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Did the Federal Trade Commission's Advertising Substantiation Program Promote More Credible Advertising?

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Author Info

  • Sauer, Raymond D
  • Leffler, Keith B

Abstract

This paper examines the effects of the Federal Trade Commission's Advertising Substantiation Program, developed in the early 1970s. This program coupled changes in the legal definition of deception with more vigorous FTC enforcement. The authors analyze changes in advertising intensity, media choice, media wealth, and the progress of new entrants. The evidence suggests that adoption of substantiation requirements increased the credibility of advertising. Copyright 1990 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 80 (1990)
Issue (Month): 1 (March)
Pages: 191-203

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Handle: RePEc:aea:aecrev:v:80:y:1990:i:1:p:191-203

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Cited by:
  1. Jonathan Zinman & Eric Zitzewitz, 2012. "Wintertime for Deceptive Advertising?," NBER Working Papers 17829, National Bureau of Economic Research, Inc.
  2. Edward L. Glaeser & Gergely Ujhelyi, 2006. "Regulating Misinformation," NBER Working Papers 12784, National Bureau of Economic Research, Inc.
  3. Giovanni Ursino & Salvatore Piccolo & Piero Tedeschi, 2013. "Deceptive Advertising with Rational Buyers," CSEF Working Papers 348, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  4. Thomas Mayer, 2012. "Ziliak and McClosky’s Criticisms of Significance Tests: A Damage Assessment," Working Papers 126, University of California, Davis, Department of Economics.
  5. Umit G. Gurun & Gregor Matvos & Amit Seru, 2013. "Advertising Expensive Mortgages," NBER Working Papers 18910, National Bureau of Economic Research, Inc.
  6. Thomas Mayer, 2012. "Ziliak and McCloskey's Criticisms of Significance Tests: An Assessment," Econ Journal Watch, Econ Journal Watch, vol. 9(3), pages 256-297, September.

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