Advertising Practices found to be unfair or deceptive 2. A. f(x)=(x5)(12x)f(x)=(x-5)(1-2 x) -method of payment C. Godiva claims that it makes the finest chocolates in the world. -a loan can be taken out for up to the face amount of the policy, net death benefit will be reduced if the loan is not repaid, signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT.. The judge also has the authority to dismiss the case. *In a nutshell, the FTC's rules against deceptive advertising break down into 2 critical components:* 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. *There is an "established business relationship" (EBR) exception to the do-not-call provisions* that allows a company to call a consumer with whom it has such a relationship, even if the customer's number is on the registry. 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. _____________________________ (______): This agency describes itself as the children's arm of the advertising industry's self-regulation program, and it evaluates child-directed advertising and promotional material in all media to advance truthfulness, accuracy and consistency with its "Self-Regulatory Guidelines for Children's Advertising" and relevant laws. who is able to love and work. Does this message injure the plaintiff? (The importance of this power alone cannot be overestimated. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: C. are issued by the Federal Trade Commission. B. Corrective advertising 5. _____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices. Department of Foreign Affairs The commission considers the entire advertisement as well as all other elements of a transaction when making this determination. If an advertiser disagrees with a NAD or CARU decision, it can appeal to the _______________________________. 3. These are the probabilities that he drives each of the other cars the next day: Pr(\operatorname{Pr}(Pr( Ford after Audi )=0.7Pr(VW)=0.7 \quad \operatorname{Pr}(\mathrm{VW})=0.7Pr(VW after Audi )=0.3)=0.3)=0.3 The ___________________________________ is the primary agent of the government, but clearly not the only agent. A life insurance policy sold in Louisiana can be contested by the insurer only during the first ____ years of the contract. B. A. uses puffery. How many ads are in your general vicinity each day? B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. Bureau of Economics B. puffery has detrimental effect on consumers' purchase decisions. Laws must be static and unyielding in order to provide stability for a society. Bureau of Compliance The advertiser can refuse to sign the agreement. -arbitrate claims Substantiation of advertisements, in which the advertiser must prove all claims made in an advertisement 2. -short-term disability Voluntary agreements by advertisers to terminate a deceptive advertisement a. affiliation. BBB is the largest and best known self-regulatory mechanism in United States, for controlling advertising practices, that has been established by the business community. 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. D. Federal Trade Commission 1. E. comparative disclosure. *Accurate information in the text may not remedy a false headline. The law also gave the agency important new power. What is the role of the leader and follower in the leadership process? E. requiring the consumer to pay a consideration. c. secured A. In other words, the creators of ads should be wary of creating false implications. -No ad containing an offer to sell a product should be published if the offer is not a bona fide effort to see that product. B. Web(1) An advertisement shall not utilize or describe nonguaranteed elements in a manner that is misleading or has the capacity or tendency to mislead. The FTC was created by Congress in 1914 to police unfair methods of business competition. In fact, the only lawful sales robocalls are ones where consumers have stated in writing that they want to receive them from the company in question. *Child Advertising Review Unit (CARU)*. WebAd Regulations >> Advertising is controlled by internal self-regulation and by external state and federal regulatory agencies such as the Federal Trade Commission (FTC), the Federal In this case the commission can issue an order, usually called a *litigated order,* to stop the particular advertising claim. C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. Advertisers claimed the Registry violated their First Amendment rights to free speech. *Disclosure Requirements* Local radio D. affirmative disclosure what kind of rider is this? D. Television is the most carefully scrutinized of all forms of advertising. E. distribution, distillation, and diversity. These (like the Sherman Act) were made to protect consumers and promote competition in the marketplace. Beginning in the 1990s the Food and Drug Administration (FDA) began an aggressive campaign against a variety of companies to force them to change their labeling and promotional practices. Writing for a 6-justice majority, Justice Antonin Scalia wrote that "the message set out in the beef promotions is from beginning to end the message established by the Federal Government" and that the secretary of agriculture "exercises final approval authority over every word used in every promotional campaign." Also, the time factor works in the advertiser's favor. B. WebI. C. the findings of marketing research studies. 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. A. the fairness doctrine. *Aggravated Violations*. -insurance company, an insured's status under social security can be described as.. The endorsement can be communicated by a verbal message, demonstration, picture or likeness, signature or other identifying personal characteristic or the seal of an organization. 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. -Attempts by competitors to undermine or dilute these images or claims were regarded more seriously than in the past. It is only acceptable to lie when done to protect an innocent person. [4230]+[wxyz]=[2305]\left[\begin{array}{rr} Food and Drug Administration. Bureau of Economics This agency was responsible for putting warning labels on alcoholic beverage advertising and Champion Sportswear has developed a "Super Bowl Sweepstakes" that it plans to promote. Does this message injure the plaintiff? The division of Consumer Protection * In 1995, the Federal Trade Commission issued a complaint against the manufacturers of New Balance and Saucony athletic shoes based on their "Made in the USA" advertising claims. "individually identifiable health information" ? -Also court said this case was "in the public interest". 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. -FTC regulates spam Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. B. a superlative; illegal The problem for Roommates.com was that it solicited specific content from users and forced them to use pull-down menus with questions featuring specific answer options in which they could express illegal and discriminatory views. -protections of proceeds against the insured's creditors E. U.S. Department of Welfare. (a) What is a binary predictor? Consent Agreement: Litigated orders A. puffery They would, instead, rather spend their own money on distictinve advertising for a particular niche or premium variety of beef, such as organizally fed. * Policies and procedures for self-regulation of advertising industry are established by the ____. -to tell them what they can and can't do 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. * Advertising . D. puffery; legal C. Comparative advertising C. First-Amendment Analysis Which of the following statements is TRUE? Express claims as to the attributes of a product are always considered material. A. WebTerms in this set (100) Advertisers are often supportive of voluntary self-regulation because: s self-regulation is viewed as a way of limiting government interference of advertising. D. corrective advertising. A. C. Lanham C. Clayton Antitrust Act Litigated Order: *Qualifying disclosures must be legible and understandable, the FTC has ruled. The advertiser is simply asked to prove the claims are truthful.The substantiation process today involves panels of experts who scrutinize advertisements and target for documentation those claims that seem most suspect. B. ad substantiation. Bureau of Competition f(x)=(x5)(12x). B. Lanham Act A. a consent order. The FTC 's rules state, among other things, the following: The statute, set forth at 15 U.S.C. The 3rd section of the law gave the FTC the right to sue in federal court on behalf of consumers victimized by practices that are in violation of a cease and desist order or by practices that are in violation of a TRR, a right that the agency has been reluctant to use. insured suffered an injury as an innocent bystander during a bank robbery. D. National Association of Broadcasters The _____ accepts cases dealing with product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims made in national advertising. 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. Magazines D. Lanham Act. Another angle that advertisers can pursue is to attack a different aspect go the government's case rather than try to prove the statement true. WebStudy with Quizlet and memorize flashcards containing terms like Consumer protection laws regulate all of the following except: a. unfair trade practices. E. The division of Economic Practices, The _____ gave the Federal Trade Commission the power to establish trade regulation rules. -producer C. is important to consumer and would likely have an effect on the purchase decision. -Not too often; almost as if a newspaper has to submit a retraction D. advertising substantiation C. According to the Federal Trade Commission consumers believe in puffery. C. National Advertising Review Board C. selective retention C. Direct Selling Association Act. Injunctive power to immediately halt advertising campaigns that could cause harm to consumers Using an ambiguous or easily confused phrase. As a discipline, marketing is not affected by things that occur outside of the firm's control. 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. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? D. is concerned with the misrepresentation of premiums when used in sales promotions. pat owns a 20-pay life policy with a paid-up dividend option. Postal Service period of time after the premium is due but the policy remains in force. D. uses any superlatives. The _____ regulates and controls the advertising of alcoholic beverages. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. (2) An advertisement shall not state or imply that the payment or amount of nonguaranteed elements is guaranteed. D. California Test of Affirmation E. Federal Trade Commission (FTC). All broadcasting stations are considered to affect interstate commerce. A. -It became somewhat easier for plaintiffs to win Lanham Act false advertising suits. B. creative boutiques, copywriters, and consumers. National Advertising Review Board Competition The _____ is sponsored by the Electronic Retailing Association (ERA), although it works independently of the ERA to create an unbiased self-regulatory system. E. Wheeler-Lea Amendment, Under the _____ passed in 1991, telemarketers must follow a complex set of rules developed by the Federal Communications Commission. Through custom and practice, the agency has defined advertising as any action, method or device intended to draw the attention of the public to merchandise, to services, to people and to organizations. D. Bureau of Reconstruction The advertiser is not responsible for every interpretation or behavior by a consumer. SUMMARY: Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. Part of the reason for this is that the Lanham Act's rules against false advertising, which are designed to remedy unfair competition, generally allow only economic competitors to sue. -set sales quota He drives every day and never drives the same car two days in a row. If he drove the Audi today, what are the probabilities for the cars that he will drive 444 days from now? So, in 1914, the FTC Act was passed and the Federal Trade Commission was born. The reason a magazine such as 'Good Housekeeping' regularly tests products and offers a "seal of approval" is to: Substantiation: Postal Service All claims made in advertisements must be substantiated such that, before disseminating an ad, advertisers must have a reasonable basis for any and all express and/or implied product claims, with claims relating to health and safety coming under even closer FTC scrutiny that typically requires proof by competent and reliable scientific evidence.
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