By: Jacob Osborn

False advertising in the video game industry is a rising problem. Over the last several years, misleading statements and blatantly false ads have taken the market by storm, but despite their global rise, only a handful of cases have been brought against regulating bodies like the United States’ FTC and United Kingdom’s ASA. Governments need to crack down hard on these fake ads just like they do with other false advertisements, or consumers will be harmed. The FTC, ASA, and other regulating bodies have ruled in favor of stopping these lies in the past, but they have not followed up on their decisions.
Government bodies regulate much of what modern businesses do, and being in compliance with those regulations can carry heavy penalties. This paper puts forth the idea that currently existing compliance program requirements should be bulked up to include a marketing aspect, requiring companies, particularly video game companies, to make sure every ad they create is not materially misleading, omitting material information, or failing to state significant limitations.

 

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