Because of concerns about the effectiveness of mass media advertising, more and more firms are using product placements, also referred to as branded entertainment, to put their product in front of consumers. But is this practice really ethical?

Are consumers deceived when they see a can of diet Coke on the American Idol judges' table? Or what about the can of Dr. Pepper on the table of Tony Stark's house in Iron Man 2?

Does the average consumer believe the can is there because it is the favorite of a TV or movie celebrity or are most consumers savvy enough to recognize it as a paid product placement?

Should the government regulate product placements, perhaps requiring TV programs and movies to inform consumers about the paid placements? Are consumers really harmed by such practices?