Government and Laws

1. Advertising Regulation Government and Laws • Advertising • Mr. Yates

2. Government and Laws Agencies Food and Drug Administration (FDA) Consumer Product Safety Commission (CPSC) Equal Employment Opportunity Commission (EEOC) Occupational Safety and Health Administration (OSHA) Securities and Exchange Commission (SEC) Environmental Protection Agency (EPA) Federal Trade Commission (FTC) Objectives Explain the role of government and it’s impact on advertising Identify federal regulatory agencies and laws that protect consumers, workers, investors, etc. Provide examples of the impact of government regulations on advertising

3. The Roles of Government The stability of a government, of its structure, and of its legal system is always a key part of a business’s environmental scan. The government plays the roles of: Provider of services Customer Regulator Enforcer of free enterprise Monitor of the economy

4. The Role of Regulator In the U.S., most laws are designed to protect the individual’s: Safety Health Welfare

5. The Role of Regulator At the state and local levels, government agencies are involved with consumer protection by: Issuing licenses to people who sell services (hairstylists, electricians, etc.) Requiring zoning laws for building homes, businesses, or farms Maintaining health standards for restaurants and other food-handling businesses

6. The Bureau of Alcohol, Tobacco, and Firearms regulates the advertising of, well, alcohol, tobacco, and firearms. ATF

7. The USPS enforces laws for direct mail advertising It also prosecutes lotteries, fraud, and misrepresentation US Postal Service

8. The Federal Communications Commission enforces laws prohibiting: Obscenity Fraud Lotteries on radio and tv The FCC

9. The Role of Regulator Food and Drug Administration (FDA) Federal agency that regulates labeling and safety of food, drugs, and cosmetics sold in the United States. The Food and Drug Administration (FDA)regulates the labeling and safety of food, drugs, medical products and cosmetics sold in the U.S. The FDA also approves new products and reviews products already on the market. In an advertising sense, it regulates the advertising of the above

10. The Role of Regulator Securities and Exchange Commission (SEC) Federal agency that regulates the sale of securities (stocks and bonds), licenses brokerage firms and financial advisers, and investigates dealings among corporations. The Securities and Exchange Commission (SEC) regulates the sale of securities (stocks and bonds). It monitors and investigates any corporate actions that affect stock values to protect both the investors and the companies. Therefore, in an advertising regulation role, it regulates the advertising of securities.

11. Enforcer of the Free Enterprise System Federal Trade Commission (FTC) Federal agency responsible for enforcing the principles of a free enterprise system and protecting consumers from unfair or deceptive business practices. The Federal Trade Commission (FTC) enforces the principles of a free enterprise system and protects consumers from unfair or deceptive business practice. It has three bureaus: The Bureau of Consumer Protection The Bureau of Competition The Bureau of Economics It regulates all deceptive advertising.

12. Enforcer of the Free Enterprise System The Bureau of Consumer Protection has six specialized divisions: Advertising Enforcement Financial Marketing International Planning and information

13. Acts are sometimes passed as well For example, the Children’s Television Act was passed in 1990. It limits the amount of commercial airtime to 10.5 minutes per hour on weekdays and 12 minutes per day on weekends.

14. The industry does make attempts to regulate itself. One of the most important is the Council of the Better Business Bureau’s National Advertising Review Board (NARB). Complaints about advertising are sent to the National Advertising Division (NAD) for review. If they can’t come to a resolution – on to the FTC it goes! Self Regulation