Structural Characteristics of Televised Advertising Disclosures: A Comparison with the FTC Clear and Conspicuous Standard

Abstract
Interest in information disclosure is increasing as the marketplace awaits the impact of prescription drugs gaining over-the-counter status, the FDA crackdown on health-related claims for food and cosmetics, and the attempt of advertisers to protect themselves against allegations of misleading advertising. This study examines the structural features of disclosures in prime time television advertising with respect to the FTC “clear and conspicuous standard” recommendations established in 1979. None of the disclosures studied was found to meet all six of the clear and conspicuous standards that were investigated. Only 12 percent of video disclosures met all video-related criteria. The findings suggest that advertisers attempt to circumvent the FTC's intentions to provide “clear and conspicuous” consumer information by limiting their efforts to protecting themselves against misleading advertising claims.