Technological advancements have significantly impacted the broadcasting and advertising industries. The current broadcasting industry utilizes various media, not only TV and radio which were developed along with radio technology, but also two-way serv...
Technological advancements have significantly impacted the broadcasting and advertising industries. The current broadcasting industry utilizes various media, not only TV and radio which were developed along with radio technology, but also two-way services such as cable TV, IPTV, satellite broadcasting, and OTT using smartphones. The infrastructure is well established and allows entry into the broadcasting market even for companies without large amounts of capital. Yet, with the advent of the industrial revolution, mass production and distribution of products became possible, and advertising, which dynamically developed alongside it, brought about not only the positive function of promoting company sales but also the dysfunctional aspect of consumer harm due to false and exaggerated advertising claims in the overheated competition process. In response to this, advertising regulations were implemented to ensure that advertisements perform their intended function in society.
The initial regulation of advertising was conducted to establish a fair competitive order among companies. Strict regulations, especially for broadcast advertising, which emphasized objectivity and fair trade, were recognized as legitimate and necessary. As cases of consumer harm have increased and the scale of losses has grown, the perspective of advertising regulation has gradually shifted towards consumer protection. For instance, in the United States, to complement antitrust laws, the Wheeler-Lea Act was enacted, which includes deceptive acts or practices as prohibited acts; thus, expanding the authority of the Federal Trade Commission to regulate advertising for consumer protection. Additionally, in Japan, the jurisdictional authority of the Advertising Regulation Corporation, established under the Prize Labelling Act, was transferred to the Consumer Agency. In the Korean domestic context, changing advertising regulation from the existing antitrust laws to the Labelling Advertising Act is an example of this trend. While it is essential to avoid advertising regulation focused solely on consumer protection, it is equally important that regulations consider both maintaining proper economic order and consumer protection.
While the need for advertising regulation is undeniable, it is crucial to move away from perceiving the advertising industry as a fundamentally regulated industry. Although there are dysfunctions associated with advertising, in reality, no industry exists without some dysfunctions. Approaching advertising regulation carefully and considering the industry's development, it is important to relax regulations that are not practical or that hinder the advertising industry’s progress. Both the direction and speed of relaxation are critical. Currently, individual laws regulate advertising for each mediatype. To ensure regulation consistency, it is necessary to establish comprehensive advertising legislation. Shifting from a positive regulation approach to a negative regulatory approach is also essential. Excessive regulation that overly constrains the advertising industry and related sectors must be relaxed. Consideration should be given to allowing TV advertising for medical professionals and healthcare institutions to deliver accurate information to consumers. Yet, in contrast, issues such as alcohol consumption, which persistently pose societal problems and are related to public health, should be rigorously managed not only in broadcast advertising but also in other media advertising. Appropriate regulation enables advertising to perform its functions properly. Regarding the Broadcast Advertising Combined Sales System, a representative form of asymmetric regulation, it should be promptly revised along with the provision of support measures for local network terrestrial broadcasters and small local terrestrial broadcasters, considering the existing legal and policy issues.
In the multimedia age, the need for appropriate advertising regulation to ensure that advertising performs its proper functions is undeniable. However, considering broadcast advertising’s continuously decreasing expenditures, there is an ongoing need for serious deliberation and legislative discussions regarding broadcast advertising regulations.