advertising regulations exist in order to quizlet

-protection of proceeds against the insured's and the beneficiary's creditors If advertisers make such claims, they are in violation of the law. B. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. A. a consent order. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? It may also regulate truthful advertising for lawful activities and goods if it can prove (1) there is a substantial state interest to justify the regulation, (2) that such regulation directly advances this interest, and (3)that there is a reasonable fit between the interest asserted and the governmental regulation. A. *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 commission evaluates the entire advertisement when examining it for misrepresentation. D. Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff. B. The case did not involve the just-discussed commercial speech from Central Hudson but, instead, addressed "whether a federal program that finances generic advertising to promote an agricultural product violates the First Amendment." Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. Ocean Spray Cranberry Juice. 3. C. Most FTC inquiries are settled by consent order. ) C. refer the matter to an appropriate government agency. E. Network standards have become more stringent in response to competition from independent and cable stations. [4230]+[wxyz]=[2305]\left[\begin{array}{rr} -policy owners from misrepresentations and loss of benefits Suggesting that a trivial difference is important. If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. Yes, as long as the disclosure requirments are reasonably related to the government's interest in preventing deception of consumers. *, *National Advertising Division (NAD)* A. order the company to stop running the ad. *Child Advertising Review Unit (CARU)*. -payor benefit Food and Drug Administration False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. C. Bureau of Alcohol, Tobacco and Firearms. Substantiation: The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes. 0 & 5 *10-Day Prohibition Period* D. Internet There is a "reasonable fit" means "narrowly tailored" which of the following statements is true? A. commercial speech. Which of the following statements about advertising by attorneys, dentists and physicians is true? These guidelines spring from a variety of concerns. E. The four major television networks. ) -terminated employee D. enticement -Litigated orders WebGovernment may regulate advertising that. 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. -conduct investigations -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. Which of the following statements is true about National Advertising Review Council (NARC)? 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. -covered employee is terminated for gross misconduct, a covered employee who is terminated for gross misconduct. A. d. adopted the principle of strict liability. 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. WebRegulatory concerns never play a major role in the advertising decision-making process. C. Bureau of Alcohol, Tobacco and Firearms 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. E. Affirmative disclosure. A. Wheeler-Lea Amendment -annuity's guaranteed interest rate 3. b. that harms the environment. Trade Regulation Rules: The Federal Trade Commission remains the nation's most potent weapon against false or misleading advertising. E. materiality, Under which of the following FTC programs might a firm be required to have product information verifying the veracity of its advertising claims before making any advertising claims about the product? Consent Decrees a policy-owner can receive an immediate payment before the insured dies by using a(n) which of the following are retained at the expenses of an insurance buyer to give advice on insurance needed by the buyer? In 2009 the FTC banned so-called robocalls (those annoying prerecorded commercial telemarketing calls to consumers) unless the telemarketing company has obtained written permission from a consumer to receive such calls. There was time when competition between businesses hardly existed. 3. A. A. Instead, the FTC's guides would be revised such that testimonials that do not depict typical consumer experiences should be accompanied by a clear and conspicuous disclosure of the results consumers can generally expect to achieve from the advertised product or program. C. puffery 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. B. Q. So, in 19114 the Clayton Act was put in place to stop them. Advertisers don't like the publicity that accompanies a charge of false advertising. The use of mock-ups and props to demonstrate visually a quality that is material to the sale of a product. B. selective exposure. E. Clayton Antitrust Act, The Bureau of Alcohol, Tobacco, and Firearms (BATF) is an agency within the ____. * In addition to such legal action, the FTC also educates consumers and businesses to encourage informed consumer choices, compliance with the law and public understanding of the competitive process. B. speech that promotes a commercial transaction. -Court said overbroad and law shut down 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. which of the following is CORRECT regarding the death benefit amount? Federal Communications Commission A. an unfair claim. C. Bureau of Alcohol, Tobacco and Firearms 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. Trade regulation rules have had a great deterrent effect, as they comprehensively delimit what constitutes an illegal practice. -Guides and the Child Online Privacy Protection Act E. Federal Communication Reform Act. 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. Telephone Consumer Protection Act of 1991. E. Central Hudson, The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices including those in advertising. 30. a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. Because the agency was created under the authority of Congress to regulate interstate commerce, products or services must be sold in interstate commerce or the advertising medium must be somehow affected by interstate commerce before the FTC can intervene. The FTC contended that the registry, which is a list containing the personal telephone numbers of telephone subscribers who have voluntarily indicated that they do not wish to receive unsolicited calls from commercial telemarketers, was necessary to reduce both intrusions upon consumer privacy in the home and the risk of fraudulent or abusive solicitations from telemarketers. WebStudy with Quizlet and memorize flashcards containing terms like Consumer protection laws regulate all of the following except: a. unfair trade practices. No. The act or practice must be considered from the perspective of a "reasonable consumer." -is only available to insurance companies This agency was responsible for putting warning labels on alcoholic beverage advertising and 2. 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." FTC initiated this in 2003 that allows people to block the calls of telemarketers. D. Distilled Spirits Council. More part of the new law is that the endorsers may also be subject to liability for their statements. -Voluntary compliance -is not available to the public Cases brought to NARC are subject to more publicity as compared to the cases brought to a court. 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. E. advertisers, government, and the television networks. _________________________: Spam senders are barred from transmitting commercial e-mail messages to any recipient after 10 business days following the exercise by the recipient of his or her right to opt out of future commercial e-mail messages. -Interstate commerce - anything that involves commerce between 2 states -home address There B. deception The new law expanded the jurisdiction to practice "affecting commerce." 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. BBB stands for: Better Business Bureaus provide control over advertising practices at a _____ level while the Council of Better Business Bureaus plays a major role in controlling advertising practices at a(n) _____ level. Does this message injure the plaintiff? agreed, observing that the adult struggles to attain intimacy and The long-standing legal doctrine is that the First Amendment is not even implicated; such a situation is one private entity, the mass medium, refusing to do business with another private entity. 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. Refusing to sign the agreement will result in litigation and publicity. C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. E. Trade Regulation Bureau, The _____ is the division of the Federal Trade Commission that is responsible for investigating cases involving deceptive or misleading advertising. 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." B. is regulated through codes developed and enforced by the Federal Trade Commission. A. But if the commissioners support an administrative law judge's ruling against an advertiser, the order becomes law after it is finalized by an appellate court. 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. In addition, consumer reaction to the charges often results in list sales as well. An exaggeration extended to the point of outright spoof that is obviously not true. b. Most states today have such laws. Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. 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. Ads can't be unfair, meaning the advertisement can't cause substantial injury to consumers that consumers 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. E. Independent Business Alliance, D. Electronic Retailing Self-Regulation Program. -receive matching funds to expand public assistance programs Voluntary agreements by advertisers to terminate a deceptive advertisement III only. D. Fairness In other words, the creators of ads should be wary of creating false implications. -protection of proceeds against the beneficiary's creditors If the advertiser loses this final appeal before the commissioners, he or she can appeal the litigated order in federal court. In 1938 Congress adopted the Wheeler-Lea Amendment to the Trade Commission Act, which gave the FTC the power to proceed against all unfair and deceptive acts or practices in commerce, regardless of whether they affect competition. Federal Communications Commission In dealing with false advertising, the FTC's greatest enemy is the time needed to bring an action against an advertiser. D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. Complaints against advertisers are prepared by the FTC staff and approved by a vote of the commission. If the staff members believe there is a provable violation, then a proposed complaint, a proposed consent agreement, and a memorandum are prepared for the commissioners. C. the findings of marketing research studies. what amount will be paid under a policy where the insured misstated his/her age? B. D. is more stringently self-regulated than any other medium. The agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. The good news for consumers is that they sometimes get part of their money back. A variety of federal agencies are empowered to enforce consumer protection laws. Three major divisions of the Federal Trade Commission are the Bureaus of: C. contradictory option -may raise premiums at anytime SUMMARY: C. Electronic Retailing Agency. B. Centre for Electronic Technology. Food and Drug Administration. Bait-and-switch advertising. The Magnuson-Moss Act of 1975: (a) What is a binary predictor? C. regulation, restriction, and reconstruction. Information pertaining to the "central characteristics of the product or service" is usually considered to be material. B. provides for the review and evaluation of all child-directed advertising. According to the Federal Trade Commission _____ exists 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. Although the agency is located Washington D.C., it had 11 regional offices throughout the nation. 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. Electronic Retailing Self-Regulation Program (ERSP). C. The Wheeler-Lea Amendment The FTC was created by Congress in 1914 to police unfair methods of business competition. 1. The students had a right, in other words, to not speak. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. The law originally required consumers to re-register their numbers every 5 years to remain on the registry. In particular, several telemarketing agencies filed lawsuits in 2003 against the FTC, alleging that it was beyond the scope of the FTC's jurisdiction to adopt the National Do Not Call Registry and claiming that the registry violated the First Amendment right of free speech of advertisers who use telemarketing. -What's happening now needs to stop immediately D. were made legally binding by the Robinson-Patman Act. As a discipline, marketing is not affected by things that occur outside of the firm's control. C. a commercial is rejected for reasons such as sex and politics. false According to deontological thinker Kant: I. C. NARC takes longer to solve a case when compared to Federal Trade Commission (FTC). C. Wheeler-Lea Amendment C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification. It has its own standards of practice and creative code. d. generativity. 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. WebThe Telephone Disclosure and Dispute Resolution Act of 1992 requires FTC to promulgate regulations concerning advertising for, operation of, and billing and collection procedures for, pay-per-call or "900 number" telephone services.The regulations must include certain provisions, such as price disclosure requirements, mandatory warnings on services C. National Advertising Review Board E. remuneration. Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: Information has also been found to be material where it concerns the purpose, efficacy or cost of the product or service. w & x \\ To implement this provision, the FTC in 2004 adopted a rule requiring spammers who send sexually oriented material to include the warning "SEXUALLY-EXPLICIT:" in the e-mail subject line or face fines for violations of federal law. Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? Corrective Advertising: B. *1. 3. Erikson is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. The guides are of great benefit, however, to honest advertisers who seek to stay within the boundaries of what is allowable under the law. * -Plaintiffs in Lanham Act cases had traditionally sought only to stop the competitor's advertising claims. B. governance, compliance, and cooperation. Voluntary compliance -the court held it went against First Amendment E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? A. Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. 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. Spam also represents an economically efficient and inexpensive way of marketing one's product or service. A. Federal Communications Commission. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. D. limits on the amount of television advertising per hour targeted to children are eliminated. D. Federal Trade Commission -There was no substantial state interest. Circuit Court of Appeals held that Craiglist was protected from liability by Section 230 of the Communications Decency Act (CDA) after it posted rental ads with discriminatory statements such as "no minorities" and "no children" that violate the federal Fair Housing Act. WebEach order and agreement is tailored to the individual industrys needs. In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. American advertising is regulated by laws adopted by all levels of government. The 2nd aspect of the law that improved FTC remedies allowed the FTC to seek civil penalties against anyone who knowingly violates the provisions of a litigated order, even if that person was not originally the subject of the order. The judge works within the FTC and officiates at these hearings. The act or practice must be considered from the perspective of a consumer who is acting reasonably. -keep replacement records on file for at least 10 years Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. A. materiality. A. (The importance of this power alone cannot be overestimated. A. C. consumers recognize puffery and don't believe it. The new law permits state and local governments to: D. Wheeler-Lea Amendment Misleading comparative claims. FTC's rules against deceptive advertising (2 components), 1) 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 which any disclaimers are not clear and not prominent enough for reasonable consumers to see, hear, and understand them 2) 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. an employee under a group insurance policy has the right to name a beneficiary and the right to convert to an individual policy in the event of employment termination, HIPAA considers which of the following as Which of the following is the best example of the use of puffery in advertising? lessons from surah al qariah,

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