1. Which of the following statements about advertising by attorneys, dentists and physicians is true? D. corrective advertising. Lawsuits for false advertising claims were relatively rare until the last quarter of the 20th century. E. injunction. The FTC believes that the claim is deceptive. Misleading comparative claims. A. Deception E. selective disclosure, As per FTC, _____ occurs when qualifying information necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed. C. if the ad uses puffery. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? C. Most FTC inquiries are settled by consent order. ) Endorsements must reflect honest opinions, findings, beliefs or experiences of the endorser. An exaggeration extended to the point of outright spoof that is obviously not true. WebWhich of the following industries are significantly influenced by laws regulating product purity and labeling? protects insured from insurance company insolvency. These trusts were monopolies; they combined all competition into one company so they could control the price. A. A. 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. D. Bureau of Consumer Protection c. competence. Guides and the Child Online Privacy : C. refer the matter to an appropriate government agency. B. implied uniqueness Sometimes an advertiser doesn't want to sign a consent agreement. The Magnuson-Moss Act of 1975: WebAn agency relationship exists when one person, the _____ acts for, or on the behalf of another person, the _____. D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. B. In either case, the losing side can appeal to the federal trade commissioners for a final ruling. 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. A. require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. B. puffery. A television station won't advertise a sporting event that will be telecast on a competing channel. 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: The students had a right, in other words, to not speak. 2. They would, instead, rather spend their own money on distictinve advertising for a particular niche or premium variety of beef, such as organizally fed. E. contests and sweepstakes, Marketers' use of trade allowances is controlled by the ____, which prohibits price discrimination. Staff attorneys at the FTC will issue a complaint against the advertiser, and a hearing will be held before an administrative law judge. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. 2. D. NARC can handle cases at lower cost as compared to a court. D. Wheeler-Lea Amendment This requirement falls under the FTC's _____ requirement. The advertiser can refuse to sign the agreement. * It is only acceptable to lie when done to protect an innocent person. is using ____, which is a(n) ______ form of advertising. "acting reasonably in the circumstances" By December 2013, the Do Not Call Registry included more than 223 million active phone numbers, including both landline and wireless phones. E. an illegal comparative advertisement. -insured A. ad substantiation -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. B. superiority advocacy. 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. -may cancel the policy only at renewal (The importance of this power alone cannot be overestimated. 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. B) It can be profitably used when the product's quality and image support its price. WebList the 7 primary government agencies regulating advertising and their area of advertising regulation. A. within one month of the appearance of the ad. period of time after the premium is due but the policy remains in force. There must be a representation, omission or practice that is likely to mislead the consumer* The case goes to an appellate court, and there is no new finding of fact: What the FTC says is fact, is fact. It is also important to remember that an ad may mislead because it omits material information. In general, advertisements of alcoholic products must be truthful and without deception. WebA life insurable policy's advertising material MUST contain all of the following information EXCEPT: Agent's commission. C. selective retention c. permitted consumers to sue the retailer from whom they had purchased the product. In addition to the national registry, courts have upheld state do-not-call registries, paying favorable attention to the voluntary "opt-in" nature of the state laws (in other words, the registries apply only to individuals who sign up for them, rather than automatically applying to everyone). 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. The regulation of deceptive or untruthful advertising is a large and difficult task policed by the advertising industry itself, the mass media and various governmental agencies. D. before the ad appears. A. It is very expensive to get a case solved through NARC. C. Comparative advertising -does not include political calls or spam artists E. National Association of Broadcasters. C. Cease-and-Desist *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. D. misrepresentation -covered employee is terminated for gross misconduct, a covered employee who is terminated for gross misconduct. b. identity. The representation, omission or practice must be material. In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. -frequency of the premium payment the New Jersey Temporary Disability Benefits Law. provides non-occupational disability benefits. james is the insured on a life insurance policy where his age was misstated on the application. Media can refuse to accept or restrict the timing of ads that violate standards of truth or good taste. * 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. B. affirmative disclosure WebMost direct influence has been on regulation of advertising for alcoholic beverages. Cease-and-Desist Orders FTC Definition of False or Deceptive Advertising: The most commonly used FTC remedy is the consent agreement, or _____________________________. C. First-Amendment Analysis C. not requiring consumers to make a purchase as a condition for entering. B. if the ad does not provide sufficient information to the consumers so as to make an informed decision. Ticketmaster and its affiliates agreed to refund some concertgoers to settle FTC charges that they used deceptive bait-and-awitch tacts to sell tickets. E. advertising substantiation. E. Federal Express advertises guaranteed overnight delivery service. -whether a spokesperson is paid. Misinterpretation During fiscal year 2013, the FTC received more than 3.7 million complaints regarding alleged violations of the registry, down from about 3.8 million in 2012. Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. 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. Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. E. avoid questionable advocacy advertising. B. All broadcasting stations are considered to affect interstate commerce. The company must conduct careful studies to provide support for the claim because: * 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. spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. The Better Business Bureau guidelines *Attorneys for the FTC can seek these restraining orders in federal court. D. Presence of puffery in the advertisement D. Fairness -never protection of proceeds, there is protection of proceeds against the insured's and the beneficiary's creditors, which of the following is MANDATORY coverage for all group health care service contracts? -no interest will be charged on loan balance 4 & -2 \\ B. First anti-trust law was passed in 1890: the Sherman Act. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. If an advertiser disagrees with a NAD or CARU decision, it can appeal to the _______________________________. It's What's for Dinner" and "Got Milk?" -If an ad represents that an endorser uses the product, then the endorser must have been a bona fide user of it at the time the endorsement was given and, in addition, the advertiser may continue to run the ad only so long as it has good reason to believe that the endorser remains a user of this product. In 2010, the FTC went after a high-tech form of bait-and-switch advertising when it settled charges that Ticketmaster and its affiliates used deceptive bait-and-switch tactics to sell concert tickets to consumers. Within how many days must a producer notify the department of banking and insurance of a change in address? Finally, in 2012, the FTC offered this sage but simple piece of advice to anyone receiving a robocall: "Hang uo the phone. B. The law is not designed to protect the foolish or the "feeble minded," the commission has noted. (c) How do we test a binary predictor for significance? E. Central Hudson, The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices including those in advertising. E. the advertising relies on the use of puffery to make its point. *10-Day Prohibition Period* B. is regulated through codes developed and enforced by the Federal Trade Commission. Vision Council of America A. misleading omission 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. WebI. The National Advertising Division and the Child Advertising Review Unit, divisions within the Better Business Bureau, are the primary agents for this self-regulation. This agency was responsible for putting warning labels on alcoholic beverage advertising and Today, an individual can file a complaint online from the FTC's website. Corrective Advertising *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. *Functioning Return Address and Opt-Out Mechanism* A. FTC Act -FTC regulates spam Federal Trade Commission Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. Falsely implying that a benefit is needed. Rarely have these challenges been successful. The new law permits state and local governments to: Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. Determining what constitutes commercial speech, however, is not easy. 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." Chevron contended its products were just as good as Texaco's. what kind of rider is this? -Stricter than the guide; actual rules; FTC does not tend to investigate certain issues; competitors or consumers usually are the ones to bring it to the FTC, Testimonials: "individually identifiable health information" ? D. Federal Trade Commission False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. C. is regulated by affiliates.

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