Purpose Of Government Regulation: Progresso Soup

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Purpose of Government Regulation The government regulation of private business is broadly intended to protect employees, consumers, and the environment by introducing an element of human consideration into the otherwise purely profit-driven motives of companies. In the United States, all levels of government participate in regulating business to some extent. According to jurisdiction, the federal government regulates on a much broader scale than municipal governments. (Machan 1988) Further, the reach of the federal government allows for the additional auxiliary function of industry agenda setting as a result of regulation. By determining that an issue needs to be regulated, the federal government increases awareness of an issue both within…show more content…
In 2007, Progresso Soup (owned by General Mills) received a zero-point Weight Watchers rating and subsequently captured a significant portion of the canned soup market. In September 2008, Campbell Soup responded to their decreased market share by running a two-page advertisement in the New York Times claiming that their Select Harvest soups were made with “TLC,” while Progresso soups were made with “MSG.” (Wong 2008) This led to extended negative ad campaigns between the two soup divisions, and ultimately ended with both submitting complaints to the NAD about the other’s conduct. The NAD found advertisements from both Campbell and Progresso to be at fault and suggested the removal of all related advertisements. (Clifford…show more content…
However, the market was interested in a healthy canned soup, and their advertising campaigns ultimately convinced the consumer that neither company was honest about the health benefits of their product. As a result, the overall profit in the canned soup sector has been in steady decline since Fall 2008. (Clifford 2009) By focusing their campaign on tearing down their competitor, rather than simply educating the consumer, both companies went too far in their campaigns and alienated their own market. Effects of Industry Self-Regulation The aggressive and accusatory process of self-regulation persists because more often than not it is successful. The aggressor company increases its market share by appearing to take the moral high ground over its competitor in the eyes of the consumer. In this sense, companies are effectively able to use an image of morality to as a marketing tactic for their products. Results of Government Regulation on Product

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