Ethical Advertising?

Sydney Fine

sf675318@ohio.edu

Ethics in Advertising

It might be hard to believe, but even in our capitalist society, advertisers have a code of ethics that is laid out by the Institute for Advertising Ethics. This code calls for the common objective of truth, distinction between advertisements and news/editorials, transparency, fairness to the consumer, and respect for the consumer's privacy.

However, I don't think that this code is being properly followed. 

Privacy

The sixth principle of the Principles and Practices for Advertising Ethics says, "Advertisers should never compromise consumers' personal privacy in marketing communications, and their choices as to whether to participate in providing their information should be transparent and easily made."

However, websites and search engines track our online movement in order to show us targeted ads. Most websites and apps ask us to "agree to terms and conditions" to use their services. The fine print of the terms usually involves tracking our information to sell to advertisers.

This doesn't seem to go along with the ethical code of transparency and easiness to make a choice to participate in providing information. 

And, consumers don't appreciate the lack of privacy. According to a study by Pew Research Center, 68% of users say they disapprove of targeted advertising because they do not like having their behavior tracked and analyzed. 

Influencers 

Principle four of Principles and Practices for Advertising Ethics says, "Advertisers should clearly disclose all material conditions, such as payment or receipt of a free product, affecting endorsements in social and traditional channels, as well as the identity of endorsers, all in the interest of full disclosure and transparency."

However, there are thousands, if not millions, of "influencers" online who get paid to advertise products and services on social media. Many of these advertisements are not clear to the consumer. 

Picture source: @Letthelordbewithyou Scott Disick Instagram page

The Advertising Standards Authority (ASA) in the UK recently punished and warned over 100 Instagram influencers who did not clearly indicate that their posts were paid endorsements by using the hashtag #ad or #spon, short for advertisement or sponsored.  Where is our advertisement watchdog looking out for consumers like this in the US?

Celebrities and influencers are convincing their followers to buy products with their recommendations that have been paid for. It is clear that the ethical principle of disclosure and transparency has not been keeping up with the rising use of social media advertising. 

With the ethical codes not being followed, I think the Federal Trade Commission needs to crack down on violations in a similar way that the ASA has done. That is, if the public's best interest is really a priority.