Marketing Ethics and Misbehavior

Marketing Ethics and Misbehavior

Marketing ethics refers to standards and principles that acceptable in the advertising (Saucier, 2008). Firms are guided by regulations or laws for them to conduct appropriate marketing in order to protect the consumers. The firms, while doing ethical marketing, consider the impact on consumers while they are advertising about their products. The adverts should be honest and genuinely depict product characteristics. Market ethics focuses on building a strong relationship between the consumer and the company. The marketing process is aimed at increasing the sales revenue for the company and increase the number of customers. Any misleading adverts may have the effect of adversely affecting the customers and the company may be petitioned to pay for damages caused. Marketing misbehavior will occur when the company has misleading or unethical advertising policies. The various agencies and rules guide the regulations of advertising and protect consumers. The paper covers consumers protections laws that help the organization to acts ethically and ensures the products of a firm are safe and healthy for consumer consumption. The article concludes by providing examples of companies that have breached marketing ethics.

Federal Trade Commission

The Federal Trade Commission (FTC) was established in 1914 under the Federal Trade Commission Act as an independent agency of the U.S. government. The primary objectives of the agency are the enforcement of consumer protection and compliance of antitrust law. Consumer protection laws ensure that consumers have enjoyed their rights and the information provided by marketers is accurate. The firm should conduct ethical marketing to ensure the information provided to the consumers are accurate and not misleading. Antitrust laws ensure there is fair competition among businesses.

The agency eliminates barriers such as monopoly and unfair business practices. A monopoly may impact adversely on consumers, such as an increase in prices and low-quality products. Besides, the agency making it difficult for companies wishing to merge; hence, promoting efficiency and reduces competition. Organizations and individuals failing to comply with Antitrust laws may face criminal or civil charges (Campbell & Grimm, 2019).

Food and Drugs Administration (FDA)

The Food and Drug administration agency is tasked with protecting the public health by ensuring the safety of biological products, medical devices, veterinary drugs, medical drugs, cosmetics and safety of the nation’s food supply. Besides, FDA regulates tobacco products in the processes of manufacturing, marketing and distribution, in order to reduce consumption by minors and public health. The agency is also tasked with promoting quick innovation of medical products and existing ones are made more affordable, safer and more effective.  FDA ensures that the country can access adequate food supply and medical products in case of natural calamities and terrorist attacks. The agency makes the rules about food and drug administration (Oria, Wallace & Institute of Medicine U.S., 2010).

Fair Debt Collection Practice Act (FDCPA)

The Act was established in 1977 and it has been subsequently amended. The primary purpose of FDCPA is to prevent abusive debt collection policies by organizations. It has an effect of protecting the consumers from an unfair collection by business people. The Act provides the consumer with an opportunity to request information from firms to verify their debts before making the payments. FDCPA provides guidelines on the procedure to be used for debt collectors in conducting business and defines the rights of the consumers. Debt collectors are agents of the company and are tasked to collect debts from consumers on behalf of the firm. FDCPA also prescribes fines and penalties to be paid by parties in case of the breach of the Act. Before the introduction of the Act, consumers used to suffer abusive collection policies and they were denied information about their debt (Fish, 2019).

Conclusion

Coca-Cola Company is one of the companies that can be trusted. It is a multinational company and complies with the laws and rules of the country they have business operations. Coca-Cola has many corporate social responsibility programs all over the world. Such programs include waste-reduction, environmental conservation and poverty eradication. Facebook Inc. is a company that can be distrusted; the firm tends to violate privacy rights by disclosing the information to marketers. Besides, the firm has been accused of interfering with the Donald Trump Presidential election that created negative publicity for the company. Facebook to regain trust it need to have better control on privacy and stop meddling with other countries elections. The paper covered marketing ethics and misbehavior, regulations for consumer protection, Federal Trade Commission, Food and Drugs Act and Fair Trade Collection Practice Act. The regulations and agencies are crucial in guiding business conduct and protecting consumer rights.