(A code adopted by the American Association of Advertising Agencies in 1924 and revised in 1962).
WE HOLD THAT a responsibility of advertising agencies is to be a constructive force in business.
WE FURTHER HOLD THAT, to discharge this responsibility, advertising agencies must recognize an obligation, not only to their clients, but to the public, the media they employ and to each other.
WE FINALLY HOLD that the responsibility will best be discharged if all agencies observe a common set of standards of practice.
To this end, the American Association of Advertising Agencies has adopted the following Standards of Practice as being in the best interests of the public, the advertisers, the media owners and the agencies themselves.
These standards are voluntary. They are intended to serve as a guide to the kind of agency conduct which experience has shown to be wise, foresighted and constructive.
It is recognized that advertising is a business and as such must operate within the framework of competition. It is further recognized that keen and vigorous competition, honestly conducted, is necessary to the growth and health of American business generally, of which advertising is a part.
However, unfair competitive practices in the advertising agency business lead to financial waste, dilution of service, diversion of manpower and loss of prestige. Unfair practices tend to weaken public confidence both in advertisements and in the institution of advertising.
We the members of the American Association of Advertising Agencies, in addition to supporting and obeying the laws and legal regulations pertaining to advertising, undertake to extend and broaden the application of high ethical standards. Specifically, we will not knowingly produce advertising which contains:
a. False or misleading statements or exaggerations, visual or verbal.
b. Testimonials which do not reflect the real choice of a competent witness.
c. Price claims which are misleading.
d. Comparisons which unfairly disparage a competitive product or service.
e. Claims insufficiently supported, or which distort the true meaning of practicable application of statements made by professional or scientific authority.
f. Statements, suggestions or pictures offensive to public decency.
We recognize that there are areas which are subject to honestly different interpretations and judgment. Taste is subjective and may even vary from time to time as well as from individual to individual. Frequency of seeing or hearing advertising messages will necessarily vary greatly from person to person.
However, we agree not to recommend to an advertiser and to discourage the use of advertising which is in poor or questionable taste or which is deliberately irritating through content, presentation or excessive repetition.
Clear and willful violations of this Code shall be referred to the Board of Directors of the American Association of Advertising Agencies for appropriate action, including possible annulment of membership as provided by Article IV, Section 5, of the Constitution and By ¬Laws.
a. The advertising agency should where feasible enter into written contracts with media in placing advertising. When entered into, the agency should conform to its agreements with media. Failure to do so may result in loss of standing or litigation, either on the contract or for violations of the Clayton or Federal Trade Commission Acts.
b. The advertising agency should not knowingly fail to fulfill all lawful contractual commitments with media.
Offering Credit Extension
It is unsound and uneconomic to offer extension of credit or banking service as an inducement in solicitation.
The advertising agency should compete on merit and not by depreciating a competitor or his work directly or inferentially or by circulating harmful rumors about him, or by making unwarranted claims of scientific skill in judging or prejudging advertising copy, or by seeking to obtain an account by hiring a key employee away from the agency in charge in violation of the agency's employment agreements.
These Standards of Practice of the American Association of Advertising Agencies come from the belief that sound practice is good business. Confidence and respect are indispensable to success in a business embracing the many intangibles of agency service and involving relationships so dependent upon good faith. These standards are based on a broad experience of what has been found to be the best advertising practice.