Truthful Advertising
• 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
CASE: Dove vs. Loreall • Real Beauty Campaign
Evolution
 True Colors
Onslaught
Marketing Harmful Products • The Problem
Early Tobacco Ads
• Tobacco Advertising Today • Instant Formula • Fast Food
SuperSizeMe
Deceptive Pricing • False Discounts • Hidden TCO
Aggressive Selling • The Problem
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.
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