ABSTRACT

Advertising to children-defined by government as 12 and under-raises very important ethical, as well as legal, questions. Perhaps there is a no more vulnerable audience in America that receives the amount of advertising both online and in traditional media. Advertising to children is prohibited in a growing number of countries and has been under scrutiny and attack by consumer groups in America over the past fifty years. The Federal Trade Commission has investigated and regulated children’s advertising over that period of time, and the advertising industry has committed major resources, through the Children’s Advertising Review Unit (CARU), and Children’s Food and Beverage Initiative (CFBI), to self-regulating advertising to this targeted audience. Companies advertising to children spend annually in the millions of dollars and

place ads on traditional media-television, radio and print-as well as increasingly online and in new media, including Internet, apps, DVDs, and mobile. This includes when playing computer games and video games on company websites where the products are featured. In addition, in-store advertising, promotions and event sponsorships are used. Products advertised include toys, fast foods, cereals and beverages, games and clothing. The question of whether or not it is ethical to advertise to children age 12 and

under began in the 1970s and continues until today. This chapter explores the historical record of government investigation, often directly impacted by Congressional oversight; action taken on a case-by-case approach by government

enforcement and industry self-regulation; and the legal and ethical options available as we move forward in “doing the right thing” for children. This must be a candid and thorough review and evaluation, taking into consideration what child experts, the medical community and the government and industry urge and believe. We will explore what we have learned over the years in addressing this “right versus right” ethical dilemma. Government has not banned advertising directed to children 12 and under in the

United States, in part because Congressional action has not allowed the federal regulators to use their authority to do so. This will be discussed in the next section of this chapter covering in detail the FTC’s Children’s Advertising Rulemaking in 1978. This has focused regulation on a case-by-case approach that depends on whether the ad is deceptive and on self-regulation initiatives by the advertising industry. In determining if it is appropriate to advertise, in general, to children, or with

respect to certain products and services, and if so what limitations should be applied, we consider two central issues. The first is children’s limited cognitive ability to understand the persuasive nature of advertising, as well as the impact from the ways in which ads are directed to them. The basic ethical tenet is that the audience must understand that the content directed to them is advertising. “There is a great deal of research that shows children don’t distinguish between content and advertising,” said Kathryn Montgomery, a professor of communications at American University and an advocate of children’s media protections.1