media. E.g.: ads targeted to
adults on Cartoon Network, etc.
A third dimension is that taste changes over time. What is offensive today may not be considered so
in the future. E.g.: a deodorant ad in 1919 that led to cancellation of subscription would be
considered pretty tame by today’s standards.
Advertising is often accused of creating and perpetuating stereotypes through its portrayal of
women, ethnic minorities, elderly and other groups.
The portrayal of women in advertising is an issue that has received a great deal of attention through
the years. Women are often depicted as preoccupied with household duties, motherhood, or they
are shown as decorative objects are sexually provocative figures.
Advertising shows a consistent picture of gender stereotyping. Women are shown as passive, lack of
intelligence and credibility. In contrast men have been portrayed as constructive, powerful,
autonomous and achieving. Even stereotyping exists in ads target to children. Boys are usually
shown as more knowledgeable, active and aggressive than girls. Non-verbal behavior involving
dominance and control are associated more with boys than girls.
While sexism and stereotyping still exist, advertising’s portrayal of women is improving in many
ways. Women are portrayed more realistically. Women have crossed the boundary from the
domestic sphere to the professional arena. Many advertisers are now depicting women in a diversity
of roles that reflect their changing place in society. In many ads, the stereotypic character traits
attributed to women have shifted from weak and dependent to strong and autonomous.
Some advertisers have been criticized for portraying senior citizens as feeble, foolish, inept or in
desperate need of help.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Political Advertising
Political campaign is organized effort to secure nomination and election of candidates. A
political ad means an announcement or message of any form which is broadcast in return of
payment by a candidate in elections. It does not include letters to editors, news or features
articles or editorial comments. The essential task of political advertising is to gain the
confidence of the people and influence their vote. Political advertising raises many
questions concerning the funding of political campaigns, the reality of political claims and
the likelihood of slanderous or libelous claims made by political candidates.
The amount spent on political campaigns is still small compared with commercial
advertising. Political advertising frequently engages in comparative advertising in which
opposing candidate programmes and performance are criticized and ridiculed.
Political ads are generally perceived as partially true and often dismissed as dishonest.
Political ads must get results in a short period of time. Campaign costs have become
enormous parties and candidates need to raise a lot of money. Financial contributions by
corporations have been restricted by law.
Political advertising is subject to different rules than ads for commercial products and
services. Because “political speech” is widely acknowledged as the core reason behind the
free speech as the most valuable (and hence, most protected) form of speech. Political
advertising is both advertising and political speech, but since it does not fall within the
definition of “commercial speech” it is considered political speech and receives the highest
degree of protection under the first Amendment. The use of professional agency for a
political campaign in India dates back to the 1980’s when Rajiv Gandhi used one.
Political advertising is not wholly unregulated though. It is subject to some minor restraint
under the Federal Communications Commission’s Equal Access law and under the Federal
Election Act. Also, most states have some laws that apply to political advertising, though
most of those restrictions never have been tested for constitutionality and they are largely
uninformed. At this point little information specifically dealing with political advertising has
been posted on the Internet.
Political parties are beginning to see the value of scientific planning and marketing
techniques as they go into elections.
It is a lethal weapon of manipulating minds, used by political parties and has become
aggression in recent years.
Political advertising associated with elections to government offices has been the focus of
much consumer and voter criticism. It is characterized by advertizing in which one opponent
launches a vicious and degrading attack in the ethics and morals or law breaking behavior of
the other followed by counter attack by his or her opponent of similar kind. This type of
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
political advertising is often used as a very visible example of bad taste in mass
communication and adding further to the general cynicism of voter attitudes towards
politicians and government. The problem is that advocates of the negative advertising
strategy have shown that in many instances it works. It has been shown that negative
advertising can be effective in accomplishing a primary objective, like winning an election,
but it can also result undesirable secondary side effects such as increasing cynical attitudes
about politics & politicians.
Subliminal Advertising
The Freudian psychoanalytical model assumes that buying motives are subconscious, in that
a respect cannot elucidate them when asked an opinion of a brand or a cake mix that
requires the addition of an egg. It subconsciously satisfies the need to contribute to the
making process although she consciously believes that the only reason is that a fresh egg
adds quality.
Subliminal stimulation has become one of the more popular advertising – related topic for
students and lay – people. Popularized by Wilson Bryan Key’s book, subliminal seduction
(1973) this subject has captured the imagination of people everywhere.
The term “subliminal” means “below the line” or below the threshold of consciousness. The
idea is that certain things are heard, seen or felt that never reach our conscious thought
process and that those things may still be recorded somewhere in our mind and have an
impact on our decisions and behavior. The author argues that advertising professionals use
this concept to hide images within advertisements and that these images manipulate our
behavior without our even realizing we have seen them.
The term “subliminal perception” is something of misnomer, since perception implies
conscious awareness. Psychologists have studied this phenomenon since the late 1800 and
originally called it “Subception”. However while this is a real psychological phenomenon all
research on this topic indicates that subliminal situation is incapable of affecting our
purchasing behavior.
There is no evidence that advertisers embed hidden images in advertisements, and there is
ample evidence that such efforts would be a waste of time.
Deceptive and Unfair Trade Practices
Advertising works best when it is aimed at “people who would most likely use the product”.
Because of this many unethical attempts are done to place ads in placed they shouldn’t be.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
What is deceptive advertising?
Deception exists when an advertisement is introduced into the perceptual process of some
audience and the output of that perceptual process differs from the reality of the situation
and affects buying behavior to the detriment of the consumer.
Thus deception will be found if:
 There is misrepresentation, omission or practice that is likely to mislead
 The consumer is eating responsibly in the circumstances
 The practice is material and consumer injury is possible because consumers are likely
to have chosen differently if there was no deception
Sometimes the input or advertisement may not be false, but the perceptual process
generates deceptive impression.
There are various ways in which misrepresentations or omissions occur:
 Suggesting that a small difference is important. E.g.: a cigarette as that claim its
product have less nicotine, attributes to an article that has appeared in a magazine.
However the difference is insignificant and meaningless.
 Artificial product demonstration, a monster truck running rough shod over a row of
cars and damaging all but the one being advertised for.
 Using an ambiguous or easily confused phrase, using phrases like government
supported / government approved or low fat.
 Implying a benefit that goes not fully or partially exist: vegetarian toothpaste.
 Implying that a product benefit is unique to a brand: health drink that talks of being
a complete substitute for a meal.
 Incorrectly implying that an endorser uses and advocates the brand, using icons or
celebrities to endorse a product that he / she has used and personally benefited.
 Omitting a needed qualification: complete disclosure in an ad. There are a wide
variety of advertising brands that differ little in substance from competitions. It is
common to associate a brand with an attribute of the product class. Should the
brand be required to state in its advertisement that all brands are virtually identical
in this respect?
 Bait and switch offers. This tactic requires placing an ad item at tremendous value.
Upon reaching the store, the shoppers find the item is “no longer available” and in
order to alleviate their sorrow at missing deal they are directed to a similar item
that, while not as good of a bargain (sometimes no bargain at all) closely matches
what they came in for. Why is this advertising method illegal? For two reasons:
1. It relies on false information
2. It works way too well
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
One of the main problems is that often times, these underhanded techniques work all too
well. They are based on deception misdirection and other highly refined but sharply
unethical techniques. In many ways and especially on the internet, the porn industry has its
share of unethical advertising.
 Identifying the advertising: This is related to advertorials / infomercials where it
should be mentioned that it is an advertisement. Disclosure / caution line should be
clearly identifiable.
 Intellectual property: Using research studies or data to push your product without
giving due credit to the research organization that has spent considerable time and
money to bring out the results.
 False testimonials: These are tools that are used to increase attention, particularly
with radio and print. Sometimes very effective as a form of advertising, they are not
always done well. The intention behind real-person endorsements is to depict a
simulation of word-of-mouth advertising. They may show an expert e.g. doctor in
white coat technique. But more often they present ‘typical people’ who appear to be
just like us. This is the satisfied customer technique. The process of empathy and
identification indicates that the more like us ‘satisfied customer’ appear to be the
more effective their testimonials. Consequently, in many countries, testimonials are
used by companies marketing to specialist occupational groups like farmers,
plumbers, builders, etc.
Who is deceived? The reasonable consumer?
For an advertisement to be deceptive, it must contain a material untruth. That is one
capable of affecting purchase decisions. It is also likely that advertisements can cause public
injury, where public injury means that a consumer must actually suffer damage and it must
show that goods purchased are unequal to the value expended.
What is the acceptable level of misperception?
What percent of an audience needs to be misleading for deception to occur? The standard
will depend on the context. If health and safety are involved, it should be very low or zero. If
the danger is in buying the wrong soap or toothpaste is modest, higher level can be
Misrepresentation and Omission
There are various ways in which misrepresentation or omission occurs:
a) Suggesting that small different is important.
b) Artificial product demonstrate extraordinary feat performed by the model –
“Cheetah Bhi Peeta Hai”. E.g.: Mountain Dew – Darr Ke Aage Jeet Hai.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
c) Using ambiguous phrases easily confuses the mind – “Supported by the Government,
recognized by Dental Association” E.g.: Colgate.
d) Implying benefits that do not fully or partly exist – Vegetarian Tooth paste.
e) Implying that the product benefit is unique to the brand – Health drink substitute for
meal. E.g.: Colgate Salt, Cloud 9.
f) Incorrectly implying that the endorser used and advocates the brand – using icons.
g) Omitting a needed qualification – complete disclosure of fact and substance.
h) Bait and Switch offers – “no longer available from tomorrow”, “last day today” e.g.:
Vijay Sales.
i) Intellectual property – using falsely research items.
j) False Testimonials – These are tools that are used to increase attention, particularly
with radio, television and print. Sometime very effective form of advertising, they
are not always done well. The intention behind real person endorsement is to depict
a simulation of word of mouth advertising. They may show typical people “white
coat doctor”, a typical characteristic representation associated with some emotional
appeal like “parents don’t lie”. The process is empathy and identification indicates
more like us “satisfied customers” appear to be the more effective testimonials.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Self Regulation in Advertisings
1. Individual media & media groups should preferably establish their own codes of
2. Do not possess, sell, let to hire or otherwise promote circulation of any harmful
publication in any part of India. (Young person – Harmful Publication, Act 1955.)
3. No price competition for prize exceeding Rs. 1000 a month should be held without a
license. And no newspaper or other publications should publish advertisements in
violation of the above prohibitions. (Prize Competition 7 Act, 1955).
4. Advertisement – textual, pictorial, graphical or otherwise – should not generate
hatred, contempt or disaffection towards Government or between different classes
of citizens in India.
5. Do not use in advertisement the name, emblem or official seal of the United Nation
& some of its specialized agencies & also the India or a state Supreme Court, High
Court & some official organs, Rashtrapati Bhavan, Raj Bhavan, some luminaries like
Shivaji Maharaj, Mahatma Gandhi & some internationally acclaimed human service
organization like St. John Ambulance Association & the Tuberculosis Association of
India. Also not use any name that may suggest official patronage for the product etc.
advertised. (Emblems & Names – prevention of Improper Use – Act 1950).
6. Avoid unauthorized use in your advertisements another person’s organizations trade
mark. This may attract civil & criminal liabilities. Also do not advertise your goods,
etc. with false trade description which is an offence punishable under law. (Trade &
Merchandise Marks Act 1958).
7. Advertisement in any form must not be used for use of drugs for effecting
miscarriage or prevention of conception in women or maintaining a man’s capacity
for sexual pleasure or correcting menstrual disorders or treatment of venereal
disease, etc.
8. Similarly false or misleading advertisements for efficacy of drugs or magic remedies
of certain diseases should be avoided. (Drugs & Magic Remedies – Objectionable
Advertisements – Act 1954).
9. Advertisements to get protection under Copyright Act, 1957 must be original.
10. Do not publish or cause to be published or take part in publication of any
advertisements representing a woman indecently. (Indecent Representation of
women (Prohibition) Act, 1950).
11. Do not claim orally through advertisement or by way of a product label a product to
be of a quality which it does not rally possess.
12. Do not print, possess or advertise for sale or distribution of any ticket, coupon or
other document for use in prize chit or money circulating scheme or otherwise take
part in any such advertisement or prize chit or Act.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
13. Advertisers are advised not to use in their advertisements for drugs or cosmetics any
report of a test or analysis made by a government analyst / agency or any extract
from such a report.
14. Publicity, propaganda in various ways in connection with an election is prohibited
within 48 hours of an election.
15. Do not publish or otherwise display objectionable & unethical advertisements
encouraging self-medication & self-treatment.
16. Do not put advertisement directly or indirectly interfering with the properly of
another such as wrongful pasting of bills upon someone else’s well or erecting a
hoarding in front of someone’s wall.
17. An advertisement must not obstruct a place to which the public have a right to
access not should a dangerous structure be near a highway.
18. Do not publish advertisements with obscene pictures meant merely to make money
by titillating the sex feeling of adolescents and adults among whom the newspaper
circulates or which constitute unwholesome exploitation of sex for money.
19. Advertisements should not hurt the religious feeling of any community by
inappropriate use of the name of photograph / pictorial presentation of gods or
goddesses in promoting commercial products.
20. Advertisements must not even tend to malign or hurt the religious sentiments of any
community or section of society.
21. Advertisements must not contravene provisions of any relevant Act.
22. Do not publish unauthorized or unpaid dummy advertisements which are against
journalistic ethics. (Press Council of India’s Advertisement Code).
23. Since success of advertising depends on public confidence, no practice should be
permitted which tends to impair this confidence.
24. No advertisement should have the effect of impairing the confidence of the public
on the product or its manufacturers for the success of the advertisement depends
upon public confidence (ASCI Code).
25. Advertisements shall not distort facts nor mislead the consumer by means of
implications or omissions either by statements or visual presentations. (ASCI Code).
26. Obvious untruths or exaggerations to amuse or attract customers are permissible
only if these are not to be misunderstood as genuine qualities of a product (ASCI
27. Advertisement should contain nothing indecent vulgar or repulsive which is likely to
cause grave or widespread offence (ASCI Code).
28. Do not make indiscriminate use of advertising in situation or of the promotion of
products which are regarded as hazardous or harmful to society or to individuals
particularly minors to a degree or of a type which is unacceptable to society at large
(ASCI Code).
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
1. Self regulation by the advertising industry is better than state control.
2. Advertising trade association should be mainly concerned with maintaining high
3. Radio & Television should co-operate closely to avoid permitting advertising that
might cause unfavorable social reactions.
4. Newspapers while publishing advertisement should publish the tariff charged for
each advertisement to ensure that no unusual fee over & above the normal market
rate is charged, which may have other undesirable implication. (Press Council of
India’s Advertisement Code).
5. Newspaper should ensure that an advertisement is published in issues of an edition
or edition contracted for. Deliberate omission constitutes gross professional
misconduct. (Press Council’s of India’s Advertisement Code).
6. There should always be proper communication, vigilance & understanding between
the advertisement department & the editorial department to avoid acceptance or
publication of an undesirable advertisement. (Press Council of India’s Advertisement
7. Editors should assert their right to accept or reject advertisements, particularly those
which border on or cross the line between decency & obscenity. (Press Council of
India’s Advertisement Code).
8. Editors should own full responsibilities for advertisements & editorial matters
published in his newspapers, unless such responsibilities are clearly disclaimed in
advance in respect of any such published material. (Press Council of India’s
Advertisement Code).
9. Advertisement must be truthful in description, claims & comparisons, & these should
be capable of substantiation on demand. (ASCI Code).
10. Observe fairness in competition so that the consumers need to be informed on
choice in the market-place & the canons generally accepted competitive behavior in
business are both served.
11. Abide by the Doordarshan (Indian TV) & AIR (All India Radio) advertising codes
(Appendices 1 & 2) & for this purpose familiarize yourself with the legislations
affecting advertising in India. Particularly the following Acts & the Rules framed
under them:
 Drugs & Cosmetics Act 1940
 Drugs Control Act 1950
 Drugs & Magical Remedies Act 1954
 The Copyright Act 1957
 Trade & Merchandise Marks Act 1958
 Pharmacy Act 1948
 Prize Competition Act 1955
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Emblems & Names (Prevention of Improper Use) Act 1950
Consumer Protection Act 1986
Indecent Representation of Women (prohibition) Act 1986
Code of Ethics for advertising in India issued by the Advertising Standards
Council of India.
 Codes of standards in relation to the advertising of medicines & treatments
(as given in annex of the Doordarshan Code)
 Standards of practices for advertising agencies.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Advertising Standards Council of India
Advertising Standards Council of India is a self regulatory voluntary organization of the
advertising industry. The Role and Functioning of the ASCI and its Consumer Complaint
Council (CCC) in dealing with Complaints received from Consumers and Industry, against
Advertisements which are considered as false, misleading, indecent, illegal, leading to
unsafe practices, or unfair to competition, and consequently in contravention of the ASCI
Code for Self Regulation in Advertising.
The Advertising Standards Council of India (1985) has adopted a Code for Self Regulation in
Advertising. It is a commitment to honest advertising and to fair competition in the market
place. It stands for the protection of the legitimate interests of consumers and all concerned
with advertising – advertisers, media, advertising agencies and others who help in the
creation or placement of advertising.
As the Code becomes increasingly accepted and observed proactively, three things will
begin to happen.
1. Fewer false, misleading claims
2. Fewer unfair advertisements
3. Increasing respectability
In India, as in several advanced economics, there is only ONE BODY for Self Regulation in
Advertising – the ASCI, which is concerned with safeguarding the interests of consumers
whilst monitoring / guiding the commercial communications of Practitioners in Advertising
on behalf of advertisers, for advertisements carried by the Media, in their endeavors to
influence buying decisions of the Consuming Public.
ASCI’s Mission
ASCI has one important goal: to maintain and enhance the public’s confidence in
advertising. ASCI seeks to ensure that advertisements conform to its Code for Self
Regulation which requires advertisements to be:
1. Truthful and fair to consumers and competitors
2. Within the bounds of generally accepted standards of public decency and propriety
3. Not used indiscriminately for the promotion of products, hazardous or harmful to
society or to individuals particularly minors, to a degree unacceptable to society at
ASCI propagates its CODE and a sense of responsibility for its observance amongst
advertisers, advertising agencies and other connected with the creation of advertising.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
ASCI encourages the public to COMPLAIN (*) against advertisements with which they may
be unhappy for any reason and ensures that each complaint receives a prompt and
objective consideration by an impartial committee (CCC) which takes into account the view
point of the advertise, and an appropriate decision is communicated to all concerned.
ASCI endeavors to achieve compliance with its decisions through reasoned persuasion and
the power of public opinion. If an AD is to be reviewed for its likely impact on the
sensibilities of individual viewers of TV, or readers of press publications, the Advertisers
concerned is informed of substantial issues raised in the complaint, in the exact context of
the specific advertisement, as conveyed by the perception of the complainant, and to elicit
the appropriate response by way of comments from the Advertiser.
Only then will the Consumer Complaints Council (CCC) of the ASCI be in a position to
deliberate meaningfully on the issues involved and to arrive at a fair and objective
conclusion, which would stand the scrutiny of all concerned with the right to freedom of
expression, and the freedom of consumers to choose the products / services made available
to them in the market-place.
A clearly readable copy or clipping of the Ad under complaint, with full particulars of name
and date of publication, or a printout of an Ad or promotion on a Website or in case of a TV
commercial, the channel, date and time or programme of airing, and a description of the
contents of the TVC, along with a hard copy of the complete complaint preferably signed by
the complaint. The identity of the complaint to the Advertiser is not disclosed.
The Code of Advertising Practices
To ensure the truthfulness and honesty of representations and claims made:
1. Advertisements must be truthful.
2. Where advertising claims are expressly stated to be based on or supported by
independent research or assessment, the source and date of this should be indicated
in the advertisement.
3. Advertisements should not contain any reference to any person, without due
4. Advertisements shall not distort facts nor mislead the consumer by means of
implications or omissions.
5. To ensure that advertisements are not offensive to generally accepted standards of
Public Decency.
6. To safeguard against the indiscriminate use of Advertising products hazardous to
7. No advertisement shall be permitted which:
a) Tends to incite people to crime or to promote disorder and violence or
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
b) Derides any race, caste, colour, creed or nationality
8. Advertisements addressed to children shall not contain anything, whether in
illustrations or otherwise, which might result in their physical, mental or moral harm
or which exploits their vulnerability.
9. Ads should not show children climbing or reaching dangerously to reach products or
for any other purpose.
10. Advertisements should contain nothing which is in breach of the law, or omit
anything which the law requires.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Advertising Agencies Associations of India
The Advertising Agencies Association of India (AAAI) is the official, national organization of
advertising agencies, formed to promote their interests so that they continue to make an
essential and ever-increasing contribution to the nation, by working towards the following
To benefit Indian consumers and to protect their interests by helping ensure that
advertising is honest and in good taste.
To benefit Indian advertisers by promoting their sales, increasing their sales and
increasing productivity and profitability, to stimulate business and industrial activity.
To benefit media by establishing sound business practices between advertisers and
advertising agencies and each of the various media owners.
To benefit the nation by harnessing advertising for the good of the country, its
institutions, its citizens; to co-operate with the Government in promoting its social
objectives and in the task of nation-building.
To question advertising that is wasteful and extravagant.
To improve the image of the advertising industry and to focus on its role in economic
development and employment through campaigns, seminars, press relations and
direct contact with Government ministries.
To protect members’ interests n issues related to Guidelines and Rules of
Commercial Broadcast, Sponsorship, Rates, Commission and Accreditation; working
towards full service operations at all TV Channels / Doordarshan Kendras and Radio
Channels; setting up an independent monitoring body for commercials.
To protect members’ interest in matters relating to INS policies, credit periods, Rules
for Accreditation and streamlined operations, promotions of better production
values and effective advertising purchases.
To improve the quality of professional relationships between Agencies and Clients
through seminars, the AAAI Handbook and the evolution of uniform guidelines,
codes and norms.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
To help settle disputes through evolution of guidelines, procedures and uniform
practices; mediating between agency-client, agency-agency and agency-media to
ensure quick resolution of disputes.
To constantly examine all relevant laws and statutes affecting the advertising
industry including ESIS, Sales Tax, other taxes, Arbitration, MRTP guidelines; seeking
professional advice and presenting a common viewpoint at relevant forums to
protect members interests; pursuing new avenues like Credit Insurance cover, etc.
To organize seminars and workshops on effective advertising skills in creative
copywriting, print and production, client servicing, television production, media
operations, media planning, advertising as a career, etc; maintaining a fully stocked
reference library with a reprint service for members.
To constantly communicate members through circulars and correspondence;
periodic publication of an updated membership directory, regular regional meetings
for members and their employees.
To offer the services of the Association and members in significant projects, e.g.: for
Family Planning, the National Wastelands Development Board, Gujarat Earthquake
relief, etc; encouraging the creation of such advertising by members. There are
innumerable instances of successful AAAI activities, with benefits to the entire
advertising industry and all others associated with it.
Advertising Agencies Associations of India Code of Standards Rules of Advertising Ethics
Rules of Conduct Vis-à-vis the Customer
Advertising should be so designed as to conform not only to the laws but also to the
moral and aesthetic sentiments of the country in which it is published.
No advertisement likely to bring advertising into contempt or disrepute should be
permitted. Advertising should not take advantage of the superstition or credulity of
the general public.
Advertising should tell the truth and avoid distorting facts and misleading by means
of implications and omissions.
No advertising should be permitted to contain any claim so exaggerated as to lead
inevitably to disappointment in the mind of the consumer. Rules of Ethics between
Advertisers Rules or Conduct.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Methods of advertising designed to create confusion in the mind of the consumer as
between goods are unfair and should be renounced.
The imitation of the trademark or name of the competitor, or the packaging or
labeling of goods, or the limitations of advertising devices, copy, layouts or slogans,
should be disallowed.
Advertising should endeavor to gain the goodwill of the public on the basis of the merits of
the goods or services advertised. Direct comparison with competing goods or firms should
be avoided and disparaging reference in no circumstances permitted.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The sale of produce in a primary market takes place on the basis of the visual inspection of
the goods, and in the secondary and terminal markets on the inspection of the samples. The
buyer and the seller decide upon the terms either orally or through written contracts. The
contract terms specify the quality and quantity of the produce, the time and place of
delivery, the price and terms of payment, handling and incidental charges, the procedure for
settlement of disputes and penalties. The terms of contract were not standardized and thus
varied for every individual transaction, and were more favorable to the buyer.
With a view to improving trade practices, All India standard contract terms have been drawn
up for a number of commodities. In standard contract terms the definition of quality and
allowances in respect of refraction, damaged goods have been specifically standardized.
These standard contract terms by traders is voluntary they have to large extent
strengthened the position of the producer-seller and have improved the quality of the
product marketed.
Standardization and Grading
In order to gain the confidence and establish a rational relationship between the quality of a
produce and its price, it is necessary to devote some attention to the proper preparation,
sitting and sorting of a material. This is achieved by grading the produce in conformity with
certain accepted quality standards via shape, size, form, weight and other physical and
technical characteristics. The produce brought to the market is very often contaminated
with dust, stones and other foreign matter added either deliberately or by accident. Such a
produce brings a lower price to the farmers. Care should be exercised while assembling the
produce of different farms so that the good material is not mixed the inferior material
brought in by some farmers.
The Government of India had recognized the need to introduce the standardization of
agricultural produce. The act empowers the central government to prescribe grade
standards indicating the quality of articles included in the schedule and specify grade
designation marks to represent particular grades or qualities. The act provides for the
grading and marketing of agricultural produce. The grade standards prescribed under this
act are based on both physical and chemical characteristics and are formulated after
analyzing representative samples of each commodity collected from different regions and
different seasons. Besides the international standards and special requirements of overseas
consumers are also taken into account while formulating these standards for the
commodities which are exported. The grade standards are reviewed and amended from
time to time in the light of the shift of the pattern of production and trade and changes in
the consumers’ preferences. The grades are designated as the “AGMARK” grades.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Grading at Farmer’s Level
The grading of agricultural commodities under “AGMARK” has been consumer oriented.
Generally the grading was done at the level of the traders. At this stage the producer was
not a direct beneficiary of the grading scheme. It was felt the need to introduce grading at
the produces level. Thus the directorate of marketing and inspection introduced a scheme
for setting up commercial grading units.
Grading a fruits and vegetable products
With a view to exercising quality control over fruits and vegetables the government
promulgated the fruits product order under the essential commodities Act. The
preservatives and colors to be used are also clearly laid down.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Consumer Guidance Society of India (CGSI)
The Consumer Guidance Society of India (CGSI) was formed to fight consumer exploitation
of all forms. The consumers have often been given substandard products & services,
adulterated foods, short weights & measures, spurious drugs, exorbitant prices & many
other outrageous crimes.
The CGSI has many achievements:
It is the earliest consumers’ organization founded in 1966.
CGSI was the first to demand a Consumer Protection Act.
70% of the complaints have been redressed.
CGSI established a formal Product Testing in India in 1977.
“Keemat” was the first magazine published by CGSI imparting important information
to consumer.
6. CGSI promotes consumer education, undertakes training project in rural areas &
represents consumer interests with government & other bodies.
7. CGSI received the National Award for Consumer Protection in 1991.
8. CGSI is the only Indian consumer organization to be council member of consumer
International for 25 years.
9. CGSI is a member of the Master State Consumer Protection Council.
10. CGSI participates in large number of technical Committees & government decision
making bodies.
In 1975 CGSI pressed for a Consumer Protection Act & Consumer Court. The CGSI deals with
consumer complaints & gives guidance to those who wish to go to the consumer court. The
CGSI also brings both parties together to resolve issues. It has covered many issues relating
to medical malpractice & negligence, insurance non-payment, substandard drugs, defective
household appliances, etc.
Due to the efforts of CGSI, ISI certification for pressure stove became mandatory. CGSI has
managed to have consumer education introduced in schools at the 9th standard & being
covered progressively from 4th standard. The subjects taught are Consumer Movement,
Right & Responsibilities of Consumers Food Adulteration, Weights & Measures, the
Environment, etc.
CGSI have standard a rural project in villages in Thana & Raigad districts in 1997. CGSI
launched the Pedestrian wing in June 1999. The activities include regular & continuous
interaction with Traffic Police, Transport Commissioner & RTO at all levels for redressal of
grievances of pedestrians & improvement in facilities. The pedestrian wing works closely
with likeminded NGO’s & other is in contact with the Pedestrian Association of UK.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
CGSI was the first consumer organization to demand special consumer guidance for
redressal of consumer complaints. The delegation of five consumer organization from
different parts of India pressed for a comprehensive Consumer Protection Act, Special
consumer court & directorate of the Act.
CGSI handles consumer complaints & offers legal advice. If there are a number of complaints
against a particular party both are brought together to resolve the issue.
The CGSI complaints committee meets twice a week 70% success in forward complaints
were medical surgical malpractice & negligence, insurance, non-payment, sub-standard
drugs, medicines, home remedies, defective household appliances, poor quality, food &
drink, misleading advertising claims, etc.
CGSI education committee has been working to introduce consumer education in school.
The Maharashtra Education board has now introduced consume education at the 9 th
standard. They are taught consumer movement, food adulteration, weights & measure,
environment, etc.
CGSI have also started rural projects. CGSI is the first NGO to start a forum for the
How to complain:
Be sure the complaint is sound.
Present it politely.
Preserve cash memos & warranty card.
First approach the retailer. He may have a valid explanation.
If he is unresponsive write to the manufacturer quoting No & date of warranty card.
Retain all originals keep copies of your letter.
In case of suspected food & drug adulteration write to the State health authorities
retain samples where possible.
 If CGSI products perform pearly write to the respective agencies.
 If there is no response write to the consumer guidance society of India.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Central Consumer Protection Councils
1. The central council consists of:
 The chairperson who is the minister in charge of the consumers’ affairs in the
central Government.
 Other official & non-official members representing such interest.
2. They meet as and when necessary. At least one meeting has to be held every year.
3. The chairperson decides where the meeting could be held.
4. The objective of the central council is to promote & protect the consumers.
 To stop marketing of goods hazardous to like property.
 To be informed about the quality, quantity, potency, purity, standard & price
of goods.
 The right to be assured and have access to a variety of goods at competitive
 The right to be heard & be assured that consumers interest will receive due
 The right to seek redressal against unfair trade practices or exploitation.
 The right to consumer education.
The State Consumer Protection Council
Same as Central Consumer Protection Disputes redressal, agencies also known as District
forums are set up by the state government.
Consumer Forum – Consumer Disputes redressal agencies also known as District forums are
set up by the state government in each district. There may be more than one area district
council in a district if the government thinks it is necessary. The central government can set
up national consumer redressal commission.
Each District forum consists of:
1. The president will be a person who has the qualifications to be a district judge.
2. Two other members are persons of ability, integrity and standing with adequate
knowledge or experience or capacity to deal with problem relating to economics,
low, consumer accountancy industry, public affairs’ administration, one will be a
woman member.
3. Every appointment will be made by the state government on the recommendation of
a select committee consulting of –
a) President of the state commission
b) Secretary, Law department of the state
c) Secretary in-charge of the department dealing with consumers affairs
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Every member will hold office for a test of five years or up to the age of 65 years. They
cannot be reappointed. The salary or honorarium, other terms & conditions as may be
prescreened by the state government.
They can entertain complaints where the value does not exceed Rs. 5 lakhs. The complaint
will be within the local limits with the opposite party resides or carries on business with the
permission of the district forum.
The commission has the power to award compensation not only for loss or damage but also
for injustice, harassment & agony suffered by consumers. A complaint has to be filed by:
 The consumer to whom such goods are sold.
 Any recognized consumer association even if the consumer is not a member of the
said association.
 Group of consumers.
 Central or state government.
Procedure on the receipt of complaint
A copy of complaint is sent to the opposite party asking him to give his version of the
case within 30 days.
The opposition can proceed to settle the consumers’ dispute in a manner specified.
If a test or analysis of the product is to be made, the sample is taken from the
consumers, & sent for the necessary lest. The reports of these tests are then sent to
the district forum within 55 days. An extended period may be granted if necessary.
The complainant has to deposit such fees as may be specified to the laboratory to
carry out the analysis. The report will be given to the district forum who will send it
to the opposite party with appropriate remarks.
If the opposite party objects to the method of testing or the correctness of the
finding, the opponent has to submit in writing the objection.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Grahak Panchayat
Grahak Panchayat or Consumer Forum is a social organization registered under Co-operative
Societies Act. In 1974 there was a shortage of goods for daily use and other essential
A group of young people stared the movement with 25 families in one group. 500 such
groups were formed. Goods were purchased from manufacturers at wholesale prices and
the leader of the group distributed it to the families. As a follow-up of this the Grahak
Panchayat was formed in 1986.
The objectives of the Grahak Panchayat are:
 To educate people about consumer rights.
 To build consumer organization to get justice.
 To solve consumer problems.
It was made up of retired people from different fields with plenty of knowledge and
experience. There is no membership to this organization. Anyone is free to join voluntarily.
It tries to solve problem amicably and use the Grahak court as the last resort.
The Grahak Panchayat has spread all over the country including Andaman. Counseling
centers are opened in many areas in a city to give free advice to consumers.
It has a lot of literature on the consumer movement and instructions to consumer on what
they can do if they have been cheated. One of their booklets in four editions gives
information on government departments, what their functions are and also how complaints
can be filed. It says what precautionary measures should be taken and what one can do
after being cheated.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Council for Fair Business Practices (CFBP)
On October 2, 1966, the Late Mr. J R D Tata, the Late Mr. Ramakrishna Bajaj, Mr. Arvind
Mafatlal and Mr. F. T. Khorakiwala, inspired by Mahatma Gandhi’s message came together
and formulated a Code of Conduct for Businessmen. Out of this desire to build bridges of
understanding between manufacturers and consumer, the Fair Trade Practices Association
was born and later renamed as Council for Fair Business Practices (CFBP). It represented the
coming together of a section of like-minded businessmen who felt the need to safeguard
consumer interests in an organized manner through a forum of Self Regulation and thereby
help elevate the public image of business.
Today this organization is the only of its kind in India and has as its member in some of the
Country’s leading business houses and Trade Associations. Since its inception the Council
has been propagating the code of Fair Business Practices which codifies the norms of
business activities that ensure justice and a fair deal to the consumer.
CFBP was set up because doubts arise sometimes in the mind of the consumer about the
business community due to some elements whose dealing with the consumer has not been
devoid of unfair trade practices. There is a great need for better communication,
understanding and rapport between the Consumer and Business. CFBP tries to bridge this
gap. It insists on not only prescribing the code, but exhorts its members to steadfastly follow
the code of fair business practices.
Though the council is a body of Businessmen, its main objective is to protect the consumer’s
interest. The council has remained committed to the philosophy of self – regulation and has
brought about awareness that the consumer’s right must be safeguarded and protected
which will ultimately promote better business. The image of the business community needs
to be improved to gain greater goodwill with the consumer. A satisfied consumer is the best
insurance for a businessman. A customer would prefer to deal with a member of CFBP
rather than with someone outside the discipline of CFBP.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Bureau of Indian Standards (BIS)
The Bureau of Indian Standards, the National Standards Body of India is statutory body set
up Bureau of India Standards Act, 1986. The Bureau is a body corporate and responsible for
laying down guidelines for BIS, it comprises members representing the industry, Consumer
Organizations, Science Research Institutes and Professional Bodies, Technical Institutions,
Central ministries, state government members of parliament. So far over 17,000 standards
have been formulated in different technology areas.
Product Certification
The product certification scheme is basically voluntary in nature and aims at quality, safety
and dependability to the ultimate customer. Conformity is ensured by regular surveillance
of the performance by surprise inspections and testing of samples.
Quality Management Systems Certification (ISO 9000)
BIS is a national agency authorized to operate systems certification in India. It has adopted
ISO 9000 series of standards based in international criteria comparable to any other such
systems being operated.
EMS Certification
With the growing concern for environment friendly industrial activity, ISO 14000 standards
have been developed. BIS after adoption of these standards as national standards, has
launched EMS (Environment Management System) Certification.
HACCP Certification
BIS launched HACCP (Hazard Analysis Critical Control Points) based quality certification
scheme as per the requirements of ISO 15000.
Hallmarking of Gold Jewelry
In order protect consumers against victimization of irregular gold Hallmarking of gold
jewelry was launched under BIS Act 1986.
The bureau has a chain of laboratories located in different parts of the country for
conformity testing of products and samples offered by applicants for grant of license.
Modernization of BIS Laboratories has also been taken up.
BIS has formulated a plan which emphasizes on:
Development of complementary level of standardization, namely, company
standardization and association standardization.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Effective implementation of standards through sectoral committees, such as steel,
food, textiles, information technology.
Automobiles and power.
State level committees on standardization and quality system to ensure better
implementations on standards.
Use of India Standards in Legislation.
Greater interaction with public and private sector undertakings.
Bulk public purchased based on standards and standard market products.
Use of standards in education systems.
Intensified media campaign to create awareness.
BIS as founder member of International Organization for Standardization (ISO), continues to
take part in international standardization. BIS has a set up a consumer affected Public
Grievances Department at Headquarters, nominated public Grievance Officers at Regional
and Branch office deal with consumer complaints against BIS services and ISI marked
products. An Enforcement Department is functioning at Headquarters. Complaints on
misuse of Standard Mark are investigated by the Department and appropriate legal action is
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
PDS (Public Distribution System) Interms
India’s PDS supplies subsidized foodgrains and other essential items commodities through a
network of ‘ration shops’. There are approximately 4,62,000 Fair Price Shops. About 160
million families purchase commodities from ration shops each year. The PDS is enormous in
terms of expenditure, reach and number of agencies involved in its operation.
State governments issue ration cards to their residents and decide on the quantity
consumers are entitled to.
Many problems have plagued its operation. PDS suffers from chronic management
shortcomings, the extent and timing of procurement, poor forecasting capacity and
antiquated logistical system to support storage and delivery functions, inappropriate
product mix and cost inefficiencies.
Many problems stem from systematic corruption. 3.1% of foodgrains 36% of sugar gets
diverted to the Black Market through agents and middlemen. Buyers are made to sign that
they have bought 10 kgs when they have bought only 5 kgs. Corruption also plagues the
process of issuing ration cards.
Today the ration card is used only by people who have no piped gas or cylinder gas.
Kerosene is issued only to non users of gas for cooking. The ration card is a very useful
identity card whether rations are allowed or not.
The Government has revived the long defunct PDS even for APL (Above Poverty Live) ration
card holders.
Consumers however were disappointed sugar (market price Rs. 35 per kg, ration price Rs.
20). One card was entitled to 2 kgs was ok, but not so with wheat and dal. The market price
of tur dal was Rs. 90 kg, the PDS price is Rs. 55 per kg (1 kg per card). But consumers
complained it had other grains and chaff mixed in it and took a long time to cook.
Wheat was full of stones and insects. The rice supplied could not be cooked and palm oil
was used not for cooking but to light diyas.
The government claims to have spent 122 crores a month.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Consumer Education and Research Council
CERC was set up in 1978 as public charitable trust. It is a non-profit, non-governmental
voluntary organization. It deals with local, regional, national, international issues related to
consumer protection and environment protection.
The Government of India recognized it as a research institute and the government of
Gujarat recognized it as a consumer organization.
CERC is funded by many national and international agencies. It is managed by a Board of
CERC is India’s only organization with an independent in-house comparative product testing
laboratory for testing, evaluation, rating and ranking of consumer goods. The test findings
are published in the organization’s subscription based by monthly INGIGHT. The test reports
identify the brands and the manufacturers of the products tested. They declare which
brands have conformed to the test parameters under the Indian Standards and which have
not. The reports also suggest “Best Buys”. The magazine gives:
CERC interaction with the outside world.
Action taken on consumer grievances.
Answers consumer questions.
An update on global news and news of consumer protection.
Consumer cases dealt with or decided.
CERC has involved the Gujarat High Court, Supreme Court of India, MRTP Commission
District forums, state and national Commission for redressal of consumer grievances.
Other activities are dealt by CERS – Consumer Education and Research Society.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Consumer Disputes Redressal Forum
CDRF is also known as the consumer court. It has a legal backing and enjoys the powers of a
civil court in many respects. They can punish the party if it does not obey the given orders. It
has 37 sections in the consumer quotation act of which only 3-4 sections are applicable to a
consumer e.g. who is a consumer, the jurisdiction of the particular court, definition goods
and service and the deficiency of goods and services. The lowest court of appeal is the
District Forum then the state commission followed by the National Commission. At the top
is the Supreme Court.
The District Forum judge is the Forums president and is a retired district judge.
The state commission judge is a retired court judge and the one at the National
Commission is a retired Supreme Court Judge.
The District Forum handles disputes of monetary value up to Rs. 5 lakhs.
The state commission handles cases with a monetary value above 5 lakhs and below
20 lakhs.
The National Commission handles cases above Rs. 20 lakhs.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Vance Packard
Vance Packard was born in Pennsylvania in 1914 and graduated from the Pennsylvanian
He worked as a columnist for the newspapers and associated Press. He later became an
editor and writer at “American Magazine”. He wrote a number of books on social issues like
‘The Naked Society’, ‘The Waste Makers’, ‘People Shapers’, ad ‘Hidden Persuaders’ which
was his first book. Hidden Persuaders won the National Book Award. Vance Packard also
taught creative writing at Columbia and New York University.
In Hidden Persuaders he tries to show how advertisers use motivation research to find out
the consumers hidden urges. He writes how advertisers use this data to sell products and
The consumers are unpredictable, what consumers sat they want does not reflect on what
they actually do when buying a product. One cannot assume that people know what they
want. One cannot assume that people tell you the truth about their wants and dislikes even
if they know them. Vance Packard writes that it is dangerous to assume that people can be
trusted to behave in a rational way. People don’t act reasonably but they do act with
The Rise of Motivation Research
Vance Packard explores the large scale use of psychiatry and social sciences to channel the
consumers thinking and purchase decision.
The appeals used a “Hidden”. This in-depth approach is used to affect the consumers’ daily
acts of consumption. More than two – thirds of advertising is based on motivation analysis.
Motivation research gives starting explanations for so many of our daily habits, why
consumers behave the way they do. The hidden weaknesses of consumers are probed and
these are manipulated to influence behavior. Advertisers see consumer as a bundle of
daydreams, hidden yearnings, guilt complexes, irrational emotional blockages. Advertisers
are symbol manipulators and see consumers as docile in responding to this manipulation of
symbols and stir consumers into action.
Advertisers are able to manipulate consumer by using psychiatrists and social scientists as
consultants and by motivation research. Motivation research seeks to learn what motivates
people in making choices. It uses techniques to reach the unconscious or subconscious mind
because preferences are determined by factors of which the consumer is not conscious.
Housewives buy cosmetics for ‘hope’, consumers buy car for prestige, consumers buy
oranges for vitality.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The average consumer has more spending money. People have usable durables. Waiting for
these to wear out and be obsolete will lead to unsold stocks. Marketing conventions tried to
find out how best to stimulate consumers more and more. Ad men began talking of the
desirability of creating psychological obsolescence. So ad men created dissatisfaction with
the old and outmoded. Again, what is making ad men to use powerful tools of persuasion
(Motivation Research) is increased standardization. Brands are all more or less the same.
The differences are trivial or non-existent. This rapid diminishing product difference resulted
in more and more penetrating persuasion technique, consumer-catching techniques.
Ad Men Become Depth Men
Ad men wonder why consumers behave the way they do, why they buy or refuse to buy. So
advertisers turned to psychological consultants and tried to understand and explore the
deep unconscious and subconscious factors that motivate people. Once the real motivation
was diagnosed they would use triggers that were needed evoke the desired response.
All of us are creatures of conditioned reflex so the main issue of all persuasion is to develop
these conditional reflexes by using trigger words and symbols.
Ad men thus began talking about different levels of human consciousness. The first level is
the conscious rational level where people know what is going on and are able to tell why.
The second level is the preconscious and subconscious where a person may know in a vague
way what is going on but would not be willing to tell why. This is the level of prejudices,
assumptions, fears and so on.
The third level is where we are not only not aware of our feelings and attitudes but we
would not discuss them of we could.
Ad men increasingly began exploring the possibilities of marketing research. Hundreds of
social scientists began depth studies for marketers. The most famed of these depth probes
was Dr. Ernest Dichter. He claims any product must not only be good must appeal to our
feelings deep into the psychological recesses of the mind.
Moulder of Images
One way of hooking customers was moulding of images i.e. the creation of distinctive, highly
appealing personalities for products that were essentially, undistinctive. The aim was to
build images that would arise before our ‘Inner Eye’ at the mention of the products name. If
people could not discriminate reasonably, they should be helped in discriminating
unreasonably in some easy, warm, emotional way. To create this illogical loyalty it was
necessary to create some differentiation in the mind and some individualization.
David Ogilvy’s advertising form devised successful non rational symbol for an obscure of a
shirt, a moustached man with a black eye patch, a Hathaway shirt. To show how powerful
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
this imagery can be he did not have any copy. All that was shown was a picture of a man,
standing by an observatory telescope taking notes. He had a moustache and a black eye
patch. The sales of Hathaway soared.
Thus the image builders started studying the types of images that would have the strongest
appeal to the greatest number of people.
The most spectacular successful image building has been done are not just a mere means of
conveyance. The car tells who we are and what we think we want to be. Buick suggested
this in their ad “It makes you feel like the man you are.”
Ad men thus made a comprehensive personality profile for each major brand.
Conflict between Pleasure and Pain
Advertisers felt they had to successfully manipulate the consumers’ guilt feelings, fear, and
inner tensions. Every time a self indulgent product was advertised ad men needed to lessen
the guilt feelings and offer approval. E.g.: many people continue to smoke despite their guilt
feelings about the habit; they smoke to relieve tension, to express sociability, as a reward
for effort, as a proof of daring and so on. Many enter a room full of people with a cigarette
in their fingers as it makes them seem less nervous and more sophisticated. People also
smoke to prove they are virile and mature. Young people smoke trying to be older and older
people smoke trying to be younger.
Housewives resent appliances as a threat to their creativeness and usefulness so ad men
emphasize that appliances free the housewives to have more time with the children and to
be a better mother.
The consumers’ fears and anxieties like their guilt feelings offered many openings for the
advertisers to draw up successful ad campaigns. Motivation analysts find ways to bypass the
consumers’ fears.
Hidden Needs
Motivation research gives clues to the advertiser by studying the consumers’ subconscious
needs, yearnings and cravings. Once the needs were identified the necessary appeals could
be built into the advertising campaign.
Eight hidden needs were identified:
1. Emotional Security:
Home freezers did not make sense economically (the cost of electricity, the leftovers
that are thrown out). A motivation study revealed that the freezer represented that
there is always food in the house and food represents security, warmth and safety.
People feel insecure and want food around them. Dr. Dichter advised advertisers to
sell gadgets with the security theme.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
2. Selling Reassurance of worth:
Advertisers show no awareness that women have any other motive for using
washing products than to be clean, to protect their hands and to keep objects clean.
Ad men should realize that it is necessary to enhance the housewife’s feeling of
worth and esteem, a feeling of being important.
3. Selling Ego Gratification:
This is similar to selling reassurance of worth. E.g.: A machine to lift great loads very
efficiently but the product did not sell. Depth studies revealed that the ad put all the
glory on the machine. The operator was not visible at all. The ad was changed and
the new ad showed that the operator was the complete master of the machine.
4. Selling Creative Outlets:
Gardening is described as a pregnancy activity. Gardening gives older women a
chance to keep on growing things after they have passed the child growing age. The
food mixes aroused feelings of guilt feelings. Housewives fait that if they used ready
to eat food it showed that they were inferior housewives. So depth studies advised
manufacturers to leave housewives something to do. Cake mixers then had the
housewife add eggs and milk.
5. Selling Love Objects:
When advertising for a Pianist Liberance the target audience was women past the
child bearing age, a picture of his mom was shown smiling in her rocking chair while
her son performs. The wide, trustful child like smile persists on the singer.
6. Selling Sense of Power:
Consumers show a fascination for products that offer a personal extension of power.
E.g.: cars give the owner a renewed sense of power and masculinity, an emotional
need. This need for a sense of power particularly in men is very thoroughly exploited
by advertisers.
7. Selling a Sense of Roots:
Consumers seek a sense of the good old days and homely associations. Campaigns
show mother and home themes “Grandma used to make.”
8. Selling Immortality:
One of the problems in selling insurance to women is how to do it without reminding
them they are getting older. Life insurance to males who are bread winners and
whose life is to be insured show the comfortable life led by survivors thanks to
insurance. The real appeal is to assure the buyer the prospect of immortality in order
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
to control his family after death; emotional problems should be stressed rather than
comfort of surviving family.
Sexual Overtones
Sexual images were used as eye stoppers. The depth approach introduced sex subtleties and
penetration to deeper levels of consciousness. More subtle and passive sex symbols
(fantasy, poetry, etc.) were adopted.
Get your man themes were outdated. Women want something more to be accepted and
respected by men as partners. Tenderness is introduced in lingerie and hair preparations.
Products have fundamental difference of meaning for men and women. E.g.: in buying a
home men see homes as symbolic mother, a calm place for refuge, solace and comfort.
Women on the other hand see a home as an expression of herself and an extension of her
own personality.
Labels, rectangular in shape are now rounded to make it more feminine. Manufacturers are
changing packaging labels, ad strategies, to come up with reassuring symbols.
1. Motivational Analysis on Food
Motivational studies on the hidden meanings on milk, milk products liquids and
softer foods revealed that milk, psychically loaded food at the subconscious level is a reward
or punishment by the housewife. She conveys affection and warmth is she serves fruit salad,
ice-cream or chocolate milk she uses food as a weapon a technique to punish or encourage.
According to Dr. Dichter ice-cream symbolizes, to many of us, uninhibited over
indulgence. So ice-cream makers should show lavish portions, overflowing, inviting viewers
to sink their mouth right into it. Soup is unconsciously associated with man’s deepest need
for nourishment and reassurances.
2. Impulse Buying
It has been reported that seven out of ten purchases are decided in the store on
impulse. Psychologists and advertisers persuade the consumer to buy products they may not
need or want till they see the product presented to them. Package designing makes or
breaks the impulse sale. A good package design can hypnotize woman.
3. Social Status
Persuasive appeals vary for the various social layers. The motivation forces are social
mobility, the aspiration drive, the achievement drive, the translation of economic goods into
socially approved symbols.
For some items like silver ware, snob appeal is the basic motivation. Consumers
however talk about durability, craftsmanship, but actually they want it for prestige and show
off value. Manufacturers could sell products as status symbols through the price tag.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
4. Hidden Aversions
Many of the consumers developed hidden resistance based on seemingly
unreasoned prejudice. Motivation research can help bring out the cause of these hidden
fears. Vance Packard writes about the negative image of pruners. It conveyed “Direct up and
old”, it was associated with a laxative and constipation. After marketing research, prunes
were presented as a “new Wonder fruit”. The ad showed a cute figure skater saying, ‘when
you feel good, good things happen to you. So start eating prunes today till you have energy
to spare.’
Again when first the lung cancer scare started, cigarette manufacturers promoted
the use of holder’s to trap tars with their filter. But smokers thought people would laugh at
them if they used it and smokers thought it would be too feminine.
Dr. Dichter created a new personality for ‘holder’. A rugged sturdy holder was
created in masculine brown and blacks. Red, blue and white were for women. Instant coffee
was seen as not used by a good housewife. So guests were not offered instant coffee. Later
the ad campaigns built emotional overtones and social status into their products.
Another ad showed men at a baseball game happily puffing on their hollered
cigarettes. The ad showed one man smoking a plain cigarette and another using a holder.
The copy read ‘Can you see the difference.’
Advertising and Children
Vance Packard characterized children as ‘consumer trainees’. Eager minds could be moulded to want
your products. The potency of television in conditioning youngsters to be loyal enthusiasts of a
product began in the 1950. Ads aimed at children not only, as future consumers, but as ones who
lead their parents into the salesroom.
Motivational analysts were called by ad men to provide insights on the most effective way to achieve
as assured strong impact with children. Guide posts given by social research was that a show can
appeal to a child without offering the child amusement or pleasure. It will appeal is it helps him
express his inner tensions and fantasies in a manageable way, if it offers the child a way to get rid of
his fear, anger or befuddlement, the basic pattern of good guys versus bad men. The good guys were
all young men and villains were old men who might be ‘symbolic or father figures.’ To children adults
are a ruling class against which they cannot successfully revolt.
The Question of Validity
Probing and manipulating of consumers is based on the findings of motivation analysts. How valid
are their methods? Alfred Politz said depth probing is okay but what is more important is to
interpret the findings.
Critics feel that motivation research use interviews not trained in scientific methods. The motivation
researchers oversell themselves. Other feel that those who attacked motivation research as fake
were just as wrong as those who claimed it worked miracles. Motivation research must be
approached with care. Critics say:
 It is not correct to assume there is any single or major reason why people buy or not buy. A
lot of other factors enter into decision making. Motivation researchers point out that the
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
intensity of our subconscious motivational influences has a clear bearing on the usefulness
of a subconscious factor to a manipulator.
 Motivation research is not the whole answer.
 It is still not an exact science.
 Motivation research is still far from an exact science.
 Motivation analysts have taken tools from clinical psychiatry and applied them to mass
 Conclusions drawn about mass behavior on the basis of a small sampling of test results is
likely to be erroneous.
 The results depend too much on the intuitiveness and brilliance of the practitioner.
 Projective tests are not subject to statistical proof.
 Each research expert can look at the same projective test result and come up with different
However believers in motivation research say it is most useful as a starting point. It has an important
place at idea-gathering or hypothesis stage. Even if it sparks one good idea it is worth it.
The Question of Morality
What does this manipulative attitude do to our society? The users feel if it is good for them, it is
good for nation.
Some say it does not matter because the public has become so skeptical of advertising appeals that
its psyche is not damaged by these manipulative appeals. Also some constructive results have come
from explorations into human behavior from motivation research.
Those against it ask - where is the morality in making housewives non-rational and impulsive? Where
is the morality of playing upon hidden weakness and frailties? Where is the morality of manipulating
small children before they are legally responsible? What is the morality of developing an attitude of
wastefulness of natural resources?
To take to such manipulation shows disrespect for the individual personality.
It is conceded however that of we are to have an expanding economy based on mass consumption /
production (we cannot deny the need for mass consumption) and for this advertising is obviously
A strong defense is available against such persuaders. We can choose not to be persuaded.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Jean Kilbourne
Chapter 1 – We are the Product
Millions of dollars are spent on advertising. TV & radio programs are simply fillers for the
space between commercials. Advertising (especially for tobacco & alcohol) are forever
claiming that advertising doesn’t influence anyone & that kids smoke and drink beer
because of peer pressure. Jean Kilbourne agrees but she says such pressure is created by
advertising. Advertisers believe that “Reach the right bird and the whole flock will follow.”
Opinion leaders can influence what their friends eat, drink & wear. Consumers are brain
washed, and easily led. Advertisers themselves describe consumers as sitting ducks & direct
marketing is like dropping a smart bomb with pinpoint accuracy. Young people are got on
the web without any problem. Children are especially vulnerable on the internet, where
advertisers manipulate them, involve their privacy & transfer them into customers without
their knowledge. Jean Kilbourne writes there are as yet no regulations against targeting
children online. Advertisers attract children to websites with games & contests.
Some sites offer prizes to lure children into giving up the email addresses of their friends
too. Not only are children influencing a lot of spending but are also developing an addiction
to consumption. Advertisers spend a great deal on psychological research that will help
them target children more effectively. Advertising is increasingly showing up in our schools.
There are already market-driven educational materials in our schools. Just as children are
sold to the toy and junk food industry, women are sold to the diet industry. Female drinkers
are sold to the alcohol industry. Young people are also an important market for alcohol.
Jean Kilbourne says that women’s magazines are often ridiculous. In one magazine they said
that appliances can suddenly burst into flames & cites an example when this happened &
eighty people died. In the same magazine on the back page was an ad on cigarette, a
product that kills over four thousand people year in & year out. Also women’s magazine,
talks of health cancer, leukemia & how breast cancer can be fought with a positive attitude.
In the same magazine is a cigarette ad!
Jean Kilbourne writes that our ancestors lived for thousands of years with the young
learning ancient hunting methods, oral history, legends around camp fires. Now they wear
Nike instead of moccasins & use power ski mobiles instead of dog sleds. This change has
been brought about by advertising.
Chapter 2 – Advertising is our Environment
According to Jean Kilbourne, an average American is exposed to 3000 ads everyday &
spends 3 years of one’s life watching YV ads. Today she says, little girls rate super models
high because of their perfect features & skins. Films & TV shows also carry hidden
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
commercials. Products, brands are shown casually. Consumers are not aware that a lot of
money is paid to these producers to display the brands.
These days, she says that kids don’t want to grow up to be athlete, scientists, etc. but want
to be highly leveraged brands. Although advertisers say that ads simply reflect society, it is a
medium of influence & persuasion & its influence is cumulative. She also claims that
advertising is not only our physical environment; it is increasing our spiritual environment as
well. E.g.: Jesus is a brand of jeans “See the light” (an ad for wool), “an enlightening
experience” & “absolute heaven” (power ad). Alcohol ads are with the bottles surrounded
by a halo of light. Advertising co-opts our sacred symbols & sacred language to arouse our
immediate emotional response.
Advertising & religion share a belief in transformation & transcendence. People believed
that we can transform ourselves by hard work & transcend our circumstances. Today we can
transform ourselves by all the material goods advertised & achieve transcendence. The
focus of transformation has shifted from the soul to the mind. Jean Kilbourne says the
influence of advertising goes beyond the target group. The group that cannot afford & thus
become envious even kill to get what they can’t buy.
Consumers feel that objects will transform their lives & give them social standing & respect.
People who buy goods are buying an “Image” most brands are essentially the same but
consumer buy because of the image reflected in their advertising. Liquor is not selling liquor
but fantasies. A car is not selling convenience of travel but prestige. Thus advertising sells a
great deal more than product. It sells values, images, love and success. Jean Kilbourne says
advertising corrupts our language.
Chapter 3 – The Corruption of Relationship
Advertising promotes a corrupt & bankrupt concept of relationship. Most of us yearn for
intimate & committed relationship that will last. Advertising ties consumers’ needs with
products & promises us that, things will give us that relationship but it never does.
Many ads seem to be about advertising between a parent & a child, turn out to be glorifying
relationship between the parent & a product e.g.: an ad shows a woman on the telephone &
a little girl behind her touching her hair. The headline says “what makes the room cozy.” It is
an ad for room freshener. Another ad shows a girl running towards the open arms of a
woman. The copy says “open your eyes what is important is right in front of you.” It is an ad
for a shoe.
Ads have always promised a better relationship via a product. Buy this & you will be loved.
Advertisers say that products don’t betray us or abandon us “you can love it without getting
your heart broken” proclaims a car ad. Another TV ad shows a man snoring in bed. The
woman beside him tosses & turns & hugs a pillow. A female voice says “put some
excitement back into your life.” What the woman longs for is new sheets.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Chapter 4 – Crazy for Cars
Ads encourage us to think of cars as family members. A Mazda ad says “It’s not a family car,
it’s a family.” In ad after ad we are told that buying a car in like falling in love & getting
married. E.g.: A Lexus ad says “we don’t sell cars. We merely facilitate love conditions.”
Mercedes Benz says “buying a car like getting married. It’s a good idea to get to know the
family first.” Vance Packard tells us that cars are often men’s horses. Car ads are funny silly,
exciting, clever & seemingly insignificant. However they have a cumulative direction &
impact. The car in an ad has gone from being a symbol of power to the actual source of
power (the engine that pumps the value in our hearts from a symbol of sex to an actual
Chapter 5 – Falling in Love with Food
While men are encouraged to fall in love with their cars, women are invited to fall in love &
romance with the food, its gathering & serving. Food has been advertised as a way for
women both to demonstrate love & insure its reward. E.g.: warms your heart “like a hug
that lasts all day.” Advertisers offer food as a way to relate romantically & sexually. E.g.: an
ad shows a close up of a woman’s face smiling very seductively “whatever you are giving
him tonight he will enjoy it more with rice.” An ad says “looking for a light, cheesy
relationship?” (Ad for macaroni & cheese). While someone connects passionately with a
product human relationship is trivialized & ignored. Just as alcohol ads teach us that
drinking leads to good times, great sex, athletic success so do food ads associate eating &
over eating with only good thing. The negative consequences are not mentored.
Always in the world of advertising the solution to a problem is a product. Food that is
heavily advertised is seldom nourishing. Food can nourish us & bring us joy; it cannot love
us, it cannot fill us up emotionally. When people use food as a warp to numb painful feeling
to cope with a sense of inner emptiness & a substitute for human relationships. Many end
up with eating problems that can destroy them.
Chapter 6 – Cutting Girls to Size
We are more vulnerable to the seductive power of advertising & addiction at adolescence.
At this time they are developing their self concepts, learning values & roles. Advertisers do
not hesitate to take advantage of insecurities & anxieties of young people offering solutions.
A cigarette provides a symbol of independence. A pair of jeans or sneakers conveys status.
Even girls who are raised in loving homes with supportive parents grow up in a toxic cultural
environment at risk for self mutilation, eating disorders & additions reinforced by
Girls of all ages get the message that they must be flawlessly beautiful & then. The more you
subtract the more you add says an ad for clothing. The search for independence can be a
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
problem if it leads to a denial of interpersonal relationship. Boys are generally shown in ads
as active while girls are often presented as blank & fragile. Young boys & girls are
surrounded by messages urging them to sexually active. You can learn more about anatomy
after school says an ad on jeans.
Chapter 7 – Alcohol & Rebellion
Jean Kilbourne states that the number one drink in America is beer because beer is the drug
of choice for young people. She feels children are at a greatest risk from alcohol than these
other drugs. She adds that alcohol is the leader killer of young people in America (age 15 –
25) car crash, homicide and suicide. Alcohol is linked with half of the violent crimes,
domestic violence rape & child abuse and addiction.
Advertisers aim alcohol ads at kids because they want to have positive associations with
specific brands long before they start to drink. So ad man broadcast ads on TV during youth
viewing hours. The alcohol ads are also released for young people via magazines with almost
half the readers under twenty-one.
The alcohol industry has also developed several new products designed by young people –
mixed alcohol with ice-cream, milk, jell, popsicles. Adolescent females are significantly more
at risk for becoming dependent on alcohol than women in older age group. This makes them
target for alcohol advertisers. Advertisers want to appeal to idealized images especially
when the people are young, as courageous rebels and free spirits. The promise that alcohol
will liberate our wild selves is especially seductive for women.
Through advertising and popular culture we get the message that rebellious men are sexy &
desirable but rebellious women are not. Alcohol advertisers want to attract men to the
promise of seduction and sexual adventure and attract women to the promise of release
from inhibitions and societal restraints without frightening women or portraying them as
shits. They often show women as sexual and untamed but not too wild. They imply that
drinking will give a woman some of man’s power and privilege without detracting from her
feminity. So they often use male symbols such as cigars, etc.
Chapter 8 – Rage and Rebellion in Cigarette Advertising
Of all the lies advertising tell us, the ones told in cigarette ads are the most lethal. The
tobacco industry is in the business if getting children addicted to nicotine, this is because
90% of the children according to Jean Kilbourne start smoking before they are 18. If you
don’t start smoking when you are very young, the chances are you will never start.
Almost nothing good can be said of cigarettes unlike other potentially dangerous products
such as alcohol. There is no such thing as low use. People start smoking and become
addicted for many reasons and no one suggests that tobacco advertising is the primary one.
However cigarette ads target the most vulnerable one.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Research shows an association between exposure to advertising and adolescent smoking
behavior; sudden rises in adolescent smoking coincide with large scale cigarette
promotional campaigns. It is not that the young see an ad and immediately start to smoke
but seeing the ads and handling cigarette packs and promotional gift lessens their resistance
weakens their resolve so later they will somewhat be willing to accept a cigarette when
offered. It is clear that targeted ads do influence the young.
Jean Kilbourne had her first cigarette when she was thirteen. She was lonely and depressed,
felt awkward and had very low self esteem. She liked the way cigarette made her feel high
and calm at the same time. She states the she did not become addicted to cigarettes
because of advertising. Cigarettes smoking was constantly glamorized and assumed to be
safe and socially desirable.
Ads claim that smoke fills you up when you feel empty inside. An angry woman is still often
considered to be terribly unfeminine and undesirable. What does one do with all that
suppressed rage? Why not have a cigarette or another piece of cake. Suppressed anger also
plays an important role in alcoholism and in eating disorders.
Cigarettes advertisers are aware that women are likely to use smoking as a way to regulate
other moods. A Marlboro ad features a worried looking baby saying “Before you scold me
mom… may be you better light up a Marlboro.” Girls who are susceptible to addiction are
the ones who are the least tough, most vulnerable, feeling most in need of a tougher image
for protection. Cigarette ads offer smoking to women as a way to control their emotions.
Phalli imagery, sexual innuendo is often used in cigarette ads along with exotic subliminal
Chapter 9 – Advertising an addictive Mind Set
Long before a girl or a boy picks up a cigarette or beer he or she has been primed by
advertising to except transformation via product. We get seductive and incessant message
from ads – product are magical and can fulfill our dreams. “The dream begins as soon as you
open the door” say a car ad. The landscape of advertising is often deliberately dreamlike.
Food is often offered as a way to enter into a dream world. A yogurt ad claims that the
product will take you to paradise, women are encouraged to reach for food to find peace,
and other products are offered to women as a magical way to transport ourselves into a
state of bliss. Alcohol ads promise a dream world “Fairly takes can come true” says an
alcohol ad. Countless ads offer a route to paradise itself.
Again and again we are told that products can give us energy, power, sex appeal and
magnetism. “Get your hands in the newest source of energy say ad for gloves. “Tang it’s a
kick in the glass”. The very language of advertising to children is drug language. Surge, rush,
loaded, blow you mind? The double meaning is not lost on children. Our real life and
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
relationship is dull; via the products advertised we can escape into a colorful exciting,
endlessly passionate world.
If I drink this I will be sexier, if I smoke I will be calmer & sophisticated. These products will
change me and my life. Advertising depicts that adulthood is a drag, our real life is
monotonous, our relationship is boring and out job meaningless. So ads tell us that we can
escape and get instant gratification. Children get the message that better do the good stuff
now and thus children feel the good stuff is to chase women, stay out all night and party.
Alcohol ads give a choice fun, excitement or monotony without it. Advertising encourages
compulsion, greed and transformation via products. Addiction begins with the hope that
something out these can instantly fill up the emptiness inside. Advertising is all about false
Chapter 10 – Addiction as a Relationship
In alcohol ads the bottle is sometimes shown as a friend of family member, “Bring our family
home for the holidays” says a beer ad. A vodka ad states “The perfect summer guest.” A
beer ad uses a bull dog with the slogan “Be your own Dog”.
Cigarettes are shown as friends, companions. Smoking ads are shown as a facilitator for
sexual activity. A cigarette ad shows two cigarettes touching by the light of the moon with
the slogan “Moonlight and Romance.” Another ad says ‘Wanted tall, dark stranger for long
lasting relationship.”
In life there are many loves, but only one Grand passion. A liquor ad shows a couple in a
passionate embrace. Is it the passion for liquor? Jean Kilbourne does not mind when
advertisers exploit people longing for relationship and connection to sell shoes or shampoos
but not to exploit it to sell addictive product.
“Can the generation gap be bridged” (ad for scotch) Scotch can bridge it. The truth is that it
is for more likely to widen gaps between people than to bridge them. Most often the
intimate connection that alcohol ads offer is sexual experience. Alcohol has long been
advertised to men as a way to seduce women. “Sex appeal is the slogan for all ads that
features a six pack of beer.
Women are increasingly encouraged to think of the bottle as a lover too. “For 15 nights I
have been with Floria – never once was it the same (Italian wine ad). Women’s bodies in
alcohol are often turned into bottles of alcohol. We drink to feel connected and in the
process we destroy all possibility of real intimacy and end up profoundly isolated.
Chapter 11 – Advertising and Violence
Sex in advertising is more often about power than passion, about violence than violin. It
dehumanizes and objectifies women. The poses and posters are borrowed from
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
pornography. Male violence is encouraged by ads that encourage males to be forceful and
dominant to value sexual intimacy more than emotional intimacy. Men are encouraged by
ads that encouraged to never taking a “No”. “If your date won’t listen to reason try a velvet
Hammer” (cocktail).
Jean Kilbourne says ads do not directly cause violence but the violent images cause the state
of terror. Advertising helps to create a climate in which certain attitudes and values flourish,
that women are valuable only as objects of men’s desire that real men are always sexually
Chapter 12 – Redefining Rebellion
All consumers need to get past the belief that there is a fix, an instant solution to every
problem. The basic point of new advertising is that an individual has a need or a problem
and a product can meet or fix it. We need to use the right product and all will be fine. If we
are unhappy we can smoke a cigarette or drink or have an ice cream; if your teeth are rolling
use whitening gel, if you are fat use diet food, etc.
When social problems are mentioned in advertising it is only trivialized “scientist predict
global warning.” The icy cold six pack of beer is the obvious solution”. You know what is
happening to the Ozone says an ad for makeup “Imagine what it is doing to your skin.” Jean
Kilbourne states that counter advertising can change the environment advertising that gives
honest information and deglamorises products like alcohol or tobacco. It should be fairness
based doctrine. E.g.: “The tobacco industry is not your friend.” School should be ad free
zones. We should see TV with our children and choose programmes with care. We should
limit our consumption and TV watching instead, take up other activities like reading, sports,
dramas and start discussion groups with our children. We should start a “Voluntary
simplicity movement to save our earth and our souls.” She feels democracy is endangered
when information is given for economic gain rather than to educate and enlighten the
public. The main enemy is longer the communist but capitalist threat. It is time to fight back.
Our survival is at state.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Standards of Weights and Measures Act, 1956
The Standards of Weights and Measures Act, 1956 was the first enactment by which the
uniform standards of weights and measures, based on the metric system were established.
The standards established by the 1956 Act were based on the international system of units.
Standards of weights and measures were subsequently revised by having regard to the rapid
advances made in the fields of science and technology and a practical system of units of
weights and measures, suitable for adoption for all the signatories to the Metro Convention
was evolved. This practical system of weights and measures was given the name “Le System
International d’Units” (with its international abbreviation “SI”).
In view of the revision the Central Government constituted a Committee to consider what
changes are required to be made in 1956. The Committee suggested the replacement of the
1956 Act by a comprehensive legislation on the subject.
The Standards of Weights and Measures Act, 1976
An Act to establish standards of weights and measures, to regulate inter-State trade or
commerce in weights, measures and other goods which are sold or distributed by weights,
measure or number, and to provide for matters connected therewith or incidental thereto.
It extends to the whole of India. It applies to commodities in packaged from which are sold,
distributed or offered or displayed for sale.
Standard Units
Units of weight or measure to be based on metric system:
Base unit of length shall be metre.
Base unit of mass shall be the kilogram.
Base unit of electric current shall be the ampere.
Base unit thermodynamic temperature shall be the Kelvin.
Zero degrees Celsius corresponds to 273.15 Kelvin.
Base unit of luminous intensity shall be the candela.
Base unit of amount of substance shall be the mole.
Base unit of numeration shall be the unit of international form of Indian numerals, in
accordance with the decimal system.
Use of non-standard weight or measure prohibited.
Manufacture of non-standard weight or measure prohibited.
No weight, measure or other goods shall bear thereon any inscription or weight,
measure or number except in accordance with the standard unit of such weight,
measure or numeration established by or under this Act:
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Central Government shall keep in its custody, for the purposes of this Act, such number
of reference standards as may be necessary. The Act envisages the appointments of
Controller and Inspectors of Weights and Measures in the States. The Central Government
with the consent of State Governments is empowered to delegate some of the powers may
be sub-delegated by the Controller of Legal Metrology in the States. These powers may be
sub-delegated by the Controller to other officers not being less than the rank of an
Where any goods seized are subject to speedy or natural decay, the Director or the
authorized person may dispose of such goods in such manner as may be prescribed.
Forfeiture. Every false or unverified weight or measure, and every false package shall be
liable to be forfeited to the Central Government. Any custom, usage, etc. contrary to
standard weight, measure or numeration to be void, manufacturers, etc., to maintain
records and registers.
Inter State Trade or Commerce
Quantities and origin of commodities in packaged form to be declared:
No person shall –
Make, manufacture, pack, sell or cause to be packed or sold
Distribute, deliver
Offer, expose or possess for sale,
any commodity in a packaged form to which this Part applies unless such package bears
thereon or on a label securely attached thereto a definite, plain and conspicuous declaration
made in the prescribed manner, of:
1. The identity
2. The net quantity
3. Where the commodity is packaged or sold by number, the accurate number of the
commodity contained in the package
4. The unit sale price of the commodity in the package
5. The sale price of the package
Verification and Stamping of Weights and Measures sent from One State to Another
When any weight or measure sent from a transfer State for delivery and it is not required to
be dismantled before its dispatch, it shall be known as a weights or measure of the first
If it is required to be dismantled before its dispatch to the Transferee State, it shall be
known as a weight or measure of second category.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Weight or measure, whether of the first or of the second category, shall be verified and
stamped unless fees for such verification and stamping have been paid in accordance with
the scales specified.
Weight or measure of first category is not to be sold or used in any State unless it is
stamped in the Transferor State.
Weights or measures of the second category received from Transferor State to be produced
before the local inspector of the Transferee State, and the Transferee State shall verify every
weight or measure to any other State to submit return to the Controller. Persons exporting
or importing any weight or measure to get themselves registered. No dealer or
manufacturer shall export or import any weight or measure unless he us registered.
The following rules were established after the weights and measures Act 1976:
1. The Standards of Weights and Measures (Packaged Commodities) Rules 1977.
2. The Standards of Weights and Measured Tenders of Weights and Measures
(Approval of Model Rules), 1987.
The list of recognized laboratories shall be notified from time to time. When an
application is made for the recognition of a laboratory, the Director shall, send one
or more of his officers to the laboratory and obtain a report whether the laboratory:
Has the necessary measuring equipment
Has the necessary qualified staff
Is situated in an appropriate environment
Has an adequate recording system
Is likely to give expeditions, efficient and adequate service
Is ready and willing to get its equipment verified periodically
Whether they have the certificate issued by the National Accreditation Board
of Laboratories (NABL)
3. The Standards of Weights and Measures (Numeration) Rules, 1987
4. The Standards of Weights and Measures (Inter-State Verification and Stamping)
5. The Standards of Weights and Measures (Enforcement) Act, 1985
1. Batch: Packages where the total number of such packages does not exceed 100 &
packages more than 100 but less than 10,000 of the same type & same production
run combination packages.
2. Dealers: A person, a firm buying, selling, supplying, distributing for cash or deferred
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
3. Drained Weight: Refers to a solid commodity contained in a free throwing liquid
means the weight of solid commodity after the liquid has been drained for 2
4. Group Package: Package containing similar packaging of different brands.
5. Manufacturer: One who makes the product & also one who puts the mark on the
packaged commodity although not made by him.
6. Maximum Permissible Error: Given in case of commodities in schedule I & II.
7. Multiprice Package: One or more packaging of same product of identical quality.
E.g.: toilet soap, net weight 10g each total net weight 100gm.
8. Packer: Person who prepacks any commodity.
Declaration to be made on every package
Name, address of the manufacturers and if the manufacturers is not the packer, he
name & address of both have to be given.
Every package shall have a local security affixed.
The common name of the commodity contained in the pack.
The net quantity in terms of standard unit of weight or the number of the
commodity in the package.
The month & year it is manufactured or prepacked.
The dimension of the commodity when relevant.
Other matters as specified in the rules. No declaration as to month or year on
package containing bidees and incense stick.
Bottles containing liquid milk, soft drinks, etc. which is returnable for refill.
Liquid milk in pouches.
Package with metal products.
Chemical fertilizer. No declaration of retail sale price.
Veg., fruit, fish, meat.
Bottle containing liquid milk, beverages with milk ingredient returned for refill
package containing animal feed more than 15 litres.
Package containing printing matter.
The height of the letter, the size, width is specified details required should be legible,
prominent, definite plain & clear. Authorized person takes positive action in accordance
with the provisions of the old against the manufacture or packers as the case may be.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
 Before taking any action the authorized person shall size the package as a sample to
produce as evidence.
 The disposal of package is done as per the code of criminal procedure.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Copyright Act, 1957
In ancient days creative persons like artists, musicians and writers made, composed or
wrote their works for fame and recognition rather than to earn a living, thus, the question of
copyright never arose. The importance of copyright was recognized only after the invention
of printing press which enabled the reproduction of books in large quantity. In India first
legislation of its kind, the Indian Copyright Act was passed in 1914 which was mainly based
on the UK Copyright Act, 1911.
During the last four decades modern and advanced means of communications like
broadcasting, litho0photography, television, etc. have made inroads in the Indian economy
with the result that it became essential to fulfill international obligations in the field of
copyright. This necessitated that a comprehensive legislation may be introduced to
completely revise the copyright law. To this effect a Copyright Bill, 1957 was introduced in
the Parliament.
It introduced several new features which are briefly indicated below:
1. A Copyright Office is sought to be established under the immediate control of a
Registrar of Copyrights who shall act under the superintendence and direction of the
Central Government. The principal function of the Copyright Office will be to
maintain Register of Copyrights in which may be entered, at the option of the
authors, the names and addresses of authors and owners of copyright for the time
being, and other relevant particulars. Such a Register will easily make available useful
information to interested members of pubic in regard to copyrighted works.
In order to encourage registration of copyrights, provision is made that no
proceeding regarding infringement of copyright shall be instituted unless copyright is
registered in the Copyright Office. In addition to being in charge of the Copyright
Office, the duties of the Registrar of Copyrights will be to entertain and dispose of
applications for compulsory licenses and to inquire into complaints of importation of
infringing copies. An appeal to the Copyright Board is provided for against the orders
of the Registrar of Copyrights.
2. Provision is made for setting up a Copyright Board which will determine the
reasonableness of the rates of fees, charges or royalties claimed by performing rights
societies, consider applications for general licenses for public performances of works
and will assess compensation payable under the Bill in certain circumstances. An
appeal can be made to the High Court against the decisions of the Copyright Board.
3. The definition of “copyright” is enlarged to include the exclusive right to
communicate works by radio-diffusion.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
4. A cinematograph film will have a separate copyright apart from its various
components, namely, story, music, etc.
5. An author assigning copyright in his work is allowed the option to re-acquire the
copyright after seven years but before ten years of the assignment on the condition
that he returns the amount received by him at the time of the assignment with
interest thereon.
6. The normal term of the copyright is fixed to be the life of the author and a period of
25 years after his death as against the existing term of the life of the author, and a
period of 50 years after his death. Shorter terms are fixed for anonymous or
pseudonymous works, cinematograph films, mechanical contrivances, photographs,
7. Under the existing law, the sole right to produce a translation of a work first
published in India is extinguished after ten years, unless a translation thereof is
produced within that period. The Draft Bill makes the right co-extensive with other
rights arising out of copyright.
8. Provision is made for the issue of a general or special license for public performances
of any work by means of a radio-receiving set or a mechanical contrivance.
9. A license may be issued to any library to make or cause to be made one copy of any
book in which copyright subsists and which is not available for sale.
10. Provision is made for regulating the activities of performing rights societies and also
for controlling the fees, charges and royalties to be collected by them.
11. Certain rights akin to copyright are conferred on broadcasting authorities in respect
of programmes broadcast by them.
12. International copyright relations which are based on international treaties will be
regulated by specific orders to be made by the Central Government.
13. A fair dealing with any work for the purposes of radio summary or judicial
proceeding will not hereafter constitute an infringement of copyright.
List of Amending Acts
The Copyright (Amendment) Act, 1983 (23 of 1983) (w.e.f. 9-8-1984)
The Copyright (Amendment) Act, 1984 (65 of 1984) (w.e.f. 8-10-1984)
The Copyright (Amendment) Act, 1992 (13 of 1992) (w.e.f. 28-12-1991)
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Copyright (Amendment) Act, 1994 (38 of 1994) (w.e.f. 10-5-1995)
The Copyright (Amendment) Act, 1999 (49 of 1999) (w.e.f. 15-1-2000)
It extends to the whole of India
a) Adaptation means –
 In relation to a dramatic work, the conversion of the work into a nondramatic work.
 In relation to a literary work or an artistic work, the conversions of the work
into a dramatic work by way of performance in public or otherwise.
 In relation to literary or dramatic work, any abridgement of the work or any
version of the work in which the story or action is conveyed wholly or mainly
by means of pictures in a form suitable for reproduction in a book, or in a
newspapers, magazine or similar periodical.
 In relation to a musical work, any use of such work involving its arrangement
or alteration.
b) “Work of architecture” means any building or structure having as artistic character
or design, or any model for such building or structure.
c) “Artistic work” means –
 A painting, a sculpture, a drawing (including a diagram, map, chart or plan),
an engraving or a photograph, whether or not any such work possesses
artistic quality.
 A (work of architecture).
 Any other work of artistic craftsmanship.
d) “Author” means –
 In relation to a literary or dramatic work, the author of the work
 In relation to a musical work, the composer
 In relation to an artistic work other than a photograph, the artist
 In relation to a photograph, the person taking the photograph
 In relation to a cinematograph film or sound recording, the producer
 In relation to any literary, dramatic, musical or artistic work which is
computer-generated, the person who causes the work to be created
e) “Broadcast” means communication to the public –
 By any means of wireless diffusion, whether in any one or more of the forms
of signs, sounds or visual images
 By wire and includes a re-broadcast
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
f) “Calendar year” means the year commencing on the 1st day of January.
g) “Cinematograph film” means any work of visual recording on any medium produced
through a process from which a moving image may be produced by any means and
induced a sound recording accompanying such visual recording and “cinematograph”
shall be construed as including any work produced by any process analogous to
cinematography including video films.
h) “Communication to the public” means making any work available for being seen or
heard or otherwise enjoyed by the public directly or by any means of display or
diffusion other than by issuing copies of such work regardless of whether any
member of the public actually sees, hears or otherwise enjoys the work so made
i) “Infringing copy” means –
 In relation to a literary, dramatic, musical or artistic work, a reproduction
thereof otherwise than in the form of a cinematographic film
 In relation to a cinematograph film, a copy of the film made on any medium
by any means
 In relation to a sound recording, any other recording embodying the same
sound recording, made by any means
 In relation to a programme or performance in which such a broadcast
reproduction right or a performer’s right subsists under the provisions of this
Act, the sound recording or a cinematographic film of such programme or
If such reproduction, copy or sound recording is made or imported in
contravention of the provisions of this Act.
Copyright Office & Copyright Board
Copyright Office: The Copyright Office shall be under the immediate control of the Registrar
of Copyrights and may appoint one or more Deputy Registrars of Copyrights.
Registrar and Deputy Registrars of Copyrights: The Central Government shall appoint a
Registrar of Copyrights and may appoint one or more Deputy Registrars of Copyrights.
Copyright Board: The Central Government shall constitute a Board to be called the
Copyright Board which shall consist of a Chairman and may appoint one or more than
(fourteen) other members.
Works in which copyright subsists
1. Original literary, dramatic, musical and artistic works
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
2. Cinematograph films
3. Sound recording
Copyright shall not subsist: in any cinematograph film is a substantial part of the films is an
infringement of the copyright in any other work.
Common properties are not the subject of copyright
No doubt the central theme of the articles published by the second plaintiff and that of the
drama and movie is the same, though the emphasis in the drama and the movie is more on
human bondage, particularly of Indian women. The articles published by Ashwini Sarin also
contain an autobiographical account of the part actually played by him in the affair. He has
presented the whole affair in his own style. But that at the most would give the plaintiff
copyright in respect of these articles. There cannot, however, be a copyright in an event
which has actually taken place. There is a distinction between the materials upon which one
claiming copyright has worked and the product of the application of his skill, judgment,
labor and literary talent to these materials. Ideas, information, natural phenomenon and
events on which an author expends his skill, labor capital, judgment and literary talent are
common property and are not the subject or copyright; Indian Express Newspapers
(Bombay) Pvt. Ltd. V. Dr. Jogmohan Mundhara, AIR 1985 Bom 229.
No ownership in case of mere ‘idea’
A person may have a brilliant idea for a story, or for a picture, or for a play, and one which,
so far as he is concerned, appears to be original, but, if he communicates that idea to an
author or a play writer or an artist, the production which is the result of the communication
of the idea to the author or the artist or the playwright is the copyright of the person who
has clothed the idea in a form, whether by means of a picture, a play, or a book, and the
owner of the idea has no rights in the product: Donoghue V, Allied Newspaper Ltd., (1937) 3
ChD 503.
Producer can defeat rights of music composer or lyricist
The core of the question, whether the producer of a cinematograph film can defeat the right
of the composer of music or lyricist by engaging him; the key to the solution of this question
lies in the provisions (b) and (c) to section 17 of the Act reproduced above which put the
matter beyond doubt. According to the first of these provisions, viz., proviso (b), when a
cinematograph film producer commissions a composer of music or a lyricist for reward or
valuable consideration for the purpose of making his cinematograph film, or composing
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
music or lyric therefore i.e.: the sounds for incorporation or absorption in the sound track
associated with the film, which is already indicated, are included in a cinematograph film, he
becomes the first owner of the copyright therein and no copyright subsists in the composer
of the lyric or music so composed unless there is a contract to the contrary between the
composer of the lyric or music on the one hand and the producer of the cinematograph film
on the other.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Essential Commodities Act 1955
This is an Act to provide, in the interest of the general public, for the control of the
production, supply and distribution of and trade on commerce in certain commodities. It
extends to whole of India.
1. “Essential commodity” means –
 Cattle fodder, including oilcakes and other concentrates
 Coal including coke and other derivatives
 Component parts and accessories of automobiles
 Drugs
 Foodstuff, including edible oilseeds and oils
 Iron and steel, including manufactured products of iron and steel
 Paper, including newsprint, paperboard and straw board
 Petroleum and petroleum products
 Raw cotton, whether ginned or unginned, and cotton seed
 Raw jute
 Any other class of commodity which the central Government may, by notified
order, declare to be an essential commodity
2. “Food-crops” include crops of sugarcane.
3. “Sugar” means –
 Any form of sugar containing more than ninety percent of sucrose, including
sugar candy
 Khandsari sugar
 Sugar in process in vacuum, pan sugar factory or raw sugar produced there in
Tea is not foodstuff
In common parlance “food” is something that is eaten. In wider sense “food” may include
not only solid substances but also a drink. Still the fact remains that the substance called
“food” should possess the quality to maintain life and its growth, nutritive or nourishing
value so as to enable the growth, repair or maintenance of the body. Tea does not have any
nutritive value. Therefore, tea is not a “foodstuff”: S. Samuel, M. D. Harrisons Malayalam V.
Union of India, AIR 2004 SC 218.
The word “oil” used in regard to foodstuff is edible oil and not oils like kerosene (Tulsi Modi
v. State of Orissa).
To deal effectively with malpractices like blackmarketing, hoarding, profiteering and to
arrest the unjustified rise in prices of essential commodities by providing for the preventive
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
detention of persons likely to indulge in such practices. Prevention of Blackmarketing and
Maintenance of Supplies of Essential Commodities Bill was introduced in the Parliament.
The Ordinance recognized preventive detention as a necessary evil and accordingly sought
to provide for various safeguards to avoid scope for possible abuse of powers.
An Act to provide for detention in certain cases for the purpose of prevention of
blackmarketing and maintenance of supplies of commodities essential to the community
and for matters connected therewith.
The Central Government feels that if it is necessary for maintaining or increasing supplies of
any essential commodity or to secure equitable distribution, it may, by order, regulate or
prohibit the production, supply or distribution of those essential items.
The order may provide:
1. Regulation by license, permits, production or manufacture of any essential
2. For bringing under cultivation any waste or arable for growing specified food crops
3. For controlling the price
4. For prohibiting the withhold from sale of any essential commodity
Essential Commodities (Amendment) Act 2003
This amendment empowers the Central Government to direct that no producer, importer or
exporter shall sell or otherwise dispose of or deliver any kind of sugar or remove any kind of
sugar from the bonded godowns of the factory where it is produced.
The word sugar includes plantation of white sugar, raw sugar and refined sugar whether
indigenously produced or imported.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Trademarks Act 1999
The Trade and Merchandise Marks Act, 1958
It had served its purpose and review of the existing law was necessary because of
developments in trading and commercial practices, increasing globalization of trade and
industry, etc. a need for simplification and harmonization of trademark and to give effect tp
important judicial decision.
Hence the Trademark Act, 1999 incorporated the following:
1. The registration of trademarks for services in addition to goods.
2. Registration of trademarks which are imitation of well known trademarks not to be
3. Simplified procedure for registration with equal rights.
4. Enhancing punishment for the offences relating to trade marks.
5. Appointing an Appellate Board for speedy disposal of appeals.
6. The final authority for registration of certification trademarks to the Registrar
instead of the Central Government.
Certain Draft Rules were published in the exercise of powers given in the Trademarks Act
1999. These Draft Rules were called the Trademarks Rules 2002. These rules give in detail
the explanation of the terms used, along with the procedure for registration of Trademarks
application, about renewal, etc.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Patents Act 1970
It extends to the whole of India. Person who can apply for patents:
1. Is the first inventor of the invention
2. Is any person being an assignee of the person who claims to be the first invention
3. Is any representative of any deceased person who immediately, before his death was
entitled to make such an application
Application has to be for one invention only and has to be made in the prescribed form and
filed in the patent office.
When a provisional application is made, a complete specification has to be filed within 12
months otherwise the application is deemed to be abandoned.
Every International application under the Patent Co-operation Treaty for a patent may be
filed designating India only if a corresponding application has also to be filed before the
Controller in India. The date of filing in both the places has to be same.
The controller can ask for any details relating to the processing of the application of a patent
outside India:
No resident to apply for patent outside India without prior permission
The controller has the power to decide on matters of infringement if any.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The Consumer Protection Act, 1986
It is an Act to provide protection of the interests of consumers and for that purpose to make
provision for the establishment of consumer councils and other authorities for the
settlements of consumers’ disputes for matters connected therewith.
This Act extends to the whole of India except the State of Jammu & Kashmir
1. Appropriate Laboratory: one that is recognized by the Central Government, State
Government and one that is set up by or under any law and is maintained, financed
or aided by the Central or State Government for carrying out analysis or tests of
goods or find out if there is a defect.
2. Complainant:
i. A consumer or more consumers with same interest
ii. Any voluntary consumer associations
iii. Central Government or State Government
iv. In case of death of a consumer who has complained, the legal heir of
3. Complaint: means any allegation in writing made by a complainant that
 An unfair trade practice or restrictive trade practice has been adopted by any
trader or service provider
 That goods bought or agreed to be bought suffer from one or more defects
 The service hired or availed of or agreed to be hired or availed of suffer from
 The trader has charged for the goods a price in excess of the price fixed by law,
or that marked on the package or a price agreed upon by both parties
 Goods are hazardous to life & safety when used are using offered for sale (if
the trader knew of the danger)
4. Consumer:
 Is a consumer who buys goods for a consideration or hires or avails of
services and includes any user of such goods other than the person who buys
such goods
 It does not include a person who avails of such services for any commercial
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
5. Consumer Dispute: means a dispute where the person against whom a complaint
has been made, denies the allegations made in the complaint.
6. Defect: means any fault, imperfection or shortcoming in the quality, quantity,
potency, purity or standard which is required.
7. Deficiency: means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance which is required.
8. Manufacturer: means a person who
 Makes or manufacturer any goods or parts thereof
 Does not make or manufacturer, any goods but assemble parts made by
 Puts his own mark on any goods made by any other manufacturer
“Person” includes a form, whether registered or not, a Hindu undivided family, a cooperative society and every other association whether registered or not.
“Prescribed” means prescribed by rules made by the State Government or Central
“Regulation” means rule made by the National Commission under the Act.
“Restrictive Trade Practice” means a trade practice which brings about manipulation of price
or its conditions of delivery or to affect flow of supplies in the market which imposes on the
consumers, unjustified costs or restrictions.
“Spurious goods and services” means goods and services which are claimed to be genuine
but they are actually not so.
The act was amended in 1991, 1993, 2002 & 2005.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
Pharmacy Act 1948
Why the Act was introduced
Earlier there was no restriction in India on the profession of pharmacy. One would practice
this profession as any other profession. People having no education in pharmacy or
pharmacist’s chemistry or pharmacology were engaged in this profession.
The compounding, mixing or dispensing of medicines was being done by persons who were
not adequately trained in this line. The system was causing great harm to the health of the
people by wrong compounding.
Thus the government found it necessary to enact a law for the registration of the profession
and practice of Pharmacy.
In the field of medicines the role of the pharmacist is very important. Everyone cannot be a
pharmacist. Hence the Pharmacy Act came into existence in 1948. This law was amending by
the Amendment Act of 1959. The law laid down the formation of Pharmacy Councils in the
Centre and also in the States. The Councils prescribe the discipline for the same.
The Central Council of Pharmacy will prescribe the minimum standards of education and
approve courses of study and examinations for pharmacists.
Provincial Governments can prohibit dispensing of medicine if there is no personal
supervision of a registered pharmacist.
The 1948 Act was amended in 1959 to:
Extend the Act in former B States
To meet situations due to reorganization of States
The Amending Act of 1976
The University Grants Commission and All India Council for Technical Education were
included in the Pharmacy Council
The Comptroller and Auditor General of India or any person authorized by him will
audit the accounts of the Pharmacy Council
Persons from neighboring countries who migrated to India were allowed to register
as pharmacists
People working as compounders / dispensers courses according to the Drugs &
Cosmetics Act 1940, could register as pharmacists
Amending Act of 1982
This Act provides that the State government can appoint only a registered pharmacist.
Legal Environment and Advertising Ethics
Prof. Anita Mandrekar
The State Government shall provide a register of pharmacist and maintain that register
which will include:
The full name and residential address
The date of first admission to the register
The qualification for registration
The professional address
Qualifications for entry on first register:
A degree or diploma in pharmacy, a pharmaceutical chemistry, a chemist and
druggist diploma of an Indian University
Three years experience in dispensing or compounding drugs and a university degree
Passed only examination for compounders or dispensers recognized by the State
Engaged in compounding drugs for five years
The Act extends to the whole of India except Jammu & Kashmir.