The World’s Best Presentation on

Puffery

Overview

Topic: Puffery in advertising

Question: Is puffery acceptable?

My position: No, puffery is not acceptable.

Define terms

Present supporting arguments

Discuss a few cases

What this means for us as future advertisers/how we can make a change

What exactly is puffery?

Legal definitions: the practice by a seller of making exaggerated, highly

fanciful or suggestive claims about a product or service an exaggerated claim of quality exaggerated commendation especially for promotional

purposes: “hype”

FTC is fairly lenient with puffery

The FTC allows marketers to use puffery.

The reasonable consumer should know better.

Caveat emptor: means “let the buyer beware”

In calling for the outlaw of its use, a New Jersey judge called it “the seller’s privilege to lie.”

Puffery vs. False Advertising

Puffery = Subjective(Unverifiable claims)

A legal way of promoting a product or service through

hyperbole or oversized statements that cannot be

objectively verified.

Examples: “Best part of waking up is Folger’s in your cup”“Gillette. The best a man can get.”

False Advertising = Objective

(Verifiable claims)

Illegal marketing claims occurs when factually false

statements are used to promote a product.

Examples: • Stating that a car gets 35

miles per gallon when it actually only gets 30 mpg

• Stating that a knife is so sharp, it can cut through rock.

Argument 1: Puffery asserts unproven claims

Claims are not proven. Can be potentially inaccurate. They are not intentionally

false, but they do have false implications.

World’s Best Cup of Coffee

Argument 2: Puffery misleads consumers

2010 VitaminWater Case

An advocacy group called CSPI complained that VitaminWater’s health claims were misleading.

Puffery causes people to make irrational choices based on irrational desires.

Not all consumers know puffery when they see it. We cannot assume everyone is a “reasonable consumer.”

Research shows that people often believe what they are told in advertisements, or are unaware of the puffery.

Argument 3: Puffery is a form of fraud and deception

Fraud: the wrongful or

criminal deception intended to result in financial or personal gain.

a person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.

Puffery: exaggerated

commendation especially for promotional purposes.

Not literally false, but has false implications

Papa John’s TV spot

Domino’s weighs in on the Pizza Hut vs. Papa John’s trial

Argument 4: Puffery warps social values

Violates the Golden Rule: “Treat others how you would want to be treated.”

People don’t want to be deceived.

“All of us who professionally use the mass media are shapers of society. We can brutalize it, or we can help lift it to a higher level.” – Bill Bernbach

Argument 5: Puffery undermines our ability to make free choices

“The consumer isn't a moron; she is your wife. You insult her intelligence if you assume that a mere slogan and a few vapid adjectives will persuade her to buy anything. She wants all the information you can give her.” – David Ogilvy

A “free choice” is a choice that has as its basis on reason, as opposed to some irrational inclination, though the choice might have been initiated by some desire.

Puffery encourages compulsory behavior.

Argument 6: Puffery negatively affects our children

Children see about 40,000 ads per year.

Children lack cognitive defenses when viewing ads

Puffery is the main tool used in children’s advertising

Yale study: marketing that targets children with energy-dense, nutrient-poor foods is a likely contributor to the childhood obesity crisis. Results: children could not distinguish artificial

flavoring in fruit cereals or beverages Researchers concluded this result is due to

puffery Is it really “part of a balanced breakfast”??

So, does this mean advertisers are just a bunch of liars?

We have to face the facts… People lie and cheat to get ahead. Puffery is inevitable in a free market

economy. Competition is high, and some

companies will go as far as they can to make money.

If we banned puffery, most advertising would be illegal. But don’t lose hope! There are things

we can do to reduce puffery. It is possible to tell authentic stories

in a low-trust world. We can present the facts in a

creative, non-dry way. Plus, truth-telling can actually lead to

greater brand loyalty.

More truthful ads

Benefits of reducing puffery

Increased consumer knowledge More substitute products consumers

can consider Reduced market power for any

individual brand Lower barriers to entry for new

brands More product innovation More consumer choice and price

benefits

Industry Regulators & Advocacy Groups

Industry standards are adopted by individual business firms, by advertisers' associations, and often by the media—such as newspapers, magazines, radio, television and the Internet.

The National Advertising Division has established a National Advertising Review Board comprised of advertisers, advertising agencies, and the general public to deal with complaints.

A Children’s Advertising Review Unit (CARU), as the name implies, reviews advertising in all media targeting children 12 years old and younger.

Conclusions

FTC regulations should be tighter, or more advocacy groups should be formed to fight puffery. Reduce puffery in children’s advertising. The unethical nature of puffery gives advertisers

a bad reputation Why claim to be the best when you can do

better? We should seek methods of persuasion that won’t hurt your effort either way, and may you look even more creative!

We should invest in long-term change by committing to more truthful advertising.