Ethical Labeling Standards: How much information should be there on a label?

In United States, as more and more consumers have become more educated, aware and conscious about social, health and environmental implications of their consumption habits, they demand to know more about the products – including their content, where and how they were made and their implications. And the firms and industries must match up the supply with the demand in order to maintain the markets.

For example, the labeling standards for the cigarettes industry has transformed from making the cigarettes packaging to include a warning message necessary (such as “Smoking causes lung cancer, heart disease, emphysema, and may complicate pregnancy”) in 1960s to requiring more graphic warning labels that feature color images of the negative effects of tobacco use in 2009.

The main question that the customers should ask is

“Would we change our purchasing habits if such information is available?”

Apparently we would and do in the cigarettes case. Hence, its labeling practice is indeed appropriate and necessary although the tobacco companies are now pulling back, arguing that “the proposed warnings went beyond the factual information into anti-smoking advocacy.”

Then it is important to ask how much information should really be there on a label? 

The food industry is an interesting case of a labeling/information “miss,” although Fair Packaging and Labeling Act (1966) requires manufacturers to state the content of the package. For example, many traditional canned refried beans are made with hydrogenated lard, or pig fat. Also, some of the baked products such as bagels and breads are made with the amino acid L-cysteine, which comes from human/hog hair and poultry feathers. Such information matters for vegetarians: some may not know about them.

Again, how much information should really be there on a label?

How do we draw the line? Can we push it (as the industry/firms pull it)?

Sources: 1) http://www.enotes.com/topics/federal-cigarette-labeling-advertising-act-1965

2) http://www.usatoday.com/story/news/nation/2013/03/19/cigarette-warning-labels/2000549/

3) http://www.huffingtonpost.com/2013/09/20/non-vegetarian-ingredients-foods_n_3942454.html?ir=Canada#slide=967552

Celebrities in the Commercials

In marketing and advertising, celebrities play a powerful role in creating and enhancing value(s) to the products. Which celebrity appears in which product commercial tells a lot about which market segment, or focus audience, it is targeting towards.

For example, One Direction and Drew Brees have appeared in a Pepsi commercial, drawing both young female fans and American-football-loving males into liking Pepsi.

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H&M also gets David Backham in its commercial (and also a famous director, Guy Ritchie – Madonna’s ex-husband – to direct). The target audience is most likely to be those in 20s, 30s and perhaps even teens. Most probable is that the majority of them are females.

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There actually are (less costly and yet effective) alternatives to using the celebrities in the commercial. For example, getting unknown amateur actors or those in one’s social circle to act, using some drawings OR just doing a commercial simply focusing on the product’s features. Many commercials do take on these alternatives, save a lot of advertising cost and are successful in garnering attention and gaining popularity with the audience.

And yet, many products companies are very eager in getting celebrities to endorse, promote and advertise their products. Why? 

Primarily, they want to easily capture a great number of followers, fans, of particular celebrities as their target market, assuming that the loyalty to the celebrities extends to an automatic loyalty to the product brand, and thereby gaining some market advantage over their competitors.

Hence, David Beckham keeps appearing in many commercials, “banking $42 million from commercial endorsements from sponsors.” Source: http://www.forbes.com/profile/david-beckham/

So who else is after Beckham. Samsung!

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While Samsung seems to gear Beckham commercial more towards the global market, it also has another commercial with the korean celebrities, aiming mainly for the korean youth market and also perhaps the Asian youth market.

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