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22 J. L. Bus. & Ethics 9 (2016)
The Advertising Industry in the Social Media Age: The Ethical and Legal Implications of Unsanctioned Rogue or Scam Ads

handle is hein.journals/jourlbun22 and id is 19 raw text is: THE ADVERTISING INDUSTRY IN THE SOCIAL MEDIA AGE: THE ETHICAL AND LEGAL IMPLICATIONS OF UNSANCTIONED ROGUE OR SCAM ADS Susan A. O'Sullivan-Gavin Michelle A. Amazeen KEY WORDS: advertising, advertising agencies, advertising industry, agencies, awards, award organizations, creatives, ethics, ethical principles, Ford Figo, unsanctioned ads, scam ads, spec creative, ghost ads, fake ads, chip-shop ads, rogue ads, social media, technology. ABSTRACT The rise of social media and the impact of the digital evolution on business are attracting global attention to a previously little known practice in advertising: rogue or scam ads. Rogue ads are typically unapproved, limited placement, or limited run ads. The majority of rogue ads are highly offensive, culturally insensitive, discriminatory and/or inflammatory. Advertising professionals create rogue ads after misappropriating client brands and intellectual property, in hope of individual recognition at industry award competitions. Several U.S. companies, including Hanesbrands, Inc., Unilever and Yum Brands' Pizza Hut, have been victims of rogue ads. The 2013 Ford Figo ad scandal, and the increase in award competitions for rogue ads, such as the Chip Shop Awards, signals a continued industry acceptance of the practice of rogue ad creation. This paper examines different types of rogue ads, focusing on recent examples of unapproved ads. Current conflicting attitudes reveal an ethical divide in the industry: some advertising professionals condone the practice as harmless or proactive creativity, while others condemn the practice as damaging to the profession, agencies, award organizations and clients. Legal, ethical, and social issues, raised relative to contracts, intellectual property, reputational damages, corporate social responsibility, industry self-regulation, and misappropriation/theft, are identified and discussed. Recommendations include calls for: industry associations and agencies to condemn rogue ads by updating principles/standards of practice; award organizations to strengthen submission policies; ad agencies to strengthen corporate governance procedures with top * J.D., Seton Hall University School of Law. Associate Professor of Legal Studies in the Department of Marketing, Advertising and Legal Studies at Rider University, Lawrenceville, New Jersey. Ph.D., Temple University. Assistant Professor of Advertising in the Department of Marketing, Advertising and Legal Studies at Rider University, Lawrenceville, New Jersey. 9 22 JL. Bus. & ETHICS 9(2016)