Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations

Executive Summary

The legal team’s concerns are caused by the sales and marketing department’s desire to implement the rewards membership programs in low-income markets. While both the company and the community would have profited from this decision, ethical and legal issues can significantly influence the process negatively. I was asked to choose two main legal and ethical concerns and propose rational recommendations to avoid adverse effects. My recommendations are based on maintaining legal and ethical standards without compromising the company’s profit.

The advertisement point was chosen for a legal issue. Nowadays, the media is full of fraudsters who post advertisements containing false information, viruses, or other harmful data. Because of this, it is necessary to elaborate and maintain qualitative and customer-friendly advertising that will not harm but benefit both the company and the communities.

Addressing an Ethical Issue

Considering the ethical issues, exploring the peculiarities of collecting and using consumers’ data is essential. Analysing customers’ preferences and needs is a crucial part of any company’s success because it allows for establishing a client-oriented strategy. However, collecting data is one of the most dangerous actions from an ethical perspective.

Providing a Recommendation

The recommendation concerning the legal issue of advertising is based on the profound research of federal laws and policies. For example, according to Truth in Advertising (n. d.), “federal law says that ads must be truthful, not misleading, and, when appropriate, backed by scientific evidence” (p. 1). Consequently, the team will obtain the basic information to help both avoid acting against the law and construct rational advertising for customers and the company’s benefits.

The recommendation regarding the ethical issue of collecting client data is based on the need to establish the questionnaires in the form of messages. This programming tool will send clients a notification before any possible collection of their private data. The customers can choose independently whether they agree with the data collection, which is a part of their rights (California Consumer Privacy Act, 2023). It means that the appropriate investment in program software should be made.

References

California Consumer Privacy Act (CCPA). (2023). Rob Bonta. Web.

Truth In Advertising. (n. d.). Federal Trade Commission. Web.

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StudyCorgi. (2025, October 1). Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations. https://studycorgi.com/legal-and-ethical-concerns-in-rewards-programs-advertising-and-data-privacy-recommendations/

Work Cited

"Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations." StudyCorgi, 1 Oct. 2025, studycorgi.com/legal-and-ethical-concerns-in-rewards-programs-advertising-and-data-privacy-recommendations/.

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StudyCorgi. (2025) 'Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations'. 1 October.

1. StudyCorgi. "Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations." October 1, 2025. https://studycorgi.com/legal-and-ethical-concerns-in-rewards-programs-advertising-and-data-privacy-recommendations/.


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StudyCorgi. "Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations." October 1, 2025. https://studycorgi.com/legal-and-ethical-concerns-in-rewards-programs-advertising-and-data-privacy-recommendations/.

References

StudyCorgi. 2025. "Legal and Ethical Concerns in Rewards Programs: Advertising and Data Privacy Recommendations." October 1, 2025. https://studycorgi.com/legal-and-ethical-concerns-in-rewards-programs-advertising-and-data-privacy-recommendations/.

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