FTC regulatory activity and the information content of advertising

Meta-analysis of studies examining more than 66,000 U.S. advertisements ind icates thar advertisements contained significantly fewer objective informat ion claims during a period of strict advertising regulation by the Federal Trade Commission (1971-1981) than in the subsequent, less stringent period (1982-1992). The results do not appear to be due to spurious effects of aty pical studies, other contemporaneous trends in the United States, or global economic factors. An important implication for public policy is that stric t advertising regulation may have reduced the amount of advertising informa tion available to consumers.