advertising regulations exist in order to quizlet
Although many products and services are sold locally only, nearly every conceivable advertising medium is somehow affected by or affects interstate commerce. The commission evaluates the entire advertisement when examining it for misrepresentation. 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." A. B. speech that promotes a commercial transaction. Under section 5 of the FTC Act (as amended by the 1938 Wheeler-Lea amendment), the FTC is responsible for regulating: According to FTC policy, a trade practice or action is "unfair" if it: "the Commission will find deception if there is a misrepresentation, omission or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer's detriment", "a misrepresentation, omission, or practice" The appellate court reasoned that Craigslist "is not the author of the ads and could not be treated as th 'speaker' of the posters' words." Information Technology -the court held it went against First Amendment Litigated Orders and Injunctions: C. equity Trading stamps, contests, freebies, premiums and even product labels are included in this definition, in addition to the more common categories of product and service advertising. Express claims as to the attributes of a product are always considered material. In 2012, a federal appellate court uhoeld a Department of Transporation rule affecting the price of tickets advertised by airlines. Within how many days must a producer notify the department of banking and insurance of a change in address? C. First-Amendment Analysis III only. Consent Agreement: C. Robinson Patman Act D. an affirmative disclosure. For instance, in 2012 NAD determined that Gillette's use of the term "MoistureRich" in the name of its "Gillette Venus ProSkin MoistureRich" women's razor conveyed the misleading message that the razor moisturizes the skin while one shaves. B. \end{array}\right] E. National Association of Attorneys General, C. Bureau of Alcohol, Tobacco and Firearms, The _____ is a government regulation that is increasingly being used by companies to sue competitors for false or misleading advertising claims. * D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. 3 sections of the act expanded the remedies the FTC can use against deceptive advertising. _______________________ (_____): This organization, a self-regulatory forum for the advertising industry, reviews national advertising for truthfulness and accuracy, and it provides a form of alternative dispute resolution for companies that is cheaper than litigation. -notify the existing insurer of the proposed replacement -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: B. -lengthy elimination period, premium mode is a term used to describe the b. that harms the environment. 1. -beneficiary, replacement regulation is designed to protect In an article on the CAN-SPAM Act, attorneys Glenn B. Manishin and Stephanie A. Joyce identify 5 specific components of the law: Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: -existing producers B. E. advertising substantiation. C. National Advertising Review Council WebI. D. before the ad appears. A. It has its own standards of practice and creative code. A. -term life policies are the only type of insurance that allows policy loans In response to a request from the Institute for Public Representation for such a policy statement, the FTC said corrective advertising may be applied: "If a deceptive advertisement has played a substantial role in creating or reinforcing in the public's mind a false and material belief which lives on after the false advertising ceases, there is clear and continuing injury to competition, and to the consuming public as consumers continue to make purchasing decisions based on the false belief." WebMost direct influence has been on regulation of advertising for alcoholic beverages. Free Speech Matrix D. affirmative disclosure order The key elements in the FTC's definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it has: A. order the company to stop running the ad. Advertising . -defer all costs to the federal government for public assistance programs, receive matching funds to expand public assistance programs, ownership of a life insurance policy may be temporarily transferred with a(n), replacement regulation is designed to protect the interests of Federal Trade Commission. This is known as: 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." The FTC program that requires an advertiser who is found guilty of false or misleading advertising claims to run ads to rectify the situation is known as: It applies to "commercial electronic mail messages" that have as their "primary purpose" the "commercial advertisement or promotion of a commercial product or service." D. cease-and-desist Falsely implying that a benefit is needed. There was no government ban on the disclosure of the alcohol content in advertising for these brews, Justice Clarence Thomas wrote. A. within one month of the appearance of the ad. insured suffered an injury as an innocent bystander during a bank robbery. D. advertisers, agencies, and the media. The agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. 48 of those cases were resolved with court orders that cumulatively required payment of nearly $21 million in civil penalties and $12 million in redress or disgorgement of profits. The origin of the Federal Trade Commission's corrective advertising program came from a deceptive advertising case involving: The companies that received the warning letters had 15 working days to inform the FDA of the steps that they were or would be taking to correct their labels. -Comparative advertising, in which an advertiser not only promotes his or her own goods but tends to disparage the product made by a competitor, became more common. A material misrepresentation or practice is one that is likely to affect a consumer's choice of a product. B. E. affirmative disclosure. C. Affirmative Disclosure A. Native Advertising/sponsored posts - have come on the rise; it's important to be aware of Three major divisions of the Federal Trade Commission are the Bureaus of: Spoekspersons for the FTC have said that the agency will use the power only in those instances in which the advertising can cause harm, in those cases that contain a clear law violation, and in those cases in which there is no prospect that the advertising practice will end soon. an agent is required to keep replacement forms on file for at LEAST __ years.. a producer who sells an individual life insurance policy in new jersey MUST deliver to the policy owner a(n), contain content approved by the commissioner, the names of the insurance companies represented by the producer B. Lanham Using Federal Trade Commission Act A television station won't advertise a sporting event that will be telecast on a competing channel. A. both an encoding and a decoding tool for communications. A. Listerine. Webadvertising regulations exist in order to? 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. D. limits on the amount of television advertising per hour targeted to children are eliminated. B. advertisers so that they can sue media for not providing them with the promised reach and frequency. B. selective exposure. Does this message injure the plaintiff? *Corrective Advertising*is a highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient. A. Deception 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 With the rapid growth of comparative advertising (in which the advertised product is compared to a competitor's product), more and more advertisers have taken competitors to court over what they claim is deceptive and false advertising. Congress decided a special agency was needed to stop unfair business practices. Alcohol Advertising Laws The First Amendment allows for a lot of freedom of speech in general and therefore limits how much the federal government can regulate advertising, even in regard to alcohol. The next remedy on the ladder is voluntary compliance and is used for advertising campaigns that are over or nearly over. which of the following statements is true? -producers, a guaranteed issue insurance policy has no D. Wheeler-Lea Amendment Marketing Orders are a binding regulation for the entire industry in the specified geographical area, once it is approved by the producers and the Secretary of Agriculture. The court thus ruled in favor of the federal beef promotion program and its compelled subsidization of advertising to which some cattle ranchers aand farmers object. Finally, via TRRs the FTC is able to deal with problems more evenhandedly. Trade regulation rules, guides & Child's Online Privacy Protection Act, FTC issues industry guides for a variety of products, services, and marketing practices. Advertising Practices found to be unfair or deceptive 2. D. Television is the most carefully scrutinized of all forms of advertising. Vision Council of America -Not only is it now possible for plaintiffs to win actual damages and court costs from the defendant, but they can also tap into any profit made by the competitor through the use of a bogus advertising campaign. A. enhance the credibility of the publication. 2. B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends. Ad substantiation Presence of superlative words in the advertisement B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. The Federal Trade Commission has the power to regulate virtually all advertising that is deceptive or misleading. -agents. 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. If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. A man owns an Audi, a Ford, and a VW. The high court has granted states fairly extensive authority to regulate advertising for professional services by individuals like doctors, lawyers, dentists and others. The NARC became involved in the self-regulation of electronic retailing when it initiated the: WebUnder the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. A. In 2008 the 7th U.S. FTC initiated this in 2003 that allows people to block the calls of telemarketers. 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. The commissioners then vote on whether to issue a complaint. Spam also represents an economically efficient and inexpensive way of marketing one's product or service. C. defined the requirements for advertising substantiation. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. The FTC was created by Congress in 1914 to police unfair methods of business competition. A. In addition to policing false advertising, the FTC is charged with enforcing the nation's antitrust laws and several federal statutes such as the Truth in Lending Law and the Fair Credit Reporting Act. Under this policy, express substantiation claims, such as "doctors recommend" and "specific tests prove," require the level of proof advertised. D. is concerned with the misrepresentation of premiums when used in sales promotions. WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. 0 & 5 E. avoid comparative advertising. 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. Individuals who are represented in the ads must be actual consumers, unless stated otherwise. E. distribution, distillation, and diversity. It held that an online roommate-matching service was not immune to liability under Section 230 of the CDA for posting information by others that violated the Fair Housing Act and California housing discrimination laws. Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. A. a commercial is rejected at the storyboard stage. A. Magnuson-Moss Act of 1975 Endorsement of a product by an unqualified spokesperson or by a spokesperson who doesn't use the product. D. California Test of Affirmation Endorsements must reflect honest opinions, findings, beliefs or experiences of the endorser. 8. E. Central Hudson Test, Federal regulation of advertising originated in 1914 with the passage of the _____ Act. -contributory The ___________________________________ is the primary agent of the government, but clearly not the only agent. D. Cease-and-desist orders 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 A. WebStudy with Quizlet and memorize flashcards containing terms like Any administrative action taken against a producer MUST be reported to the director within ___ days after the final disposition., How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?, According to the Affordable Care Act, new health Insurance This remedy is infrequently used. E. the advertising relies on the use of puffery to make its point. an advertiser promotes his/her own good and tends to pick holes in a competitor's version of the product. Erikson -statements that dividends are not guaranteed E. the FCC is granted the right to fine advertisers who exceeded advertising limits as defined by the act. The act or practice must be considered from the perspective of a consumer who is acting reasonably. The basic defense against any false advertising complaint is truth-that is, proving that a product does what the advertiser claims it does, that it is made where the advertiser says it is made, or that it is as beneficial as it is advertised to be. C. Federal Communications Commission E. Trade Regulation Bureau, Which of the following divisions of the Federal Trade Commission protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level? Freedom to advertise Twisting is best defined as. The advertiser can agree to sign the agreement, but the commissioners reject it. B. refer the case to an industry trade association. B. Sherman Antitrust Act 3. D. Trademark Improvements Act 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. D. uses any superlatives. Food and Drug Administration E. Freedom of press. There is a substantial state interest to justify the regulation. Parramore Corp has 12 million dollars of sales, 3 million dollars of inventories, 3.25 million dollars of receivables, and 1.25 million dollars of payables. E. Federal Trade Commission (FTC). 4. E. advertisers who do not want to be self-regulated. tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. Acceptable forms include: E. a commercial is rejected at the idea generation stage. 2. At times a business has challenged the FTC by arguing that its particular exposition is not an advertisement but an essay or a statement of business philosophy. -If you have a spokesperson, the consumer is affiliating your spokesperson and your brand together (this is what you have to assume) E. are issued by the National Association of Attorneys General. The act or practice must be considered from the perspective of a consumer who is acting reasonably. monk cast member dies, why is nexgard spectra not available in the us, william o'leary obituary 2021,