Higg Index

Will shoppers pay more for products that are marketed as sustainable, or manufactured in ways that are aligned with certain labor and social measurements?
Recently, major clothing manufacturers have suffered considerable negative media exposure associated with sourcing. In 2013, after the deadly collapse of a garment factory in Bangladesh, it was discovered that Wal-Mart had subcontracted there; Gap and Target had subcontracted at another Bangladesh factory where a fire killed 112 workers in late 2012. These firms, along with other big name companies, have formed the Sustainable Apparel Coalition and have been testing the Higg Index a standard for measuring labor and social factors in overseas manufacturing, to be made public in late 2013. The goal is to provide information for shoppers, on labels, Web site, and apps, assuring them that the clothing they are buying was made in a humane way.
1. Would you pay more for a t-shirt that was marketed with this kind of assurance?
2. Research: Find out which retailers have signed up for the Higg Index.
3. Has it made a difference to customers?

Marketing: Technology, Choice & Manipulation

This week focuses on Marketing and Technology. We will look at the protection to advertising or "commercial speech". We will read and discuss about consumer demands. In addition we will explore Federal Agencies and Acts that protect consumers and competition. And we will specifically analyze marketing to children. You also have reading in your text, pages 248-285. I am looking forward to reading your reflective journals.
At the end of this module you will be able to:
• Explain an advertiser’s right to free "commercial speech" and any constitutional protections available to advertisers.
• Identify consumer demand and describe whether it is created and sustained by the advertising industry or whether consumer demand is already present waiting to be educated by the advertisers.
• Define legislation put in place to prevent deception in advertising, particularly the Federal Trade Commission and Lantham Acts.
Read: Text 283-317
The reading this week focuses on circulation of information and individual choice.
Does the First Amendment protect advertisements? Advertising is indeed protected by the First Amendment of the U.S. Constitution. However, advertising or "commercial speech" enjoys somewhat less First Amendment protection from governmental encroachment than other types of speech. The Federal Trade Commission (FTC), for example, may regulate speech that is found to be "deceptive." And the FTC keeps stepping up the types of commercial speech it regulates.
Under the landmark U.S. Supreme Court decision, Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, No. 79-565, Supreme Court of the United States, 447 U.S. 557; 100 S. Ct. 2343; 1980 U.S. LEXIS 48; 65 L. Ed. 2d 341; 6 Media L. Rep. 1497; 34 P.U.R.4th 178, June 20, 1980, a state must justify restrictions on truthful, nonmisleading commercial speech by demonstrating that its actions "directly advance" a substantial state interest and are no more extensive than necessary to serve that interest. This is the so-called Central Hudson Test.
Commercial speech now clearly has prominent place in the rights protected by the First Amendment. A 1993 Supreme Court opinion summarized the general principles underlying the protection of commercial speech:
"The commercial market place, like other spheres of our social and cultural life, provides a forum where ideas and information flourish. Some of the ideas and information are vital, some of slight worth. But the general rule is that the speaker and the audience, not the government, assess the value of the information presented. Thus, even a communication that does no more than propose a commercial transaction is entitled to the coverage of the First Amendment." (Edenfield v. Fane, 123 L. Ed. 2d 543, 113 S. Ct. 1792, 1798 (1993).)
We will explore and define consumer demand theory, which is largely centered on the study and analysis of the utility generated from the satisfaction of wants and needs. How does Galbraith in his article, page 282 in our text, explain the assumptions around this theory? We are all consumers, do you agree?
We will explore the Federal Trade Commission who has a dual propose of promoting competition and protecting consumers. And the Lanham Act which governs trademarks, service marks and unfair competition.
In addition, we will read and discuss advertising aimed at children.
Read: Articles and Case Studies
The materials below are recent articles that will provide additional information for your discussion blogs and journal reflections. The articles here are replacing those originally posted in your syllabus, I chose these because I thought they were more aligned with the readings and would be more beneficial for your discussion blog and journal entries.

Higg Index Will shoppers pay more for products that are marketed...