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Regulations

Plain Packaging and its Unintended Consequences

This Economic Note is the second in a series on the growing tendency of governments around the world to regulate the advertising industry more and more strictly. Whether in the name of consumer protection or health concerns, decision makers prefer to attack advertising for products deemed harmful rather than prohibiting them directly.

The Influence of Advertising on Consumption

In many countries around the world, governments are increasingly tempted to regulate the advertising industry. Whether in the name of consumer protection or health concerns, advertising for products that are perfectly legal must conform to ever stricter rules. Think of alcohol, tobacco or fast food, for example. This worldwide trend was recently highlighted by the head of planning for a well respected ad agency in the British newsweekly The Observer.

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