Sharp Practice in Merchandising and Advertising

Practices in merchandising and advertising should not be appraised merely in terms of traditional mores, ethical codes, and rules of conduct in the United States. Traditional ethical precepts must be interpreted also in relation to the re quirements of the "rule of competition," our announced na tional economic policy, which insists upon the independent, competitive offering of goods and services. Hence, acceptable business behavior is determined not only by community values, but also by the public regulations affecting competitive rela tions. Such regulations are becoming stricter for goods and services important to health and safety, but a large element of caveat emptor must remain in other situations under legally recognized "puffing" in advertising and selling. Existing fed eral, state, and local law regulations and agencies are entirely adequate for dealing with fraudulent and deceptive practices, given the will and resources for enforcement. It would be a mistake in judgment to try to establish "good taste" by legis lation. This aspect of community values must be expressed through a host of formal and informal voluntary programs and endeavors or through the public services. But choices between public and private offerings and voluntary, co-operative ar rangements, like choices under the competitive market system itself, should be among genuine, free alternatives.