Unit 11.

Advertising and the Consumer

Read and translate the text.

Advertising is everywhere. Each day, American consumers are bombarded by ads on radio and television, in newspapers and maga­zines, on billboards and bus shelters, even on blimps in the air and benches in the park.

The United States has always been a commercial society; but in recent years, advertising has become more widespread. In 1992, over $130 billion was spent on advertising in the mass media, and this doesn’t include non–mass–media advertising like direct mail ads. Advertising has also become more persistent and intrusive. As a result, people sometimes try to avoid advertising by flipping the channel dur­ing TV commercials or tossing unopened junk mail into the trash can.

The First Amendment to the U.S. Constitution protects advertis­ing as an expression of free speech. However, courts have ruled that government may regulate and even prohibit certain types of adver­tising. One of the most controversial types of advertising involves to­bacco. Tobacco advertising is controversial because smoking is the nation’s leading preventable cause of death. More people die from smoking each year than from AIDS, accidents, fires, homicides, sui­cides, and drunk driving combined. As a result, there have been ef­forts to eliminate or restrict tobacco advertising. In 1972, tobacco advertising was prohibited on radio and television, but it is still al­lowed in magazines, in newspapers, and on billboards and other forms of outdoor advertising. Tobacco ads on billboards are particu­larly controversial. Unlike newspapers and magazines, which can be ignored or thrown away, billboards make the American public a “cap­tive audience” to huge, intrusive ads that can’t be avoided. What’s more, numerous studies have shown that more billboards are located in neighborhoods where poor people live than elsewhere.

Advertising can, of course, be beneficial. For example, merchants use advertising to tell potential customers about their products. Ads can also help consumers by telling them about new goods and ser­vices and by providing other useful information. Although ads can be helpful, they can also mislead, deceive, and confuse.

Ads sometimes mislead consumers through vague claims or, in a few cases, outright lies. Other times, ads try to create a desire for products that consumers don’t really need or want. Many ads appeal to emotion rather than provide the kind of factual information need­ed to make a wise buying decision.

The federal and state governments have laws that prohibit false or deceptive advertising. However, these laws are difficult to enforce, and deception can take many forms.

When the public is widely exposed to a misleading ad, the FTC can order the seller to stop the false advertising. It can also order cor­rective advertising. This means that the advertiser must admit the deception in all future ads for a specified period of time. For ex­ample, a well–known mouthwash company advertised that its prod­uct cured sore throats and colds. When an investigation proved this claim false, the FTC ordered that all new ads state that the previous claims were untrue.

Although, as a general rule, false or misleading ads are illegal, one type of ad is an exception to this rule. Ads based on the seller’s opin­ion, personal taste, or obvious exaggeration are called puffing. While perhaps not literally true, ads that puff are not illegal. For example, a used car dealer that advertises the “World’s Best Used Cars” is engaged in puffing. A reasonable person should know better than to rely on the truthfulness of such a statement. Similarly, an­nouncing a sale at a furniture store, an ad reads: “2,750 items of fur­niture have to disappear tonight’.” This ad is not literally true; but again, a reasonable consumer should understand that it is just “seller’s talk.”

In contrast, consider an ad that reads: “Giant Sale–Top–Quality CD Players, formerly $300, now just $225.” If the compact disc players were never sold at $300 and could have been purchased anytime for $225, this ad is illegal. It misleads consumers about an important fact concerning the product. The ad is not puffing, because it is not based on the seller’s opinion, personal taste, or obvious exaggeration.

The difference between illegal advertising and puffing may be small, so consumers should be on guard. If an ad tends to mislead about an important fact concerning the product, it is illegal; but if the ad is merely an exaggeration or a nonspecific opinion, it is proba­bly puffing and legal.

Find the equivalents of the following words and expressions in the text.

Широко распространенный, средства массовой информации, настойчивая и навязчивая реклама, телевизионные рекламные ролики, свобода слова, сомнительная реклама, причина смерти, рекламный щит, сбивать с толку, откровенная ложь, взывать к чувствам, корректирующая реклама, признать обман, очевидное преувеличение, торговец подержанными автомобилями, быть начеку.

Answer the questions:

1. Why has advertising become more widespread in recent years?

2. What is non–mass–media advertising?

3. Do you sometimes try to avoid advertising? How?

4. Do you agree that “advertis­ing is an expression of free speech”? Why? Why not?

5. How is tobacco advertising controversial? Is it legal in Russia? Are there any restrictions?

6. Give examples of beneficial advertising.

7. How can ads mislead consumers?

8. Do we have any laws that prohibit false or deceptive advertising in Russia?

9. What is the difference between illegal advertising and puffing? Give your examples.

Read the text and answer the questions:

The Guaranteed Jeep

Janine Gomez received a mailgram addressed to her with the word URGENT in bold letters across the front. She opened the envelope and read the letter. It told her she was a guaranteed prizewinner. The two prizes listed in large, bold letters were a brand new jeep and a big–screen color television. In much smaller print, the letter said that there were other valuable prizes that she could win in­stead. No matter what, she was preselected as a certain winner.

All she had to do to claim her prize was call a direct number: 1–900–NEW–JEEP. In even smaller print, the letter informed her that the call would cost $5 for the first minute and $3 for each addition­al minute and that it would take from three to five minutes to ade­quately discuss her prize. Although this was an expensive call, Janine decided that the prize she would get would be worth the cost of the call.

1. Assume that the prize Janine is offered is a kitchen appliance available in grocery stores for less than $2. What should she do?

2. What mistake, if any, did she make in deciding to respond to the mailgram?

3. Have you or has anyone in your family ever received notice of a guaranteed prize in the mail? How did you respond?

4. What, if anything, was deceptive about the mailgram?

5. In what way, if any, should the law regulate situations such as the one encountered by Janine?

Problem–solving:

To determine the impact of one form of advertising on you and your community, conduct a survey of outdoor advertising in your neigh­borhood and around your school. Next time you travel from home to school, note the following:

1. How many billboards do you see? If you don’t see any, do you see any other forms of outdoor advertising? Explain.

2. How many advertisements do you see for alcoholic beverages and cigarettes? How many for other products? What percentage of the outdoor ads you see are for alcohol and tobacco?

3. How many billboards are located in inappropriate locations, such as near schools, churches, homes, or parks?

4. What is the character of the neighborhood around your school and home? Compare your answers with those of other students. Are there any differences in the number of outdoor ads among different types of neighborhoods? (Note: If you don’t see any outdoor advertising at all, it is probably because your city or town has an ordinance prohibiting this form of advertising.)

Problem–solving:

Study ads that appear in your local newspaper. Bring in three exam­ples of puffing. For each, explain why the ad is not illegal, even though it may not be literally true.

Match the words on the left with the correct definition on the right:

Ad	influence.
Amendment	get rid of.
Prohibit	make effective.
Eliminate	advertisement.
Restrict	an investigation or analysis of a market.
Beneficial	change proposed or made to a rule, regulation, etc.
Enforce	a telegram delivered by the postal service with the regular mail.
Survey	helpful.
Mailgram	limit.
Impact	forbid.