Advertising Disclosures: Clear and Conspicuous or Understood and Used?

Abstract

Although the frequency of disclosure usage has increased in recent years, adherence to individual disclosure regulations, such as those mandated under the “clear and conspicuous” standard guidelines, has declined or remained unchanged in the context of television advertising. Investigation of the cause of declining or static adherence levels would be useful to regulators and industry professionals to consider for advertising disclosures when designing and evaluating guidelines. This article offers a discussion of issues related to implementation of information disclosures on products and in marketing communications. The authors suggest that there are circumstances in which there is a need for alternatives to natural market mechanisms and message-focused regulation to ensure that consumers are well-informed. They also recommend that guidelines for disclosure focus on critical responses of consumers and media and message characteristics.

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