The FTC issues industry guides for a variety of products, services and marketing practices. The U.S. Court of Appeals for the District of Columbia Circuit upheld the rule, reasoning that "the rule aims to prevent consumer cofusion about the total price they have to pay, and it goes without saying that requiring the total price to be the most prominent number is reasoablyy related to that interest." C. Robinson Patman Act In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. C. Bureau of Alcohol, Tobacco and Firearms A. C. Wheeler-Lea Amendment D. an affirmative disclosure. which of the following is CORRECT regarding the death benefit amount? The test is whether the consumer's interpretation or reaction is reasonable. In the actual implementation and application of the 2 critical components of the FTC's rules against deceptive advertising, 3 key considerations emerge that are set forth: -insurance company, an insured's status under social security can be described as.. *To illustrate this point, Scalia noted that a person may not opt out of paying income taxes just because he or she soesn't agree with how the govenrment is spending the money. C. Freedom to stop the airing of any advertisement 1st amendment doesn't protect false/misleading ads or ads for unlawful goods/services. Professional Development. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a In 2008 the FTC clarified that the "valid physical postal address" that must be disclosed by the sender of commercial e-mail messages can be either a registered post office box or a private mailbox established under U.S. 3. A. employment, national security, and trade. Way back in the 1800s, there were several giant businesses known as Trusts that controlled whole sections of the economy. Endorsements must reflect honest opinions, findings, beliefs or experiences of the endorser. Will you buy the book? Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. Federal Communications Commission WebA) It is effective in situations in which competitors are able to undercut prices easily. -insured employee E. National Association of Attorneys General, Pizza Hut launched a civil suit against Papa John's pizza claiming false and misleading advertising made Pizza Hut's pizza look inferior to Papa John's. The media must accept all advertising they receive because of First Amendment that guarantees the freedom of speech. C. affirmative disclosures No. In general, advertisements of alcoholic products must be truthful and without deception. In most cases they probably will not go to that expense. -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. adopted to stop unfair competition in the marketplace; section 43A creates a legal cause of action for false advertising, allowing for federal civil lawsuits based upon false advertising and endorsements. That obviously can add up very fast. The government justified the rule by arguing that it sought to discourage young drinkers from buying a particular beer or malt liquor because it had the highest alcohol content. C. National Advertising Review Board Advertising . There was no government ban on the disclosure of the alcohol content in advertising for these brews, Justice Clarence Thomas wrote. This agency was responsible for putting warning labels on alcoholic beverage advertising and If a participant is required to give up something of value in order to participate in a game or sweepstakes, then _____ is present, and the promotion is considered a lottery. -set sales quota in this situation, the treasurer may be found guilty of which of the following? Most newspapers ship at least a few copies across state lines. B. ad substantiation. -form a large PPO on a statewide level Admisnitrative law judges can hold hearings, which are somewhat like trials, to determine whether the FTC charges are valid. D. before the ad appears. The next remedy on the ladder is voluntary compliance and is used for advertising campaigns that are over or nearly over. 2. -premium past due An entire industry can be treated similarly, and just one or two businesses are not picked out for complaint. A. cease-and-desist. is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. 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. At this point one of three things can happen: Ad substantiation FTC's means to police deceptive advertising, Guides and the Child Online Privacy Protection Act -human resource department Unfairness -all serve 7 terms May also argue the claim in question is not material, and therefore will not impact a purchasing decision. A. misleading omission 2. D. limits on the amount of television advertising per hour targeted to children are eliminated. Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and refrain from doing so until a hearing is held. Federal Trade Commission. These trusts were monopolies; they combined all competition into one company so they could control the price. Which of the following statements describes the media's role in the self-regulation of advertising? Nevada allowing prostitution in some counties, Airline tickets having to prominently show total price, and Baltimore ordinance banning alcohol ads near children's facilities are all about ________________________. Postal Service regulations. E. if the ad runs for more than six months. ) Incorrectly implying that an endorser uses and advocates a brand. Don't press 1 to speak to a live operator and don't press any other number to get your number off the list. Typically the advertising campaign is already over. -fully insured The judge works within the FTC and officiates at these hearings. WebAdvertising is not equally productive for firms in every market type. B. all clients and There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. Businesses must have evidence to back up their claims. The advertiser can agree to sign the agreement, but the commissioners reject it. C. The Wheeler-Lea Amendment is using ____, which is a(n) ______ form of advertising. B. offer only merchandise and no cash as part of the sweepstakes prizes. -insurers E. U.S. Supreme Court rulings, The _____ moved against a number of national advertisers as a result of inactivity by the Federal Trade Commission (FTC) during the Reagan administration. E. Food and Drug Administration, In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ broad jurisdiction to regulate the advertising of cigarettes and smokeless tobacco. C. the findings of marketing research studies. B. If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. A variety of federal agencies are empowered to enforce consumer protection laws. The act or practice must be considered from the perspective of a consumer who is acting reasonably. A. puffery B. The judge also has the authority to dismiss the case. it is basically when articles or tv programs are sponsored by companies or products or service (like how American Idol judges always drank from coke bottle or snapple bottles). A. C. Clayton Antitrust Act WebAdvertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. National Association of Broadcasters First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. 5. -An advertiser may use an endorsement of an expert or celebrity only as long as it it has good reason to believe that the endorser continues to subscribe to the views presented. These statutes protect consumers from predatory business practices by ensuring fair competition exists. -budget is $300 million Trade Regulations Rules: D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. Corrective advertising, in which an advertiser must admit in future advertisements that past advertisements have been incorrect Department of Foreign Affairs D. Most advertising cases investigated by the NAD are resolved without being sent to the NARB. The advertiser can refuse to sign the agreement. 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 D. Puffery 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. Litigated orders to advertisers to terminate a particular advertising claim, failure to comply with which can result in severe penalty D. corrective advertising. E. the consumers may sue the company for non substantiation of the ad. Lawsuits for false advertising claims were relatively rare until the last quarter of the 20th century. 17. At this point either side can appeal to the commissioners to overturn the ruling of the judge. 3. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? The following are all instances in which a court can overturn an FTC ruling: (1) "convincing evidence" that the agency made an error in the proceedings, (2) no evidence to support the commission's findings, (3) violation of the Constitution-for example, the agency did not provide due process of law, (4) the action goes beyond the agency's powers; (5) facts relied on in making the ruling are not supported by sufficient evidence, and (6) arbitrary or capricious acts by the commission. Injunctive power to immediately halt advertising campaigns that could cause harm to consumers Champion Sportswear has developed a "Super Bowl Sweepstakes" that it plans to promote. The hearing is a lot like a trial, only more informal. -The test of false advertising, for years a complex configuration of criteria, was reduced to basically 3 parts: A. misinterpretation C. coercion -may raise premiums at policy renewal Federal Trade Commission -custodial care B. a superlative; illegal A. Postal Service have laws that govern the use of a(n) ____, whereby a company proposes to send merchandise to consumers and expects payment unless a rejection or cancellation notice is sent by the consumer. -It was easier to block a competitor's claims than to win damages, because in order to gain a monetary award the plaintiff had to show specific monetary loss, something that is often difficult to do given the nebulous nature of advertising claims and the forces that motivate a consumer to buy a specific brand of a product. Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: WebRegulatory concerns never play a major role in the advertising decision-making process. Claims about durability, performance, warranties or quality have also been consider material. [4230]+[wxyz]=[2305]\left[\begin{array}{rr} C. National Advertising Review Board C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. E. Corrective advertising, Under the FTC's program of ____, Novartis Corporation was required to run advertising informing consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain. advertising regulations exist in order to? If either of the last two events occur, a complaint is issued against the advertiser and a hearing is scheduled before an administrative law judge.
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