The historic development of modern US advertising regulation
2015
Purpose – The purpose of this article is to examine the US history of advertising regulation, both formal and informal and public and private – particularly focused on advertising that is likely to mislead consumers about attributes, characteristics or performance of advertised products. Design/methodology/approach – This research examines both primary sources such as legal challenges and contemporary writings as well as secondary sources. Findings – Although early court decisions were reluctant to find advertising to be dishonest, the Post Office was the first government agency to challenge blatantly false advertisements through criminal prosecution. At the end of the 1800s, the nascent advertising industry developed an interest in regulating truthfulness to enhance advertising credibility. It proposed a model state criminal code and advertising clubs, followed by local Better Business Bureaus, began to informally resolve advertising dispute. In 1914, the Federal Trade Commission (FTC) was established wi...
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