A few nonprofit watchdog and advocacy organizations—Commercial Alert, as well as the Better Business Bureau and the National Consumers League—compensate in many ways for some of the shortcomings of the Federal Trade Commission (FTC) and other government agencies in monitoring the excesses of commercialism and false and deceptive ads.

Excessive Commercialism

Since 1998, Commercial Alert has been working to “limit excessive commercialism in society” by informing the public about the ways that advertising has crept out of its “proper sphere.” For example, Commercial Alert highlights the numerous deals for cross-promotion made between Hollywood studios and fast-food companies. These include Warner Brothers and Hardee’s teaming up for Man of Steel and DreamWorks Animation partnering with McDonald’s for family-friendly flicks including The Croods and How to Train Your Dragon 2.

These deals not only helped movie studios make money as DVD sales declined but also helped movies reach audiences that traditional advertising can’t. As Jeffrey Godsick, Fox’s Executive VP of marketing, has said, “We want to hit all the lifestyle points for consumers. Partners get us into places that are nonpurchasable (as media buys). McDonald’s has access to tens of millions of people on a daily basis—that helps us penetrate the culture.”³³

Founded in part by longtime consumer advocate Ralph Nader, Commercial Alert is a Portland, Oregon–based nonprofit organization and a lonely voice in checking the commercialization of U.S. culture. Some of its other activities have included challenges to specific marketing tactics, such as when HarperCollins Children’s Books created the series “Mackenzie Blue,” which included “dynamic corporate partnerships,” or product placements woven into the stories written by an author who is also the founder of a marketing group aimed at teens. In constantly questioning the role of advertising in democracy, the organization has aimed to strengthen noncommercial culture and limit the amount of corporate influence on publicly elected government bodies.

The FTC Takes on Puffery and Deception

Since the days when Lydia Pinkham’s Vegetable Compound promised “a sure cure for all female weakness,” false and misleading claims have haunted advertising. Over the years, the FTC, through its truth-in-advertising rules, has played an investigative role in substantiating the claims of various advertisers. A certain amount of puffery—ads featuring hyperbole and exaggeration—has usually been permitted, particularly when a product says it is “new and improved.” However, ads become deceptive when they are likely to mislead reasonable consumers based on statements in the ad or because they omit information. Moreover, when a product claims to be “the best,” “the greatest,” or “preferred by four out of five doctors,” FTC rules require scientific evidence to back up the claims.

A typical example of deceptive advertising is the Campbell Soup ad in which marbles in the bottom of a soup bowl forced more bulky ingredients—and less water—to the surface. In another instance, a 1990 Volvo commercial featured a monster truck driving over a line of cars and crushing all but the Volvo; the company later admitted that the Volvo had been specially reinforced and the other cars’ support columns had been weakened. A more subtle form of deception featured the Klondike Lite ice-cream bar—”the 93 percent fat-free dessert with chocolate-flavored coating.” The bars were indeed 93 percent fat-free, but only after the chocolate coating was removed.³⁴

In 2003, the FTC brought enforcement actions against companies marketing the herbal weight-loss supplement ephedra. Ephedra has a long-standing connection to elevated blood pressure, strokes, and heart attacks and has contributed to numerous deaths. Nevertheless, companies advertised ephedra as a safe and miraculous weight-loss supplement and, incredibly, as “a beneficial treatment for hypertension and coronary disease.” According to the FTC, one misleading ad said: “Teacher loses 70 pounds in only eight weeks. … This is how over one million people have safely lost millions of pounds! No calorie counting! No hunger! Guaranteed to work for you too!” As the director of the FTC’s Bureau of Consumer Protection summed up, “There is no such thing as weight loss in a bottle. Claims that you’ll lose substantial amounts of weight and still eat everything you want are simply false.”³⁵ In 2004, the United States banned ephedra.

When the FTC discovers deceptive ads, it usually requires advertisers to change them or remove them from circulation. The FTC can also impose monetary civil penalties for companies, and it occasionally requires an advertiser to run spots to correct the deceptive ads.