Truthful Advertising

•

• Hyperbolic Statements

• Not all the Truth

• Normal as Exclusive

• Image Advertising

• Sexual Appeal

•

Altai Tyre Ad

 

Advertising and Distortion of Values

• Ideals of Beauty

• Consumerism

• Anti-Consumerism

• Advertising for Children

Nagging Problem

 

 

CASE: Dove vs. Loreall

• Real Beauty Campaign

•

L`Oreal Ads

Evolution

•

True Colors

•

Onslaught

 

 

 

Marketing Harmful Products

• The Problem

•

Early Tobacco Ads

• Tobacco Advertising Today

• Instant Formula

• Fast Food

•

SuperSizeMe

 

Thank You For Smoking

Deceptive Pricing

• False Discounts

• Hidden TCO

 

 

Aggressive Selling

• The Problem

 

 

A

BC: Is it Ethical?

 

 

6.1

Abusing Market Power

 

 

Abuse of Market Power

The Problem

 

Market power means ability to influence the price or the quality without losing all customers. Technically, it means that demand curve for the company’s product is negatively sloped.

 

 

Market power as such does not constitute an ethical problem.

 

 

Abuse of market power

• Increase of price (earning abnormal profit)

• Decrease of quality (cutting cost to increase profit)

 

 

Abuse of Market Power

Evolution of Competition Law

 

 

This age-old problem had been regulated by law from the very beginning.

 

 

Roman Empire

LexJulia de Annona (about 50 BC). Heavy fines for everyone who tried to

stop the normal supply of grain.