Corrective advertising is one of the most controversial regulatory proposals made in recent years. This article provides an in-depth look at this FTC program, analyzes the theory behind FTC's management of this power, and reviews research findings. It then proposes a significant change in the program to make it more equitable and efficient than in the past.
Get full access to this article
View all access options for this article.
References
1.
AakerDavid A. (1974), “Deceptive Advertising,” in Consumerism: Search for the Public Interest, AakerDavid A., and DayGeorge S., eds., New York: Free Press.
2.
American Bar Association (1969), Report of the American Bar Association to Study the Federal Trade Commission, Washington, DC: The Association.
ArmstrongGary M., GurolMetin N., and RussFrederick A. (1979), “Detecting and Correcting Deceptive Advertising,”Journal of Consumer Research, 6 (December), 237–246.
5.
ArmstrongGary M., and RussFrederick A. (1975), “Detecting Deception in Advertising,”MSU Business Topics, 23 (no. 2), 21–32.
6.
ArmstrongGary M., RussFrederick A., and GurolMetin (1981), “Attitude and Belief Changes from Corrective Ads,” working paper, University of North Carolina.
7.
Beauty-Rama Carpet Center (1973), C-2398 (May 2), 82 FTC 1340.
BernhardtKenneth, KinnearThomas C., MazisMichael B., and ReeceBonnie (1981), “Impact of Publicity on Corrective Advertising Effects,” in Advances in Consumer Research, MonroeKent B., ed., 8, 414–415.
10.
Boise Tire Co. (1973), C2425 (July 16) 83 FTC 21.
11.
BrozenYale (1972), “No Scarlet Letters: Advertising Has Come under Dangerous and Unfair Attack,” advertisement, Wall Street Journal, 179 (March 7), 16.
12.
Campbell Soup Co. (1970), 77 FTC 664.
13.
CohenDorothy (1980), “The FTC's Advertising Substantiation Program,”Journal of Marketing, 44 (Winter), 26–35.
14.
CornfieldRichard A. (1977), “A New Approach to an Old Remedy: Corrective Advertising and the FTC,”Iowa Law Review, 61 (no. 2), 439–474.
15.
“Corrective Advertising Orders and the FTC” (1971), Harvard Law Review, 85 (no. 2), 477–506.
16.
CoxEdward, FellmethR., and SchultzJ. (1969), The Consumer and the Federal Trade Commission, Washington, DC: American Bar Association.
17.
Curtis Publishing Co. (1971), 78 FTC 1472, 1514.
18.
DyerRobert F., and KuehlPhilip G. (1974), “The Corrective Advertising Remedy of the FTC: An Experimental Evaluation,”Journal of Marketing, 38 (January), 48–54.
19.
DyerRobert F., and KuehlPhilip G. (1978), “A Longitudinal Study of Corrective Advertising,”Journal of Marketing Research, 15 (February), 39–48.
20.
Firestone Tire and Rubber Co. (1972), 8818, 81 FTC 393.
21.
“First Amendment Limitations on FTC Corrective Advertising Orders” (1978), Georgetown Law Review, 66 (August), 1473–1513.
22.
FTC (1979), “Consumer Information Remedies,”FTC Bureau of Consumer Protection (June).
23.
GardnerDavid M. (1975), “Deception in Advertising: A Conceptual Approach,”Journal of Marketing, 34 (January), 40–46.
HoyerWayne D., JacobyJacob, and NelsonMargaret (1982), “A Model for the Development, Evaluation, and Supplementation of Remedial Advertising Statements,” in Proceedings, Southwestern Marketing Association, CorriganD., KraftF., and RossR., eds., 9–12.
26.
HuntH. Keith (1973), “Effects of Corrective Advertising,”Journal of Advertising Research, 13 (October), 15–24.
27.
HyunMontgomery K. (1978), “Initial Decision: FTC v. American Home Products and Clyne Maxon,” FTC Dkt. 8918 (September 1).
28.
Institute for Public Interest Representation (INSPIRE) (1976), Petition for Rulemaking before the Federal Trade Commission, Washington, DC: The Institute.
ITT Continental Baking Co. (1973), 8860, 83 FTC 865.
31.
JacobyJacob, and SmallConstance (1975), “The FDA Approach to Defining Misleading Advertising,”Journal of Marketing, 34 (October), 65–68.
32.
KassarjianHarold H., CarlsonCynthia J., and RosinPaula E. (1975), “A Corrective Advertising Study,” in Advances in Consumer Research, 2, SchlingerM. J., ed., 631–642.
33.
KinnearThomas C., TaylorJames, and Gur-ArieOdee (1984), “Affirmative Disclosure: Long-term Monitoring of Residual Effects,”Journal of Business Policy and Marketing, 2, forthcoming.
34.
Lens Craft Research and Development Co. (1974), D8950 (September 4), 84 FTC 355.
35.
Matushita Electric of Hawaii Inc. (1971), C1867 (February 19), 78 FTC 353.
36.
MazisMichael B. (1979), “Can and Should the FTC Restrict Advertising to Children,” in Advances in Consumer Research, 6, WilkieWilliam L., ed., 3–6.
37.
MazisMichael B. (1981), “The Effects of FTC's Listerine Corrective Advertising Order,” A Report to the FTC, Washington, DC: FTC.
38.
MazisMichael B., and AdkinsonJanice (1976), “An Experimental Evaluation of a Proposed Corrective Advertising Remedy,”Journal of Marketing Research, 13 (May), 178–183.
39.
MazisMichael B., McNeillDennis L., and BernhardtKenneth (1981), “Day after Recall of Listerine Corrective Commercials,” working paper, Washington, DC: American University.
40.
MizerskiRichard W., AllisonNeil K., and CalvertStephen (1980), “A Controlled Field Study of Corrective Advertising Using Multiple Exposures and a Commercial Medium,”Journal of Marketing Research, 17 (August), 341–348.
41.
National Carpet (1973), C-2399 (May 2), 82 FTC 1354.
Payless Drug Stores (1973), C2406 (May 25), 82 FTC 1473.
44.
PitofskyRobert (1977), “Beyond Nader: Consumer Protection and the Regulation of Advertising,”Harvard Law Review, 90 (no. 4), 661–695.
45.
PrestonIvan L. (1976), “A Comment on 'Defining Misleading Advertising' and 'Deception in Advertising',”Journal of Marketing, 35 (July), 54–57.
46.
PrestonIvan L. (1983), “Research on Deceptive Advertising: Commentary,” in Information Processing Research in Advertising, Hillsdale, NJ: Erlbaum, 289–305.
47.
RatnerEllis (1978), FTC Staff Report on Television Advertising to Children, Washington, DC: FTC, Bureau of Consumer Protection.
48.
“Recent Development: First Amendment Restrictions on the FTC's Regulation of Advertising” (1978), Vanderbilt Law Review, 31 (no. 2), 349–373.
49.
Rhode Island Carpets (1974), 8946, 84 FTC 555.
50.
RJR Foods Inc. (1973), C2424 (July 13).
51.
RussoJ. Edward, MetcalfBarbara, and StephensDebra (1981), “Identifying Misleading Advertising,”Journal of Consumer Research, 8 (September), 119–131.
52.
SawyerAlan G., and SemenikRichard J. (1978), “Carryover Effects of Corrective Advertising,” in Advances in Consumer Research, 5, Keith HuntH., ed., 343–351.
53.
ScammonDebra L., and SemenikRichard J. (1982), “Corrective Advertising: Evolution of the Legal Theory and Application of the Remedy,”Journal of Advertising, 11 (no. 1), 10–20.
54.
Shangri La Industries, Inc. (1972), C2301, 81 FTC 596.
55.
STP Corp. (1976), C-2777, 87 FTC 56.
56.
Sugar Information, Inc. (1974), C2308 (November 1), 81 FTC 711.
57.
Sun Oil Co. (1974), 8889, 84 FTC 247.
58.
ThainGerald (1972–73), “Advertising Regulation: The Contemporary FTC Approach,”Fordham Urban Law Journal, 1, 349–394.
59.
TyebjeeTyzoon T. (1982), “The Role of Publicity in FTC Corrective Advertising Remedies,”Journal of Marketing and Public Policy, 1 (Winter), 111–122.
60.
Warner–Lambert (1975), 8891, 86 FTC 1398.
61.
“Warner–Lambert v. FTC: Corrective Advertising Gives Listerine a Taste of Its Own Medicine” (1978), Northwestern University Law Review, 73 (December), 957–979.
62.
Wasems, Inc. (1974), C2524 (July 23), 84 FTC 209.
63.
WilkieWilliam L. (1973), Consumer Research and Corrective Advertising, Cambridge, MA: Marketing Science Institute.
64.
WilkieWilliam L. (1974), “Research on Counter and Corrective Advertising,” in Advertising and the Public Interest, DivitaS. V., ed., Chicago: American Marketing, 189–202.
65.
WilkieWilliam L. (1975), Applying Attitude Research in Public Policy, Cambridge, MA: Marketing Science Institute.
66.
WilkieWilliam L. (1981), Affirmative Disclosure: A Survey and Evaluation of FTC Orders Issued from 1970–1977, Washington, DC: Federal Trade Commission.
67.
WilkieWilliam L. (1982), “Affirmative Disclosure: Perspectives on FTC Orders,”Journal of Marketing and Public Policy, 1 (Winter), 95–110.
68.
WilkieWilliam L., and FarrisPaul (1975), “Comparison Advertising: Problems and Potential,”Journal of Marketing, 39 (October), 7–15.
69.
WilkieWilliam L., and GardnerDavid M. (1974), “The Role of Marketing Research in Public Policy Decisionmaking,”Journal of Marketing, 38 (January), 38–47.
70.
Yamaha International, Inc. (1974), C2747 (October 23), 86 FTC 973.