Deceptive Advertising

"Advertising, whether or not it sells cars or chocolate, surrounds us and enters into us, so that when we speak we may speak in or with reference to the language of advertising and when we see we may see through schemata that advertising has made salient for us . . .. [S]trictly as symbol, the power of advertising may be considerable." (Schudson, 1984)

Advertising is the instrument, which can be used to persuade the consumer in a significant direction. It provides all the information regarding the product, service or event at which the people are being persuaded. "The more informative your advertising, the more persuasive it will be." (Ogilvy, 1971)

Regulating advertising:

In order to specify the ethical and legal boundaries for the advertisers the Federal, state, and local governments develop laws. These laws are also aimed at the protection of consumers and their rights of information and protect the advertisers from unethical practices of the competitors. These laws generally inc1ude following five directions, which need to be addressed by the advertisers.

1.  Use of false information in the advertisement, which can mislead the customers about the event, product or service.

2.  It has been made essential for the advertisers to provide the customers with maximized information to the customer, which can help him in making more informed decision.

3. Advertisers must use Authentication; they are required to fulfill all the claims they make in the advertisements.

4.  If businesses violate laws, they may face penalties and will be forced to Cease and Desist (stop) using the ad.

5.  Fines – a monetary penalty imposed on an organization for deceptive promotion.

6.  Corrective Advertising - new ads to correct the misleading ads. A business that is unfair and dishonest will not be successful for long. On occasion, a business may be tempted to exaggerate, however, it will find that it does not pay to destroy the confidence of customers (Chapter 18)

“To ensure the smooth operation of our free market system, the FTC enforces federal CONSUMER PROTECTION laws that prevent FRAUD, deception, and unfair business practices. The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. In interpreting the Act, the Commission has determined that, with respect to advertising, a representation, omission, or practice is deceptive if it is likely to mislead consumers and affect consumers' behavior or decisions about the product or service.” (Find Articles, 2007)

Definition:

Deceptive advertisement is a term, which is defined by the FTC as “a representation, omission, act or practice that is likely to mislead consumers acting reasonably under the circumstances. To be regulated, however, a deceptive claim must also be material.” (About Inc., 2007)

In the FTC's Deception Policy Statement it is stated that an add can be labeled as deceptive if it contains or lack information which can mislead consumers acting reasonably under the circumstances; and "material" - that is, important to a consumer's decision to buy or use the product. (Federal trade Commission)

Ten important benefits usually associated with sports marketing are brand/product differentiation, business-to-business marketing, demonstrating affinity with customers, driving retail floor traffic, driving sales, heightening consumer brand awareness, influencing consumer loyalty, merchandising, reinforcing brand/product positioning and showcasing brand/product attributes.

Most of these benefits can also be attained by using advertising techniques but what sponsorship provide is the one-to-one marketing power of sponsorship. Since the sports is liked by most of the people therefore well planned sports sponsorship can hit all these targets and more. A vast variety of channels and options available to the consumers, other sources of entertainment and a busy life schedule are the factors, which have given comparative advantage to the growth of sponsorship.

Sponsorship has now become an elegant and classy source of persuasive promotion of different brands.  The consumers welcome the sales messages packaged credibly through sponsorship. Sports sponsorships are becoming more of an integral part of consumers' lives.

The advertisement on the television is no more of use because through the sports sponsorship the consumers get the message with entertainment, excitement and interest. It should be understood by all the organizations, which are relying on the advertisement only, that the media advertisement is losing the attention of the people. Many organizations assessing the importance of sponsorship are transforming towards sponsorship.

FedEx has replaced United Parcel Service as the National Football League's overnight delivery corporate sponsor, signing a three-year deal worth more than $10 million, including rights fees and a team spending commitment of around $100,000 a year, per club.

The deal includes in-kind services and grants FedEx the use of club marks in local markets and league rights, like Super Bowl and Pro Bowl names and logos.

Already a heavy NFL media buyer, FedEx is expected to leverage with a substantial amount of NFL-themed creative. FedEx agency BBDO, N.Y. annually has as much tonnage as any agency in the Super Bowl. FedEx is also expected to stage at least one national promotion per year and possibly use NFL marks on its packaging, a la UPS' Olympic program.

The deal gives the overnight delivery leader all the rights it needs to leverage its biggest marketing expenditure: last year's $205 million, 27-year deal that changed the name of the Washington Redskins' home to FedEx Field.

Sources said UPS, which ran two football themed spots last season, wanted to keep its sponsorship, but FedEx promised more creative support. It also did not hurt that FedEx chair Fred Smith is a football nut. FedEx recently dropped its National Hockey League sponsorship after two years and a memorable spot, which ironically broke on last years Super Bowl. (Lefton, 2000)

In the last few decades the concept of sponsorship has gained much attention than ever before most of the Corporations are adopting it in order to promote their product and services, although it as a phenomenon clearly distinct from other established promotional activities. But still the main point remains the same as of the advertising and that is promotion. There is a clear difference between the methods adopted in sponsorship and other advertising techniques.

As other sports marketing technique sponsorship or advertisements related to the sports evens can also be deceptive. Different states are taking measures in order to minimize the consequences of such deceptive advertisement techniques. “An Orange County lawmaker said he introduced a bill that targeted deceptive advertising in sports -- namely by the Los Angeles Angels of Anaheim.

Assemblyman Tom Umberg's "Truth in Sports Advertising Act" was intended to tell baseball fans the Angels play their home games in Anaheim, not Los Angeles.

Under the bill, California pro sports teams that used one geographical area in their name but play in another would had to disclose that fact.

The bill required disclaimers on tickets, billboards and for at least five seconds in television ads.

The bill was passed by the Assembly and Senate, and was signed by the governor.

Team owner Arte Moreno Moreno dropped the Anaheim Angels name, saying the team could generate more revenue from broadcasters and sponsors by identifying itself with the Los Angeles region.