2. AGENDA
INTRODUCTION
TYPES OF UNETHICAL ADVERTISEMENTS
APPLE, ACCC AGREE ON $2.25M 4G FINE
APPLE'S SIRI SUED AGAIN FOR EXAGGERATED ADS
GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR IMPROPER
MARKETING AND UNETHICAL BEHAVIOR
CONCLUSION & REFERENCES
3. INTRODUCTION
Ethics is a branch of philosophy which seeks to address
questions about
Morality
About concepts such as good and bad
Right and wrong
Justice and virtue
Reasons for Advertising
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image
Introduction of a new product or service
Increasing the buzz-value of the brand or the company
4. INTRODUCTION
Unethical Advertisement
When it has degraded or underestimated the substitute or
rival's product
When it gives false or misleading information on the value
of the product
When it fails to give useful information on the possible
reaction or side effects of the product
When it is immoral
5. TYPES OF UNETHICAL ADVERTISEMENTS
Type of Unethical Advertising and Marketing
Surrogate
Puffery
Exaggeration
Unverified claims
Women used as sex symbols for promoting products
Comparative advertisements
Use of children in advertising
Vulgar advertising
6. APPLE, ACCC AGREE ON $2.25M 4G FINE
Summary: Apple and the Australian Competition and Consumer
Commission (ACCC) have agreed that Apple should pay a
$2.25 million penalty for calling its iPads "4G", even though
they don't work on Australian 4G networks
Facts:
iPad with Wi-Fi and 4G could connect to Telstra's LTE network on:
Its web page and online store
Its own stores
Information and materials provided to resellers
Information and materials provided by Apple on reseller sites
7. APPLE, ACCC AGREE ON $2.25M 4G FINE
Impact:
Provided unconditional refunds to all potentially affected iPad
customers
Altered its worldwide marketing materials
Apple also changed the designator globally
Approach:
Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people
8. APPLE'S SIRI SUED AGAIN FOR
EXAGGERATED ADS
Summary: Siri, the voice-activated personal assistant program
built into the Apple iPhone 4S, has been sued again for
allegedly overselling its abilities in advertising and TV
commercials
Facts:
False Claims of Siri is user friendly
Siri to make appointments,
Find restaurants
Even to learn the guitar chords to classic rock songs
Tasks as easily accomplished "just by asking" Siri,”
9. APPLE'S SIRI SUED AGAIN FOR
EXAGGERATED ADS
Impact:
Fine was paid
Advertisement was modified
Approach:
Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people
Moral Right- An ethical decision is one that best maintains and
protects the fundamental rights and privileges of the people
affected by it
10. GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR
IMPROPER MARKETING AND UNETHICAL BEHAVIOR
Summary: GlaxoSmithKline (GSK), to pay $3 billion in criminal
and civil liabilities in the largest healthcare fraud settlement in
US history. GSK was caught promoting several drugs for
unapproved uses, failing to report safety data, paying
kickbacks to physicians, and price reporting
Facts:
Unapproved uses (or off-label uses) - Paxil
Failing to report safety data – Avandia
Kickbacks
11. GLAXOSMITHKLINE FINED $3 BILLION BY FDA FOR
IMPROPER MARKETING AND UNETHICAL BEHAVIOR
Impact:
Fine was paid
Prison to CEO, Managers and Executive
Global brand image was effected
Approach:
Utilitarian - An ethical decision is one that produces the
greatest good for the greatest number of people