I've been thinking a lot about industrial revolutions
lately, but mostly about the one we have only recently entered -- the AI one -- and the rapid impact it has already had on the ad industry.
So I was struck this morning when I received news
from the Institute for Advertising Ethics (IAE) that it's already rebooting its founding principles to catch up with the impact of AI. I mean, the IAE is only five-years-old, but it's founding
pre-dates a couple of rapid, back-to-back revolutions in AI, including both generative and agentic.
The new principles -- linked to
here and pasted below -- don't actually mention AI explicitly, but they were conceived to address the unintended consequences of its impact on all facets of advertising, especially how it can be
used to mislead and misrepresent what advertisers are communicating to consumers.
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The IAE's original principles, which were developed with the American Advertising Federation and the
University of Missouri, were a good start, but the IAE says the revisions "reflect a shift from message-level guidance" toward "governing the design and deployment of advertising systems that shape
consumer choice at scale."
I think machine automation is implied in that shift, but I think the IAE could have gone further than just addressing AI's impact on ad industry pros and the
consumers they are communicating to.
The new IAE principles could also have begun to address the shift to so-called A2A marketing, in which AI agents are proxies for both ad pros and
consumers.
For the life of me, I don't know how you'd go about instilling ad ethics in agents themselves, but it's something I think we should at least start thinking about, because they
increasingly will be the intermediaries between consumers and brands.
Interestingly, one of the technologies that will help accelerate that -- the IEEE's new P7012 technical standard governing
how brand agents interchange with consumer agents -- was partially unveiled at the IAE's Global Ethics Day late last year.
The IEEE, conceived the standard -- also known as MyTerms -- with
ProjectVRM, and those organizations will finally have a big public launch of MyTerms next week, and I recommend you register here to log-in, if it hasn't already maxed out.
Sadly, I have to report for jury duty that morning, so I'm not sure I'll get to sit in, but if I do you can rest assured I'll cover it.
The Institute for Advertising Ethics revised
Principles & Practices:
Principle 1.
Truthful and Non-Misleading Communications
Advertising, public relations, and other marketing
communications professionals should ensure that their advertising is truthful and not misleading, and should not omit, conceal, or obscure material information in ways that manipulate audiences and
impair the audience’s ability to make informed choices.
Principle 2.
Substantiation
Advertising claims, whether expressed or
implied, must be supported by reasonable proof before they are disseminated in order to ensure that consumers are not misled by unproven or exaggerated assertions.
Principle 3.
Fairness
Advertising professionals should treat consumers fairly and should not engage in dark patterns or any other practice that unfairly manipulates consumers
or undermines trust. Understanding that children, the elderly, and other vulnerable audiences may be more susceptible to being deceived or unfairly manipulated, advertising practices should be
designed with the intended audience in mind and with the reasonably foreseeable potential harms that could result. The duty of care rises in proportion to the potential for harm.
Principle 4.
Social Responsibility
Advertising should be prepared and disseminated with a due sense of responsibility to society, taking into account
its reasonably foreseeable effects on consumers, markets, and the public. It should respect human dignity and should not degrade, demean, or exploit individuals or groups, and should be practiced in
ways that support a legitimate, competitive, and well-functioning marketplace and reasonably foreseeable positive outcomes for consumers and society.
Principle 5.
Disclosure
Where the disclosure of additional material terms is necessary in order to prevent a claim from being misleading, those terms should be disclosed
clearly and conspicuously in a manner that allows them to be easily seen, read, and understood by the consumers to whom the advertising is directed.
Principle 6.
Transparency
Consumers have a right to know when content is advertising. Advertising and other sponsored content, including communications by influencers and
other endorsers, should be clearly identifiable as advertising, including where content is generated, personalized, amplified, or materially shaped by automated or algorithmic systems. Such content
should not be created or designed to manipulate or obscure the intent of the communication.
Principle 7.
Privacy
Advertisers should
design their advertising and data collection practices with a “privacy by design” mindset, keeping the consumer in mind and ensuring that the privacy and security of consumer data are
maintained. Advertisers should collect data only for legitimate and lawful purposes, limit the collection of sensitive data to when absolutely necessary, and retain data only for as long as reasonably
necessary. Advertisers should also provide appropriate choices to consumers regarding whether, how, and to what extent their information is collected, used, or shared, and should ensure that those
choices are transparent, simple, and respected and disclosed in accordance with all applicable laws and regulations. Advertisers should recognize that consumer consent alone does not eliminate ethical
responsibility where data practices create reasonably foreseeable risks of misuse, inference, or unintended harm.
Principle 8.
Voice and Internal Processes
Advertisers, advertising agencies, and other companies that are part of the advertising ecosystem should maintain processes to review communications and practices for ethical
risks and to resolve the concerns before they reach the public. They should ensure that when ethical concerns are raised, they are treated seriously and with respect, and that they may be raised
without retaliation. Organizations should further ensure that such concerns are addressed in a timely and accountable manner, proportionate to the significance of the risk identified.
Principle 9.
Commercial Relationships
Advertisers, advertising agencies, and other companies that are part of the advertising ecosystem must deal with
each other honestly and transparently, ensuring commercial relationships are free of undisclosed conflicts to preserve trust in advertising.
Principle 10.
Lawfulness
Advertisers must ensure that their advertising complies with applicable laws and regulations, recognizing that legal compliance is a minimum standard and that ethical
practice requires conduct that sustains integrity and public trust.
Principle 11.
Accountable Self-Regulation
Where credible,
independent, and accountable advertising self-regulatory mechanisms exist, advertisers should participate in good faith to address concerns, correct errors, and promote responsible practices,
recognizing that such participation helps sustain public trust and the effective functioning of the advertising marketplace. Where such mechanisms are absent, insufficient, or not reasonably
accessible, advertisers should support their development or improvement, recognizing that accountable self-regulation strengthens public trust and the long-term functioning of the advertising
marketplace.