Read the following article: On-campus Credit Card Advertising Hurts Students
Post your answers by Wednesday, March 11th at 12pm (noon).
1. The Better Business Bureau is an organization for the public that helps to regulate ethical business practices. In this case the BBB took the side of advertisers and placed the responsibility in the college students hands. Is it unethical for regulatory bodies such as the BBB, AAF or FTC to choose not to represent those asking for action (such as consumers), but to stand with the opposing party?
2. One concern was that students getting behind on payments results in a domino effect; late penalties result in a rate increase. We’ve discussed the ethics regarding “fine print”. Is it ethical for companies to utilize this tactic in regards to people’s finances? How does this tactic differ from misrepresentation in an ad?
3. Students said that they’ve been bombarded with credit card ads, incentives to sign up and given large credit limits. This has resulted in thousands in debt, losing track of payments and distraction from schoolwork. Do you believe that college students are in the category of “vulnerable audiences”? Why or why not? Should there be a band on campus advertising of credit cards, and would this be a viable solution to the problem?
1. It is very unethical to just say the students should chose to whether or not they have a credit card and that they should read the fine print. The student's wouldn't have such a dilemma if the campus would just put a ban on advertising credit cards to people who don't know any better and need the "money" here and now. the BBB and FTC has a right and obligation to protect those being affected by business practices and advertising that might hurt the consumer. this is a "choice" in the long run that the consumer has to be responsible for, yes, but when something like a credit card that can easily be added up in debt because the charges do not usually take effect immediately does leave a person confused, stressed, and frustrated with the bill they racked up without even knowing. It's not a matter of doing business, its more serious than that. what will they let slide by the radar next? sample pills that the consumer has the choice of taking or maybe an automatic license to have their information being used for memberships they don't even want to belong to.
ReplyDelete2. Fine print will always exist with all the legal jargon that exist with it. there is two parts in owning up to being responsible when it comes to any situation, including own a credit card. it is the consumers responsibility to research and ask questions, it is the responsibility of the business to let them know of the penalties, fees, limitation and the fine print. any business that doesn't explain itself is shady and only want your money.
Misrepresentation is being false on all account for displaying itself in an untruthful manner. if it does not do what it says it does or show what the end results will or might be, its misrepresenting itself. the main difference is the legal information. misrepresentation can be bent to be semi-legal if not just done on a total risk to try and make it and hope for the best in the advertising world. Companies that have a fine print MUST have it for legal purposes or they will be penalized and sued for leaving out important information.
3. college students do fall under the category of being vulnerable. College life is unknown, especially when the person is new, on their own, and learning things as they go. Credit Card companies take advantage of these people who don't know any better and who feel they can be independent and make the "easy" monthly payments because they have a job. Credit cards usually start out as an emergency access only or they create a "set limit" but don't know what that is after so many times using it and eventually that limit doesn't exist anymore. I should know, i was one of these people but i have set my limit, paid attention to what I used it for and always weigh my options in what I buy and what I need it for. Bills, Rent, Food, School related things ALWAYS come first before luxuries of life.
Cutting back on advertising on campus is a great idea because its not in front of them or a constant bombardment of having to sign up and be a part of the system and build "credit." however, there are other means to gain a credit card through just shopping. Victoria's Secret Angel card gives you points for everytime you shop etc. Express has one you can use, Target, Walmart etc. its not just advertising through college, its a constant advertisement when we shop and if there is a smooth talker. anything is possible.
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ReplyDelete1. regulatory agencies to have an obligation to stand for the public. They also have to weigh out both sided in order to decide weather or not to take action. In this case, if the BBB had decided not to help the student body than this did not need to be a public announcement that stated students responsibility. They could have quietly denied action and remained a representative exclusively for the consumer.
ReplyDeleteMarch 10, 2009 11:08 PM
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ReplyDelete2. This tactic does should not be utilized in regards to finances. This financial choices are so important. Not providing all information upfront, especially those regarding finance, is very unethical.
ReplyDeleteThis ad differs from misrepresentation in an ad because it is essentially hiding information from the consumer that will affect their decision to purchase. This can be even more damaging than misrepresentation in an ad. Misrepresentation would bring people into a store under false pretenses or disclude particular sale items. These consequences, though unethical, are less severe.
3. College students are in the category of voulnerable audiences as is anyone who can be mislead by advertising. they are uneducated on how to properly handle finances and are being presented with a choice that will affect their futures. Placing a band on advertising on campus would be a good solution. This would allow students to focus on school and not tempted with credit card offers.
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