What are some concerns surrounding cause-related marketing?
On April 6, 1999, the attorneys general of 16 states, along with the District of Columbia Corporation Counsel, issued a preliminary report on cause-related marketing titled What’s in a Nonprofit’s Name? The purpose of the report was to explore guidelines and principles for agreements in which a nonprofit allows its name and logo to be used in a for-profit entity’s marketing and advertisement campaign in exchange for a fee from the for-profit. The report expresses strong concern for potential fraud and consumer deception in cause-related marketing agreements. Essentially, the recommendations would mandate that all cause-related marketing advertisements explicitly (a) state if a nonprofit has or has not endorsed a product, (b) disclaim the superiority of a product unless the claim can be substantiated, (c) state if a consumer’s purchase will affect contributions to the nonprofit (if applicable), and (d) disclose the exclusivity of the arrangement between the for-profit entity and nonprof
