1981
DOI: 10.2307/3114441
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From Competitor to Consumer: The Changing Focus of Federal Regulation of Advertising, 1914–1938

Abstract: It is a truism that government regulation of business, like all institutions of the political economy, has been evolutionary in nature. Yet few regulatory programs have metamorphosed quite so completely as that of the Federal Trade Commission, which converted itself in the period covered by this article from a watchdog of “competitive practices” that might militate against preservation of atomistic industrial organization, to an agency bent on protecting the interests of consumers. Professor Tedlow shows how t… Show more

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Cited by 23 publications
(12 citation statements)
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“…The FTC takes action Eight years after Congress enacted the Food and Drug Act it passed the Federal Trade Commission Act creating the FTC. The Commission immediately began pursuing false advertising as an unfair method of competition (Tedlow, 1981). In the mid-1920s, a series of far-fetched testimonial advertisements appeared for products as diverse as Pond's skin care products, Fleischmann's yeast, Simmons beds and Lucky Strike cigarettes.…”
Section: Truth-in-advertisingmentioning
confidence: 99%
See 1 more Smart Citation
“…The FTC takes action Eight years after Congress enacted the Food and Drug Act it passed the Federal Trade Commission Act creating the FTC. The Commission immediately began pursuing false advertising as an unfair method of competition (Tedlow, 1981). In the mid-1920s, a series of far-fetched testimonial advertisements appeared for products as diverse as Pond's skin care products, Fleischmann's yeast, Simmons beds and Lucky Strike cigarettes.…”
Section: Truth-in-advertisingmentioning
confidence: 99%
“…After heated debates about strengthening the Food and Drug Act to broadly define false advertising to include misleading impressions created by ambiguity or inference, Congress in 1938 augmented FTC authority to also pursue "unfair or deceptive acts and practices" that quickly became the FTC's primary authority against deceptive advertising (Stole, 2006;Washburn, 1981;Tedlow, 1981). It used this authority to prohibit implied fabricated endorsements such as "contractors all over the world would testify that maintenance cost of advertised machine 50 per cent lower than any other," "Howe's Hollywood, favorite of the stars" and a home study course offered by an From puffery to penalties JHRM 5,1 organization called the "Weavers Guild of America" that was a for-profit firm rather than a non-profit guild representing weavers (Moretrench Corp. v. FTC, 1942;Howe v. Federal Trade Commission, 1945;Goodman v. Federal Trade Commission, 1957).…”
Section: Truth-in-advertisingmentioning
confidence: 99%
“…That is where the real damage is done" (Young, 1967, p. 55). The Federal Trade Commission (FK) Act of 1914 sought to outlaw "unfair methods of competition," and advertising was scarcely mentioned in hearings and debates on the measure (Tedlow, 1981, pp. 39-41; Miracle & Nevett, 1987, p. 15).…”
Section: The Progressive Era and The Truth In Advertising Movementmentioning
confidence: 99%
“…Coming to the "rescue" when consumers were selecting new products and packaged varieties of old staples was the newly created advertising industry, which urged people to rely upon brand names. This form of consumer communication was wrought with problems-there was a pronounced tendency for the "information" in the ads to be of marginal value, or even counterproductive-and resulted in a struggle over advertising regulation that eventually led to the passage of the 1938 Wheeler-Lea Amendment, a story that has received a fair amount of scholarly attention (Pease 1958;Stole 2006;Tedlow 1981;Young 1992). Advisory Board, Roosevelt was advised by a Consumers' Advisory Board (CAB), whose mandate was to look out for consumers' interests (Campbell 1940, chap.…”
mentioning
confidence: 99%