More part of the new law is that the endorsers may also be subject to liability for their statements. The change of a single word gave the FTC broad new areas to regulate. B. Lanham Act E. puffery. ) The _____ made it easier for Chevron to sue Texaco for this perceived misrepresentation. 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. B. B. Postal Service. A. B. D. corrective advertising. Consent Agreement: -conduct investigations The Magnuson-Moss Act of 1975: Central Hudson Test A. The FTC 's rules state, among other things, the following: agreed, observing that the adult struggles to attain intimacy and 8. 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. A. Drug companies must only submit their ads to us when they first appear in public. B. Central Bank advertises free checking with a minimum balance of $1,000. C. puffery legitimization But practically, it can regulate almost all advertising. * 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. Advertising by professionals (attorneys and physicians) may be regulated in a more restrictive fashion. D. advertising substantiation WebLaws must be static and unyielding in order to provide stability for a society. A variety of federal agencies are empowered to enforce consumer protection laws. The majority concluded that while "citizens may challenge compelled support of private speeech" they "have no First Amendment right not to fund government speech." 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. The FTC initiated in 2003 one of its most popular and well-used programs-the National Do Not Call Registry that allows people to block the calls of telemarketers. 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. \end{array}\right] It enforces the laws that prohibit business practices that are anticompetitive, deceptive or unfair to consumers, and it seeks to do so without impeding legitimate business activity. The U.S. Supreme Court established the ____, a four-part test, to determine restrictions on commercial speech. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. A. conducting the contest or sweepstake only at the regional level and not national level. The government had specifically limited the reach of the National Do Not Call Registry, which already had more than 50 million phone numbers by the time the appellate court issued its February 2004 opinion, only to telemarketing calls made by or on behalf of sellers of goods or services, and not to charitable or political fund-raising calls. You Are Here: ross dress for less throw blankets apprentissage des lettres de l'alphabet advertising regulations exist in order to quizlet. _________________________: The act proscribes as "aggravated violations," warranting additional civil and commercial penalties, (a) e-mail "harvesting" or the knowing use of harvested addresses, (b) the automated creation of multiple e-mail accounts used for commercial e-mail, and (c) the use of unauthorized relays for commercial e-mail messages. B. E. an illegal comparative advertisement. It's What's for Dinner" campaign. The law is not designed to protect the foolish or the "feeble minded," the commission has noted. -Substantiation b. that harms the environment. Advertising which praises the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally stating no specific facts. C. a commercial is rejected for reasons such as sex and politics. -if spam has anything to do with sexually explicit, in header, it has to say "SEXUALLY EXPLICIT:" in all caps and you have to scroll down to see the sexual explicit content -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. E. Federal Communications Commission, D. National Association of Attorneys General. -actively insured 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. -Advertising, as a part of the marketing mix for all products, took on more importance in the past 50 years. In a unanimous opinion, the appellate court wrote that "the government has assured substantial interests to be served by the do-not-call registry (privacy and consumer protection), the do-not-call registry will directly advance those interests by banning a substantial amount of unwanted telemarketing calls, and the regulation is narrowly tailored because its opt0in feature ensures that it does not restrict any speech directed at a willing listener. Use the following information. A. defined commercial speech. Way back in the 1800s, there were several giant businesses known as Trusts that controlled whole sections of the economy. Sometimes an advertiser doesn't want to sign a consent agreement. Instead, the FTC enforces the law, with help from the Justice Department and the FBI. Federal Trade Commission Act -partially insured The _____ was formed by three advertising associations and the Council of Better Business Bureaus to sustain high standards of truth, accuracy, morality and social responsibility in national advertising. Is this message false or misleading? b. Advertising . * The basis of the program is simple: The commission asks advertisers to substantiate claims made in their advertisements. There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. C. Electronic Retailing Agency. A. puffery There is a substantial state interest to justify the regulation. 2) The advertiser can agree to sign the agreement, but the commissioners reject it. A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____. SUMMARY: D. Lanham Act Today, an individual can file a complaint online from the FTC's website. [4230]+[wxyz]=[2305]\left[\begin{array}{rr} A. deceptive advertising. Cases brought to NARC are subject to more publicity as compared to the cases brought to a court. -protection of proceeds against the beneficiary's creditors C. is important to consumer and would likely have an effect on the purchase decision. Consent agreement 17. -existing producers -insured employee Solve the present value formula (5) for nnn. 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. A. These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. Making a claim without substantiation. D. Federal Trade Commission 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. Federal Trade Commission. C) It involves underpricing products so that companies make larger sales. An injunction is clearly a drastic remedy and one that the agency has said it will not use often. B. *National Advertising Review Board (NARB)*. 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. The FTC prohibits ___________________________, which it defines as "an alluring but insincere offer to sell a product to service which the advertiser in truth does not intend or want to sell. D. Advertising deregulation E. Federal Communication Reform Act. B. A. E. advertising substantiation. D. Fairness which law do all insurers and their producers need to comply with? Voluntary agreements by advertisers to terminate a deceptive advertisement D. Bureau of Alcohol, Tobacco, and Firearms -contributory 3. Bureau of Compliance C. Godiva claims that it makes the finest chocolates in the world. D. Federal Trade Commission Courts generally give less protection for commercial speech by lawyers than advertising publications C. avoid self-regulation. -What's happening now needs to stop immediately D. Trademark Improvements Act To avoid having this promotion classified as a lottery, Champion should: C. National Advertising Review Board D. is more stringently self-regulated than any other medium. Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? B. FTC Improvements Act WebRegulatory concerns never play a major role in the advertising decision-making process. C. affirmative disclosure C. not requiring consumers to make a purchase as a condition for entering. 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. regulation, restriction, and reconstruction. (c) How do we test a binary predictor for significance? Incorrectly implying that an endorser uses and advocates a brand. E. the FCC is granted the right to fine advertisers who exceeded advertising limits as defined by the act. Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. * Law greatly enlarged both the power and the jurisdiction of the FTC. Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. Which of the following statements describes the NAD/NARB review process? Postal Service regulations. Each violation of such an order may result in a civil penalty of up to $16,000. -total disability Federal Communications Commission Federal Communications Commission Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. Food and Drug Administration. In April 2013, the U.S. Supreme Court declined to hear the airlines' appeal in the case. Federal Trade Commission's (FTC's) _____ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. In brief, the majority of the court concluded that the beef advertising is the government's own speech and, as such, does not raise First Amendment problems. demonstrate full and truthful disclosures to the public. SUMMARY: As originally written, the law prevented only one advertiser from making false statements about his or her own goods. A. U.S. The federal Lanham Act was adopted more than 60 years ago by Congress to stop unfair competition in the marketplace. A. Lanham Act C. Bureau of Alcohol, Tobacco and Firearms 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. A. uses puffery. -divorced spouse of employee C. Department of Commerce (DOC) E. puffery, unethical. -protection of proceeds against the insured's and the beneficiary's creditors Trade regulation rules, guides & Child's Online Privacy Protection Act, FTC issues industry guides for a variety of products, services, and marketing practices. E. advertisers who do not want to be self-regulated. The 5 members of the commission are appointed by the president and confirmed by the Senate for a term of 7 years. In most cases they probably will not go to that expense. A. a commercial is rejected at the storyboard stage. C. refer the matter to an appropriate government agency. 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." A. order the company to stop running the ad. By July 2012, the FTC had brought a dozen enforcement cases targeting illegal robocalls, with violators paying $5.6 million in total fines. -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: Many areas of consumer and trade promotions are regulated by the _____ through the Marketing Practices Division of the Bureau of Consumer Protection. A. Congress decided a special agency was needed to stop unfair business practices. A. commercial speech. 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." The CAN-SPAM Act does not provide for a private legal cause of action or remedy for spam recipients. E. Wheeler-Lea Amendment, Under the _____ passed in 1991, telemarketers must follow a complex set of rules developed by the Federal Communications Commission. D. were made legally binding by the Robinson-Patman Act. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a C. any type of comparative advertising. Information Technology Act (ITA). -agents commission rate 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. Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. Web1) advertising must be truth and not misleading, with misleading ads sweeping up those in which relevant info is omitted, those that imply something that's not true and those in E. Network standards have become more stringent in response to competition from independent and cable stations. Is this message false or misleading? Self-regulation begins with the interaction of client and agency when: D. creative ideas are generated and submitted for consideration. * protects insured from insurance company insolvency. A chairperson, one of the 5 commissioners, is appointed by the president. A. 3. Magazines B) It can be profitably used when the product's quality and image support its price. -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 basic defense against any false advertising complaint is truththat 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 is it is advertised to be. The act or practice must be considered from the perspective of a consumer who is acting reasonably. -Consent agreement 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. -12 different locations across nation 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 A. B. * 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. *A new issue is the potential liability for Web sites such as Craigslist and Roommates.com for posting ads by other individuals who make statements that violate federal or state laws. The former phrase played a pivotal role in a case decided by the U.S. SUpreme Court in 2005. hire and fire management and select and appoint a chief executive. 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. Electronic Retailing Self-Regulation Program -shared C. coercion E. Substantiation, Under the _____ Doctrine, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. C. a cease-and-desist order. -Television networks had arbitrarily refused to air such commercials until urged to do so by the Federal Trade Commission, which suggested that such advertising would enhance the competitive nature of the marketplace. C. Cease-and-Desist In doing this, the advertiser makes no admission and the agency no determination that the claim is deceptive. Substantiation: D. a commercial is approved at the storyboard stage but then is rejected after it is produced. In 2012, a federal appellate court uhoeld a Department of Transporation rule affecting the price of tickets advertised by airlines. D. Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff. A. 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. 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. In fact, the FTC makes it clear that an agency has "a duty to ascertain the existence of substantiation for the claims which it makes." An exaggeration extended to the point of outright spoof that is obviously not true. C. consumers recognize puffery and don't believe it. A. Listerine. Most cases come to the attention of the agency from letters written by either consumers or competitors. It applies to "commercial electronic mail messages" that have as their "primary purpose" the "commercial advertisement or promotion of a commercial product or service." In an article on the CAN-SPAM Act, attorneys Glenn B. Manishin and Stephanie A. Joyce identify 5 specific components of the law: B. Finally, the commission has stated that when consumers can easily evaluate the product or service, when it is inexpensive, and when it is frequently purchased, the commission scrutinizes the advertisement or representation in a less critical manner. The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: C. selective retention. 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.
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