Unseen but Effective Advertising Regulation: The Clearance Process

Abstract

An increase in regulatory activity regarding false and deceptive advertising during the late 1960s and throughout the 1970s instigated an increase in the number of articles on the subject in both the academic and trade journals. Most of the developing literature centered on post hoc regulation done by formal government agencies (such as the FTC) and informal self-regulatory agencies (such as NAD/NARB). Largely overlooked was the routine but important advertising clearance process that addresses matters of falseness, deception and taste before the advertisements appear in the media. Recent trends toward de-regulation make the clearance process more important than ever before. This article focuses on widely followed clearance procedures prevalent among major advertisers who use agencies and national media. A case example is included to show nuances and intricacies of the process. Common exceptions to the example are noted. Figures are included to model the general process and primary concerns of the involved parties.