If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. A. It's What's for Dinner" and "Got Milk?" No. President Theodor Roosevelt broke up many Trusts by making anti-trust laws. To be considered commercial speech, it only has to meet 1 of the 3 questions. all commercial e-mails must disclose a) it is an advertisement or solicitation, b) an opt-out mechanism, and c) a "valid physical postal address.". 1. B. puffery. E. advertising substantiation. Freedom to advertise If a case is not resolved to its satisfaction, the NARB has the power to order an advertiser to stop running its ads. A. Listerine. Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires. C. Comparative advertising Food and Drug Administration -third party administrators B. The U.S. Supreme Court established the ____, a four-part test, to determine restrictions on commercial speech. 3. In other words, the government could focus its attention with the registry only on the problems caused by commercial sales calls without having to also sweep up and control problems caused by political and charitable calls. Almost everyone who uses electronic mail has received unsolicited commercial advertising known as "spam." D. Federal Trade Commission E. Federal Communications Commission, D. National Association of Attorneys General. US Postal Service (USPS) Responsible for regulating direct mail advertising and -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. Bureau of Economics Privacy on the internet-in particular, companies and advertisers tracking and monitoring the Web sites consumers visit-is now a major concern of the FTC. Which of the following statements is true about National Advertising Review Council (NARC)? Food and Drug Administration In doing this, the advertiser makes no admission and the agency no determination that the claim is deceptive. B. C. contradictory option -notify the existing insurer of the proposed replacement -Endorsements must reflect the honest opinions, findings, beliefs or experiences of the endorser and may not contain any representations that owls be deceptive or could not be substantiated if made directly by the advertiser. the New Jersey Temporary Disability Benefits Law. provides non-occupational disability benefits. -custodial care ________________________________: All commercial e-mail messages must disclose 3 specific items of content: (a) a clear and conspicuous identification of the message as an "advertisement or solicitation," (b) a notice of "opt-out" mechanism, and (c) a "valid physical postal address." A large protion of that money, under the federal Beef Promotion and Research Act, has gone to finance generic advertising for the beef industry, including the "Beef. the role of the federal government was expanded when Medicaid was established by allowing the state to -person's net income E. the advertising relies on the use of puffery to make its point. D. corrective advertising. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. D. Vision Council of America A. The company must conduct careful studies to provide support for the claim because: D. FDA Act Guidelines developed by the FTC are used by state courts to administer regulations. Advertising Practices found to be unfair or deceptive 3. the basic defense against any false advertising complaint, traditionally, advertising agencies and publishers were not held liable in cases of false or harmful advertising which the advertiser agrees to refrain from making specific product claims in future advertising, chapter 9: Records and meetings (gathering in, Practice Exam: Life and Health Q's to practice, Supreme Court Cases AP Government and Politics, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Daniel F Viele, David H Marshall, Wayne W McManus. C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. C. avoid self-regulation. Falsely implying that a benefit is needed. B. offer only merchandise and no cash as part of the sweepstakes prizes. B. if the ad does not provide sufficient information to the consumers so as to make an informed decision. Several airlines challenged the rule on First Amendment grounds in Spirit Airlines v. U.S. De'p of Transporatition. Advertisers need to take special care when dealing with testimonials and endorsements. -It became somewhat easier for plaintiffs to win Lanham Act false advertising suits. C. American Association of Advertising Agencies Until the bill was signed, the FTC was limited to dealing with unfair and deceptive practices that were "in commerce." C. Cease-and-Desist WebAn agency relationship exists when one person, the _____ acts for, or on the behalf of another person, the _____. Does the FTC regulate all advertising? A. materiality. But Congress amended the act in 1989, and now the law also prohibits an advertiser from making false claims about a competitor's product as well. When the FTC issues a consent order on a final basis, it carries the force of law with respect to future actions. (c) How do we test a binary predictor for significance? A man owns an Audi, a Ford, and a VW. b. product safety. y & z In an article on the CAN-SPAM Act, attorneys Glenn B. Manishin and Stephanie A. Joyce identify 5 specific components of the law: * these rights are called Pr(\operatorname{Pr}(Pr( Audi after Ford )=0.6Pr(VW)=0.6 \quad \operatorname{Pr}(\mathrm{VW})=0.6Pr(VW after Ford )=0.4)=0.4)=0.4 C. Puffery legitimization The degree of substantiation that will be deemed reasonable varies with "the type of claim, the product, the consequences of a false claim,, the benefits of a truthful claim, the cost of developing substantiationand the amount of substantiation experts in the field believe is reasonable," the policy statement said. D. Federal Trade Commission Today, an individual can file a complaint online from the FTC's website. Professional Development. The FTC has many remedies to regulate deceptive or untruthful advertising: You Are Here: ross dress for less throw blankets apprentissage des lettres de l'alphabet advertising regulations exist in order to quizlet. D. Most media accept any advertising they receive since advertising is their major source of revenue. Way back in the 1800s, there were several giant businesses known as Trusts that controlled whole sections of the economy. Vision Council of America -insurance company, an insured's status under social security can be described as.. Magazines Significant omission of important information A. Puffery is illegal. Falsely implying that a test is scientifically conducted. A. It is very expensive to get a case solved through NARC. -budget is $300 million -Litigated orders *In a nutshell, the FTC's rules against deceptive advertising break down into 2 critical components:* *Corrective Advertising*is a highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient. D. is more stringently self-regulated than any other medium. You see an advertisement for a book that claims to show how you can make $1 million with no risk and with no money down. E. the burden of proof for advertising claims lies with the Federal Trade Commission. Federal Trade Commission The origin of the Federal Trade Commission's corrective advertising program came from a deceptive advertising case involving: They are: E. an illegal comparative advertisement. D. is concerned with the misrepresentation of premiums when used in sales promotions. The advertiser can agree to sign the agreement, and the commissioners vote to accept this agreement. WebAn orgnaization established and funded by businesses that operate primarily at the local level to monitor activities of companies andp promote fair advertising and selling C. The media can refuse to accept individual ads they find offensive or objectionable. E. corrective advertising, The _____ is a federal agency that was founded in 1934 to regulate broadcast communication that include the radio, television, telephone and telegraph industries. C. Advertising for contraceptives is completely banned on all networks since 1995. Substantiation of advertisements, in which the advertiser must prove all claims made in an advertisement -But courts began to ease this standard at about the same time that they began to increase the size of damage awards. B. providing full disclosure. [4230]+[wxyz]=[2305]\left[\begin{array}{rr} E. Federal Trade Commission (FTC). More part of the new law is that the endorsers may also be subject to liability for their statements. E. Advertising guidelines, According to Federal Trade Commission policy, the criteria for determining _____ are (1) a trade practice causes substantial physical or economic injury to consumers, (2) could be reasonably avoided by consumers, and (3) it must not be outweighed by countervailing benefits to consumers or competition. Ex: In 2010 the FTC mailed claim forms to more than 1,000 music fans because those fans allegedly were steered from Ticektmaster's Web site to its ticket resale Web site, TicketsNow, while buying tickets to attend Bruce Springsteen concerts the previous year. B. a superlative; illegal E. Substantiation, Under the _____ Doctrine, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. If an ad represents, wither directly or by implication, that the endorser is an expert, then the endorser's qualifications must in fact give him or her the expertise that he or she is represented as possessing with respect to the endorsement. The act's title represents a tortured acronym for a bill officially called the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003." -What's happening now needs to stop immediately It is also important to remember that an ad may mislead because it omits material information. Will you buy the book? C. U.S. -may cancel the policy only at renewal What is Parramore's cash conversion cycle (CCC)? WebThus, state and local governments remain free to regulate the time, place or manner, but not the content, of advertising and promotion of all non-cigarette tobacco products, subject to possible judicial review relating to the First Amendments protections of commercial speech. b. adopted the principle of caveat emptor. Vision Council of America Deceptive advertising Uder the terms of the CAN-SPAM Act, each separate e-mail in violation of the law is subject to penalties of up to $________________, and more than one person may be held responsible for violations. Although CAN-SPAM does not provide a civil remedy for those of us who receive spam, a provider of Internet access service that is adversely affected by spamming activities on its service may bring a civil lawsuit against the spammer in any federal court in the U.S. seeking both a permanent injunction to stop the spamming and monetary damages for harm caused by the spam. C. Comparative advertising E. a commercial is rejected at the idea generation stage. 5. C. affirmative disclosure. Critics of the FTC's ad substantiation program argue that: Again, this law provides little relief for consumers. E. advertisers, government, and the television networks. E. the impact of cease-and-desist orders, Controversy over the FTC's authority to regulate unfair advertising practices began in 1978, when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children. -joint The plaintiffs thus alleged a violation of their First Amendment right not to be compelled to fund speech-an unenumerated right to remain silent, as it were-with which they disagreed. One of the FTC's most important responsibilities is to ensure that Americans are not victimized by unfair, misleading or deceptive advertising. The law outlaws bait-and-swithc advertising, in which customers are lured to a store with promises of low prices but then are pushed by salespeople to buy more expensive products. Trade regulation rules have had a great deterrent effect, as they comprehensively delimit what constitutes an illegal practice. But the system was not necessarily working well. D. STP Corporation. The merchant then claims the product is not available at the price but another model can be purchased at a high price. * For some specialized products or services, additional rules may apply. -The test of false advertising, for years a complex configuration of criteria, was reduced to basically 3 parts: Competition It is very difficult for non competitors to gain standing to sue for false advertising under the Landham Act. which of the following statements is true? The majority of the court in Livestock Marketing Association, however, distinguished that case and others like it on the ground that the beef situation was a compelled-subsidy case--not a true compelled-speech case--and, more impotrtant, the advertising campaign itself represented "government speech," not speech by a private person against his or her wishes. The new law expanded the jurisdiction to practice "affecting commerce." -recurrent disability Another word for advertisement is _____________________. -agents. When advertisements or sales practices are targeted to a specific audience, such as those aimed at children or people who are elderly or terminally ill, they will be viewed from the perspective of a reasonable member of that group. 3. What message, either explicitly or implicitly, does the ad convey? reggie purchased a life insurance policy with a face amount of $500,000. C. Federal Trade Commission. Although the burden is on the government to disprove the advertiser's claim, it is always helpful for an advertiser to offer proof to substantiate advertising copy. voting power on major issues and ownership in a portion of the company. A. Telephone Consumer Protection Act of 1991. E. The four major television networks. ) -This act protects American consumers even more by preventing mergers or acquisitions that are likely to stifle competition. The challenge wad filed with NAD by a competitor of Gillette, namely Schick, which makes "Intuition Plus" razors. The agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. -is not available to the public D. publishing the odds of winning. There must be a representation, omission or practice that is likely to mislead the consumer* The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. As with the structure of the Federal Communications Commission described in Chapter 16, no more than 3 of the 5 commissioners can be from the same political party. B. C. Lanham Act The most commonly used FTC remedy is the consent agreement, or _____________________________. Trade Regulation Rules: -no more than 3 commissioners can be from the same political party, Bryers case and FDA - label said no trans fat, but it had a lot of saturated and total fat - FDA said consumers will not be aware of the difference, Do Not Call List: B. advertisers so that they can sue media for not providing them with the promised reach and frequency. If the advertiser has had a good record in the past and if the offense is not too great, the company can voluntarily agree to terminate the advertisement and never use the claim again. B. Webadvertising regulations exist in order to? A. The signing of a consent order is an admission of guilt by the advertiser. The hearing is a lot like a trial, only more informal. B. consideration to address the negative aspects of spam, Congress and Bush signed into this law; it applies to the commercial electronic mail messages that have as their primary purpose the commercial advertisement or promotion of a commercial product or service, false/misleading messages, function return addresses and opt-out mechanism, 10 day prohibition period, disclosure requirements, aggravated violations, functioning return addresses/opt out mechanism. Which of the following statements about advertising by attorneys, dentists and physicians is true? -net death benefit will be reduced if the loan is not repaid When a complaint is received, FTC staff attorneys examine it to see if it has merit. -producers, a guaranteed issue insurance policy has no B. affirmative disclosure A. -lengthy elimination period, premium mode is a term used to describe the 2. III only. Since advertising campaigns are ephemeral , the FTC often has difficulty in catching up with the advertiser before the short-lived campaign has been replaced with something else. Central Hudson Test -beneficiaries B. Puffery is banned in a 1996 revision of the Uniform Commercial Code. Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. Consent agreement B. Litigated orders In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. NAD recommended that Gillette stop using "MoistureRich" in both the product name and as a descriptor when used in isolation in phrases such as "Treat Your Skin to MoistureRich." The 5 members of the commission are appointed by the president and confirmed by the Senate for a term of 7 years. tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. B. speech that promotes a commercial transaction. D. Cease-and-desist orders 5. E. Substantiation, The _____ is the government agency that has authority over the labeling, packaging, branding, ingredient listing and advertising of packaged foods and drug products. The National Advertising Division and the Child Advertising Review Unit, divisions within the Better Business Bureau, are the primary agents for this self-regulation. C. Consumer Protection To address the negative aspects of spam, Congress passed and President George W. Bush signed into law in 2003 the __________________. If they can find none, the case ends. The government's interest in reducing the amount of alcohol consumed by young people is a laudable goal, a unanimous Supreme Court said, but added that there is really no evidence this rule advances the goal. In particular, Johanns v. Livestock Marketing Association centered on a federal statute and related order adopted in the 1980s under which the U.S. secretary of agriculture imposes a $1-per-head assessment, knwn as a checkoff, on all sales of cattle in the U.S. The law also gave the agency important new power. Finally, via TRRs the FTC is able to deal with problems more evenhandedly. *3. A. commercial speech. In addition, political robocalls--a major source of annoyance for many during the 2012 election year--and robocalls from charities seeking donations are permissible. The FTC usually requires an advertiser to substantiate claims that go beyond those permitted by the guides or may even bring a false advertising action against the business. Cease-and-desist orders: *False/Misleading Messages* D. is more stringently self-regulated than any other medium. -$500,000 * B. is regulated through codes developed and enforced by the Federal Trade Commission. Trade regulation rules -annuity's guaranteed interest rate -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: C. NAD/NARB. By 2010, the FTC had brought more than 60 telemarketing cases alleging do-not-call violations. The agency believes the typical reasonable consumer does not take such claims seriously and thus they are unlikely to be deceptive. 1. D. false substitution WebStudy with Quizlet and memorize flashcards containing terms like Consumer protection laws regulate all of the following except: a. unfair trade practices. A. The law originally required consumers to re-register their numbers every 5 years to remain on the registry. Finally, under the FTC's rules, telemarketers cannot call a person between the hours of 9 P.M. and 8 A.M. unless the person has given prior consent to such late-night, early-morning calls. Omitting a needed qualification. Also, advertising aimed at a special vocational group, such as physicians, will be evaluated from the perspective of a reasonable member of that group. The Printer's Ink Statutes To implement this provision, the FTC in 2004 adopted a rule requiring spammers who send sexually oriented material to include the warning "SEXUALLY-EXPLICIT:" in the e-mail subject line or face fines for violations of federal law. Weban insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. -No, it is not political speech. C. First-Amendment Analysis Imagine that a company is nearing the end of an advertising campaign in which it has advertised that its mouthwash can prevent a consumer from getting a common cold. B. Lanham There are 2 key divisions of the Better Business Bureau's Advertising Self-Regulatory Council (ASRC), which was known until April 2012 as the National Advertising Review Council, that provide both advice to advertisers and out-of-court methods for resolving disputes about advertisements. *Attorneys for the FTC can seek these restraining orders in federal court. B. Advertising which praises the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally stating no specific facts. E. speech governed by the First Amendment to the U.S. Constitution. A. -only includes calls about goods or services Most commercials once rejected cannot be rerun. -insurance companies, policy owners from misrepresentation and loss of benefits, advertising material for a life insurance policy does NOT need to contain which of the following? Under the Reagan administration, the controversial _____ Doctrine, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive. E. are issued by the National Association of Attorneys General. C. equity National Advertising Review Board -may raise premiums at anytime -Missouri law banned billboards about SOBs to take down these buildings C. if the ad uses puffery. 2. The U.S. Supreme Court turned back a challenge to the appellate court's ruling, thus bringing an end (at least for the time being) to telemarketers' efforts to invoke free speech arguments to have the popular ban on unwanted phone solicitations declared unconstitutional. What happens to an advertiser who signs a consent decree, then violates the provisions of the decree? A chairperson, one of the 5 commissioners, is appointed by the president. D. discourage comparative advertising. In addition to such legal action, the FTC also educates consumers and businesses to encourage informed consumer choices, compliance with the law and public understanding of the competitive process. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. Almost anyone who has watched television advertisements during the past decade or so is familiar with trademarked slogans such as "Beef. Litigated orders to advertisers to terminate a particular advertising claim, failure to comply with which can result in severe penalty The Federal Trade Commission takes the position that: Such an agreement saves the advertiser considerable legal haste, publicity and money, all especially desirable since the advertising campaign is over or almost over. These acts are often called "Little FTC Acts," and the guidelines developed by the FTC in applying federal advertising law are used by the state courts in administering these state regulations. To be deceptive an advertisement must contain a representation, omission or practice that is likely to mislead the consumer, the advertisement or practice must be considered from the perspective of a reasonable consumer; and the representation, omission or practice must be material. The statute, set forth at 15 U.S.C. Bad publicity can cost a company millions of dollars. The Fair Housing Act is regularly enforced against print newspapers that run such discriminatory ads. A. consumers cannot distinguish between factual information and puffery. these are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices, if the ftc believes a claim to be deceptive, the company can voluntarily agree to terminate the advertisement and never use the claim again, also known as a consent order or decree is a written agreement between the commission and the advertiser in any representations that would be deceptive or could not be substantiated if made directly by the advertiser, the commission can issue an order to stop the particular advertising claim, the commission asks advertisers to prove all the claims made in the advertisements, the ftc forces the advertiser to inform the public that in the past it has not been honest or misleading, the ftc can seek an injunction to immediately stop advertisements that it believed to violate the law; the agency will only use this power in those instances where the advertising can cause harm, these can be issued to regulate advertising through an entire industry, 1) The advertiser can agree to sign the agreement, and the commissioners vote to accept the agreement. D. Affirmative disclosure C. Federal Communications Commission Self Regulation by the Advertising Industry, Local Regulation and Better Business Bureau. *2. A study by the National Advertising Division's Children's Advertising Review Unit found that the most prevalent violation of its voluntary advertising guidelines occurred with _____ aimed at children. John Oliver video on Native Advertising: Weba. d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. -Interstate commerce - anything that involves commerce between 2 states is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. a. affiliation. The act or practice must be considered from the perspective of a "reasonable consumer." B. can be decoded to have several different meanings. Harry Nims, a New York lawyer, drafted a model law called the *Printers' Ink statute+ (it was Printers' Ink magazine that urged passage of the law) in 1911. An entire industry can be treated similarly, and just one or two businesses are not picked out for complaint. Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. D. uses any superlatives. If you go to work at an advertising agency, you must understand that your agency may be held liable if it is an active participant in preparing a deceptive advertisement or if it knows or should know that an ad is either false or lacks substantiation. WebGovernment may regulate truthful advertising for legal goods and services if the following conditions are met: a. there is a substantial state interest to justify the regulation. D. economics, consumer protection, and competition, Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? A. In the past the FTC would have to issue a complaint against each advertiser and in each case prove that the statement rule that declares that claims of product superiority based on excessive dosage of vitamins and minerals are false and misleading.

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