Regulation of Advertising and Promotion

Regulation of Advertising and Promotion This essay encircles the evaluation of two regulations i.e. self-regulation and federal regulation imposed by NAD and FTC respectively. The essay evaluates the significance of both the regulation agencies within the school premises where the alcohol companies have been given the permission to promote their product, as they are the sponsors of athletic events.
Both these regulation are quite different from one another. NAD is responsible for increasing the credibility of an advertisement by evaluating it on the basis of accuracy, truthfulness, in order to foster the confidence of public in that particular product. NAD examines that whether not all the claims being made in the advertisement are true. It also makes sure that the product being promoted on any platform should not mislead the audience as it can be a threat to consumers (National Advertising Division, 2013).
NAD may also play an effective role during the promotion of alcohol in school. It makes sure that the sponsors are not misleading the consumers by making them think that they must start the consumption of alcohol before their legal age. NAD would also examine that the whether the claims being made by the companies regarding their alcoholic products are accurate or they are again misleading the consumers. As there are children in school the alcohol companies must keep in mind the guidelines of Children Advertising Review Unit (CARU).
FTC or Federal Trade Competition makes fair competition possible between the rivals. FTC also deals with deceptive advertisement. It fosters free trade and restrains the growth of economy within any prescribed area. It oversees all the deceptive issues and then deals with it according to the Federal law. It promotes competition, restrains unfair method of competition and ensures the honest labeling of every product. This regulatory agency is also responsible for creating awareness among the companies about their rights (Protecting Americas Consumer, 2013).
Federal regulation imposed during the promotion by alcohol companies can also be quite effective as it will foster healthy competition, not letting any company to practice monopoly. It will let the audience present decide the brand of their choice based on the effectiveness of promotion. No company would be allowed to promote their product unless their product features are same as they have claimed.
The significance of both the regulation differs from one another. Self-regulation is imposed for the purpose of the letting the customers know that the product is credible, while federal regulation requires that the products of different firms must reach the customers as long as they are plausible, without any hindrance.
However one must keep in mind that the product is being promoted in a school and therefore not many companies should be allowed to enter the premises. Therefore in this case self-regulation can be more effective than federal regulations. The promotion in being done on local level by the firms and consequently the accuracy of information being given by firms is more important than fostering competition. The school can easily foster competition between the companies without imposing any federal regulation but self-regulation is the responsibility of almost all the alcohol companies promoting their product in school premises.
References
National Advertising Division. (2013). Retrieved September 6, 2013, from Better Business Bureau: http://www.bbb.org/us/national-advertising-division/
Protecting Americas Consumer. (2013). Retrieved September 6, 2013, from Federal Trade Competition: http://www.ftc.gov/bcp/