This report reviews and analyzes the effects advertising has on consumer choice, national values, and life styles. It is intended to aid consumer educators and others in related fields. The report's focus is on two central issues: consumer sovereignty and patterns of personal, industrial, and national resource allocation. The first of four chapters explores the concept of consumer sovereignty and the conditions under which it is obtained. Also there is an attempt to clarify the manner in which advertising can facilitate or hinder the functioning of the private market system in the interests of society as a whole. In chapter 2 there is an examination of the indirect effects on consumers that advertising has been seen to have by causing shifts in various patterns of industrial, family, and national resource allocations. Chapter 3 discusses broader social implications of advertising as it impacts especially through television and corporate-sponsored advertising on our social and political lives. The final chapter highlights major findings of the previous chapters as they pertain to the possible content of consumer education programs. A bibliography is included. (CSS)