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64 S. Cal. L. Rev. 549 (1990-1991)
Regulating Deceptive Advertising: The Role of Cost-Benefit Analysis

handle is hein.journals/scal64 and id is 563 raw text is: ARTICLES REGULATING DECEPTIVE ADVERTISING: THE ROLE OF COST-BENEFIT ANALYSIS RICHARD CRASWELL TABLE OF CONTENTS I. COST-BENEFIT ANALYSIS AND INTERPRETATION .......................................................... 551 A. APPLYING THE COST-BENEFIT ANALYSIS ............. 552 B. COST-BENEFIT ANALYSIS UNDER CURRENT LAW ..... 555 II. ARE THE COSTS OF REDUCING DECEPTION SIGNIFICANT?. ......................................... 562 A. THE PRESTON AND RICHARDS STUDY ................ 562 1. The Validity of the Study .......................... 563 2. The Implications for Current Law ................. 565 3. The Cost of Reducing Deceptiveness ................ 567 B. THE SCHECHTER ANALYSIS .......................... 572 III. OTHER OBJECTIONS TO COST-BENEFIT ANALYSIS .......................................................... 577 A. INTERPRETATIONS VS. BELIEFS ....................... 578 1. Predictability and Notice to Advertisers ............. 578 2. Causal Responsibility .............................. 581 3. False but Unbelieved Claims ....................... 583 B. LONG-TERM OR SYSTEMIC EFFECTS .................. 584 1. Consumer Confidence and Deterrence Goals ........ 585 2. Noninstrumental Ethical Objections ................ 587 3. The Norm Against Deception ...................... 589 C. THE ALTERNATIVE PROPOSED BY SCHECHTER ........ 595 1. Cost-Benefit Analysis in Designing the Standard .... 596 2. Wholesale vs. Retail Cost-Benefit Analysis .......... 599 IV. CONCLUSION: TWO MODEST PROPOSALS .......... 602