Wednesday, September 28, 2011

Ad News 10/04/11













Advertising Goals and Objectives:

Article: http://adage.com/article/news/ftc-calls-butt-shaping-shoes-bogus-reebok-stands-claims/230082/

Applying for a refund: http://www.ftc.gov/bcp/cases/reebok/index.shtm

When running an advertisement, a firm should establish what desired message that it wants to get across to the consumer. Many companies want their products to spark a positive emotion in their consumer’s heads; this can occur when trying to acquire new customers or when offering a new product to existing customers. Sometimes, consumers are dissatisfied with products and it is the companies’ decision to directly restore negative feelings or not. Recently The Federal Trade Commission announced that Reebok will pay $25 million dollars for “deceptively” advertising its EasyTone shoes that came out in 2009. The money that Reebok pays will be put into a fund and then be given directly back to consumers who purchased the shoes. Overall, Reebok claims that it did not falsely advertise but they are settling nonetheless. According to the article, Reebok’s EasyTone products were supposed to increase butt strength by 28% and hamstring strength by 11%. Because these claims were not backed up by scientific evidence, the FTC will be keeping its eye on Reebok’s product claims in the future, too.

1) Do you think that it was a good idea for Reebok to settle by paying customers back or should they have fought against the FTC’S claims? Why?

2) If you were buying toning shoes, would you be concerned with an advertisement's and/or packaging claims about increasing strength? Why or why not?

3) Do you think that other shoe companies, like Sketchers, will be more careful about their fitness claims because Reebok was sued? Why or why not?

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