Advertising Principles - Evidence-based principles

Do mandatory disclosures help consumers? (Principle 7.13.1)

Advertisers often use disclosures because they are beneficial for their customers and themselves. Interestingly, then, a review of evidence on government-mandated disclosures found harmful effects. Such disclosures may not seem contentious as they simply provide more information to those who might find it useful. However, Ben-Shahar and Schneider (2011) found that mandatory disclosures were expensive and confusing, and they were unable to find experimental evidence on any mandatory disclosures for which the benefits outweighed the costs. More …

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