NAB reports (Jan-Dec 1941)

Record Details:

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in 1934. As expanded in 1939, this survey includes mail-order catalogs and domestic newspapers published in foreign languages. .4pparent and probable misrepresentations detected through this survey are carefully investigated, and where it appears from the facts developed that the advertising is false or misleading and circumstances warrant, the advertisers arc extended the privilege of disposing of the matters through an informal lu'ocedure, more fully explained at page 123, which permits their executing stipula¬ tions in which they agree to cease and desist from the use of the acts and [iractices involved. A large majority of the cases are adjusted in this manner. In those cases where this informal procedure is not applicable or does not result in the elimination of the misleading claims, and the facts so warrant, formal proce¬ dure is instituted. In cases of advertising involving food, drugs, devices, and cos¬ metics, the Commission has directed the negotiation of stipulations with the advertising agencies which have disseminated those advertisements as well as with the advertisers in whose behalf the agencies acted. In its examination of advertising, the Commission s only pur¬ pose is to prevent false and misleading advertisements. It does not undertake to dictate what an advertiser shall say, but rathei indicates what he may not say under the law. Commission believes that its work in this lield contributes suljstantially to the improvement that has been evident in recent years in the character of all advertising. \’ew^paper and magazine advertising.— In examining advertise¬ ments in current publications, it has been found advrsable to call for some newspapers and magazines on a continuous^ basis, flue to the persistently questionable character of the adyertisements pub¬ lished. However, as to publications generally, of which there are some 20,000, it is physically impossible to survey continuously all aflvertisements of a doubtful nature ; also, it has been found un¬ necessary to examine all the issues of publications of recognized high ethical standard whose publishers carefully censor all copy before acceptance. Generally, copies of current magazines and newspapers are pro¬ cured on a staggered monthly basis, at an average rate of three times yearly for each publication, the frequency of the calls for each publication depending upon its circulation and the character of its advertisements. Throun-h such systematic calls for magazines and newspapers during the fiscal year ended June 30. 1940. the Commission procured” 1,631 editions of representative newspapers of established general circulation and 1.339 editions of magazines and farm Journals of interstate distribution representing a combined cir¬ culation of 122,995,074. .-Xmong these periodicals were included representative foreign-language publications having a combined circulation of 1,417,587 copies. The Commission examined 300.741 advertisements appearing in the aforementioned newspapers and magazines and noted 24.104 as containing representations that appeared to be false or mis¬ leading. The 24,104 questioned advertisements provided current specirnens for check with existing advertising cases as to their compliance wtih orders of the Commission and stipulations ac¬ cepted from adx'crtisers, and also formed the bases of prospective rases not previously set aside for investigation. Almanac advertising. — .As an important supplement to its review of periodical advertising, the Commission examines almanacs of wide distribution which are used as advertising media for dis¬ tributors of drugs, devices, and other commodities sold for the treatment of various ailments. Mail-order advertising.— \r\ January 1939, the Commission ex¬ tended its examination of current published advertisements to in¬ clude a continuous systematic survey of arlvertising matter ap]iearing in mail-order catalogs and circulars. During the fiscal year ended June 30. 1940, the Commission procured mail-order catalogs and circulars containing an aggregate of 15,314 pages, being distributed periodically by mail-order companies. Of the 56 mail-order houses included in this survey. 5 represent combined annual net sales in excess of .11996,000.000 worth of merchandise. In the subsequent examination of 15,208 pages of the mail-order advertising, 441 i)agcs have been marked by the preliminary re¬ viewing staff as containing possibly false, misleading, and decep¬ tive material, and have been set aside for investigation. A wide variety of commodities (including food, drugs, devices, and cos¬ metics) is included in this questioned advertising. Radio advertising. — The Commission, in its systematic review of advertising copy broadcast over the radio, issues calls to indi¬ vidual radio stations, generally at the rate of four times yearly for each station. However, the frequency of calls to such indi\irlual broadcasters is varied from time to time, dependent prin¬ cipally upon transmittal power, the service radius or area of specific stations, and the advertising record of certain types of stations, as disclosed in analyses of previous advertising reviews. National and regional networks respond on a continuous weekly basis, submitting copies of commercial continuities for all pro¬ grams wherein linked hook-ups are used involving two or more affiliated or member stations. Producers of electrical transcription recordings submit monthly returns of typed copies of the commercial portions of all record¬ ings produced by them for radio broadcast. This material is supplemented by periodic reports from individual stations listing the programs of recorded commercial transcriptions and other essential data. During the fiscal year ended June 30, 1940, the Commission re¬ ceived 759,595 copies of commercial radio broadcast continuities, amounting to 1,518,237 pages of typewritten script. These com¬ prised 1,072,537 pages of individual station script and 445,700 pages of network script. The staff read and marked 684,911 commercial radio broadcast continuities, amounting to 1,398,561 pages of typewritten script. These comprised 436,700 pages of network script and 961.861 pages of individual station script. An average of 4,570 pages of radio script were read each working day. From this material 22,556 commercial broadcasts were marked for further study as containing representations that might be false or misleading. The 22,556 questioned commercial continuities provided current speci¬ mens for check with existing advertising cases as to their com¬ pliance with orders of the Commission and stipulations accepted from advertisers, in addition to forming the bases for prospective cases which may not previously have been set aside for investiga¬ tion. Cooperation of radio and publishing industries. — In general, the Commission has received the helpful cooperation of nation-wide and regional networks and transcription producers, in addition to that of some 717 active commercial radio stations, 468 newspaper publishers, and 540 publishers of magazines and journals, and has observed an interested desire on the part of such broadcasters and publishers to aid in the elimination of false, misleading and deceptive advertising. Source of radio and periodiced cases. — Examination of current newspaper, magazine, radio, and direct mail-order house adver¬ tising, in the manner described, has provided the basis of 79 percent of the radio and periodical advertising cases handled by the Commission during the fiscal year ended June 30, 1940. Information received from other sources including information from other divisions of the Commission, and from other Govern¬ ment agencies, formed the basis of the remainder of this work. Analysis of questioned advertising. — An analysis of the ques¬ tioned advertising which was assembled by cases and given legal review discloses that it pertained to the following classification of 3.014 commodities in the proportions indicated: Classification of Products Commodity Food, drugs, devices, and cosmetics: Percent Fond 11.2 Drugs . 33.4 Cosmetics . 12.8 Devices . 2 .3 59.7 Other products: Specialty and novelty goods . 11.2 .Automobile, radio, refrigerator, and other equip¬ ment lines . 4.9 Home study courses . 2.8 Tobacco products . 12 Ga.solinc and lubricants . 16 Poultry and livestock supplies and equipment, in¬ cluding hatchery products, etc . 2.0 Miscellaneous, including apparel, coal and oil fuels, house furnishings and kitchen supplies, specialty building materials, etc . 16.6 40.3 Total . 100.0 In the item of drug preparations listed above, a substantial pro¬ portion of the related advertising contained positive misrepresenta¬ tions or representations which encompassed possible injurious results to the public and for that reason were given preferred attention. 12 — January 3, 1941