Professional Documents
Culture Documents
F:
E
I
R
B
E
U
ISS In
Reining Power
Pester d Beverage
Food an ing
Market
PHAI
Introduction
PHAI
Happy
Meal
Type
Food &
Condiment
Cost
Retail
Happy
Meal
Price
Hamburger
33
47
$1.99
Cheeseburger
37
47
$2.39
Chicken McNuggets
46
48
$2.69
PHAI
PARENTS
Purchase Product
CHILDREN & TEENS
Consume Product
Indirect Advertising
Many states include indirect attempts to induce consumers to purchase products in statutory definitions of
advertising. For example, Arizona defines advertising to
include attempts to induce directly or indirectly any person to enter into any obligation or acquire any title or
interest in any merchandise.24 Indirect attempts to
induce a purchase may also appear in statutory definitions
of trade practices. Arguably, even state consumer protection statutes that do not expressly reference indirect
trade practices are to be broadly construed to capture the
widest range of trade practices harmful to consumers.
Courts in New Jersey and Minnesota interpreted indirect
advertising under their state consumer protection laws to
include medical device maker marketing of products to
physicians as an indirect advertisement to the public.25
The cases analyzed indirect marketing of IUDs (a medical
device used for contraception) to physicians who, in turn,
prescribed the devices to patients and eventually
injured the patients. A New Jersey court found that that
the provision of an IUD to a gynecologist essentially
constitutes, at the very least, an indirect attempt to sell the
IUD to a wanting patient with the concomitant expectation
of monetary return.26 A Minnesota court found that such
medical device advertising to a physician is an indirect
advertisement to the public as contemplated by Minn.
Stat. 325F.67.27
In these cases, the defendant sought to increase sales by
enlisting a third party (the doctor) who was in the position
to exert influence over a prospective consumer (the
patient). While doctors as experts exert a very powerful
influence over patients, the same basic logic holds true
with marketing to children to produce pester power.
Instead of marketing directly to parents, the food marketer
directs the advertising to children in order to influence
parents as the ultimate purchasers.
PHAI
Missouri
Iowa
Georgia
Idaho
Kentucky
Louisiana
Montana
South Carolina
South Dakota
Nevada
Washington
Oregon
Wyoming30
(3) whether it causes substantial injury to consumers (or competitors or other businessmen).32
PHAI
An injury alleged by consumers in a lawsuit based on unfairness must be substantial; it must not be outweighed
by a countervailing benefit to consumers or competitors
that the practice produces; and it must be an injury that
consumers themselves could not reasonably have
avoided.47 When analyzed as unfair indirect advertising to
adult parents, the substantial injury caused by pester
power marketing of unhealthy foods for children encompasses the economic harm to adults who, faced with relentless requests from their children and fear of
embarrassment in public places, purchase products that
they would not otherwise purchase for their children, and
the potential health harm to their children associated with
unhealthy food.
PHAI
PHAI
Conclusion
Visit http://phaionline.org/cpmap.htm
for a map of state consumer protection law profiles.
PHAI
at Northeastern University
School of Law
102 The Fenway
Cushing Hall, Ste. 117
Boston, MA 02115
Contact Us!
Phone: 617-373-2026
E-mail: cp@phaionline.org
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ENDNOTES
JULIET B. SCHOR, BORN TO BUY: THE COMMERCIALIZED CHILD & THE NEW
CONSUMER CULTURE 23 (2004).
2
Jeff Chester & Kathryn Montgomery, Interactive Food & Beverage
Marketing: Targeting Children and Youth in the Digital Age 17 (May
2007), http://digitalads.org/documents/digiMarketingFull.pdf (internal
citations omitted).
3
Mary Story & Simone French, 1 Food Advertising and Marketing
Directed at Children and Adolescents in the US, INT. J. BEHAV. NUTR.
PHYS. ACT 3 (2004), available at http://www.ijbnpa.org/content/pdf/14795868-1-3.pdf.
4
FEDERAL TRADE COMMISSION, MARKETING FOOD TO CHILDREN AND
ADOLESCENTS: A REVIEW OF INDUSTRY ACTIVITIES, EXPENDITURES, AND
SELF-REGULATION 5 (2008),
http://www.ftc.gov/os/2008/07/P064504foodmktingreport.pdf.
5
Id. at 54.
6
See Story & French, supra note 3, at 10 (noting that [a]lmost all of the
studies on the impact of food advertising on childrens food preferences
and behaviors were conducted in the mid-1970s and the 1980s.).
7
Dale Kunkel, Children and Television Advertising in HANDBOOK OF
CHILDREN AND THE MEDIA 375-93, 383 (Dorothy Singer & Gerome Singer,
eds., 2001).
8
Story & French, supra note 3, at 11.
9
Kunkel, supra note 7, at 383.
10
Story & French, supra note 3, at 3.
11
Kunkel, supra note 7, at 383.
12
FEDERAL TRADE COMMISSION, supra note 4, at 55.
13
In re E-M Food Corp. T/A McDonalds Restaurant, 1993 WL 98470, at
*3 (N.Y.Div.Tax.App., March 18 1993).
14
See McDonalds Restaurants of Massachusetts, Inc. v. Commissioner
of Revenue, Docket No. C262528, at 192-193 (Mass. App. Tax Bd., April
22, 2005).
15
Id. at 195-197 (Table reflects Happy Meals offered during time relevant
to the Boards decision. Menu items and prices may have changed.).
16
Center for Science in the Public Interest, Class Action Lawsuit Targets
McDonalds Use of Toys to Market to Children, Dec. 15, 2010,
http://www.cspinet.org/new/201012151.html.
17
FEDERAL TRADE COMMISSION, supra note 4, at 54-55.
18
Id. at 55.
19
Id. at 90 n. 84.
20
Story & French, supra note 3, at 14.
21
See DEE PRIDGEN, CONSUMER PROTECTION AND THE LAW 2:10 (2003).
22
See FEDERAL TRADE COMMISSION, DECEPTION POLICY STATEMENT,
appended to In re Cliffdale Assocs., Inc., 103 F.T.C. 110, 177 (1984),
available at http://www.ftc.gov/bcp/policystmt/ad-decept.htm (stating we
examine the practice from the perspective of a consumer acting
reasonably in the circumstances.)
23
Id.; see also Lavie v. Procter & Gamble Co., 105 Cal. App. 4th 496
(Cal. Ct. App. 2003) (cert. denied 2003 Cal. LEXIS 4724 (Cal. 2003));
Committee on Childrens Television, Inc. v. General Foods Corp., 35 Cal.
3d 197 (Cal. 1983).
24
Ariz. Rev. Stat. 44-1521.
25
See Jones v. Sportelli, 166 N.J. Super. 383 (Law Div. 1979); Kociemba
v. G.D. Searle & Co., 680 F. Supp. 1293 (D. Minn. 1988).
26
Jones, 166 N.J. Super. at 390.
1