advertising regulations exist in order to quizlet

In this case the commission can issue an order, usually called a *litigated order,* to stop the particular advertising claim. continued coverage under COBRA would be provided to all of the following EXCEPT The Federal Trade Commission (FTC) defines _____ as an express or implied statement contrary to fact. after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? In most cases they probably will not go to that expense. WebSection 18 of the FTC Act, 15 U.S.C. -Corrective Advertising Trade Regulations Rules: -terminated employee A. B. Which type of life insurance policy is this? E. comparative 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. D. is concerned with the misrepresentation of premiums when used in sales promotions. Quizlet Another word for advertisement is _____________________. B. refer the case to an industry trade association. D. Food and Drug Administration 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. C. Comparative advertising Laws Self-regulation begins with the interaction of client and agency when: D. creative ideas are generated and submitted for consideration. Almost anyone who has watched television advertisements during the past decade or so is familiar with trademarked slogans such as "Beef. B. E. noncompetitive 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. Newspapers, magazines, broadcasting stations, online service providers and other mass media all have rules that regulate the kind of advertising they carry. A. an unfair claim. 2. -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. Most cases come to the attention of the agency from letters written by either consumers or competitors. B. -Voluntary compliance *2. D. economics, consumer protection, and competition, Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? "individually identifiable health information" ? E. Federal Communication Reform Act. In summary, competitor-versus-competitor lawsuits are now common. A. FTC Act C. Federal Communications Commission 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. D. National Association of Broadcasters It is very expensive to get a case solved through NARC. Courts generally give less protection for commercial speech by lawyers than advertising publications Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? D. Superlatives such as greatest, best, and finest are puffs that are often used in 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. 1. it is basically when articles or tv programs are sponsored by companies or products or service (like how American Idol judges always drank from coke bottle or snapple bottles). A. unsolicited order B. creative boutiques, copywriters, and consumers. -name Under the FTC's rules, several key points emerge that must be understood: B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. (b) Why is a binary predictor sometimes called a "shift variable"? A very frustrating, and often expensive, scenario for both an agency and its client occurs when: It's What's for Dinner" campaign. D. Bureau of Reconstruction C. Robinson Patman Act Food and Drug Administration E. Network standards have become more stringent in response to competition from independent and cable stations. The act or practice must be considered from the perspective of a consumer who is acting reasonably. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. -does not include political calls or spam artists Central Hudson Test C. The division of Marketing Practices C. puffery legitimization C. affirmative disclosure -person's employment history 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. All TV viewers have seen famous athletes and celebrities, as well as experts and ordinary consumers, on commercials making claims abut products they supposedly use or in which they otherwise believe. When an advertisement conveys more than one meaning to a reasonable consumer, one of which is false, the seller is liable for the misleading interpretation. WebI. Remedies for deceptive and unfair advertising, Require Substantiation The origin of the Federal Trade Commission's corrective advertising program came from a deceptive advertising case involving: The good news for consumers is that they sometimes get part of their money back. One commissioner is chosen by the president to be the chairman of the FTC. Typically the advertising campaign is already over. A. Virginia Consumer Council Test D. Vision Council of America Advertising Practices found to be unfair or deceptive 3. B. The _____________________________ is why commercial speech gets First Amendment protection (in chapter 2), ____________________ in _______ - made it a misdemeanor for a publication for advertising for an abortion (a weekly magazine gave a doctor's name to schedule an abortion For some specialized products or services, additional rules may apply. Vision Council of America Worked, however, some companies then decided to just merge together. D. corrective advertising. Laws must be static and unyielding in order to provide stability for a society. D. an advertisement has the potential to mislead an unsophisticated consumer. Chapter 20 Regulation of Advertising and Promotion - Quizlet Federal Trade Commission -is only available to insurance companies Advertising . E. Consent orders lead to excessive adverse publicity. 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. 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." *A First Amendment right not to be compelled by the government to speak has been recognized by the Supreme Court in some situations. Which of the following statements is TRUE? 44.1 Advertising, Marketing, and Sales Flashcards | Quizlet E. dealt with consumers' rights regarding product warranties. B. offer only merchandise and no cash as part of the sweepstakes prizes. A. enhance the credibility of the publication. In addition, the FTC made it clear that the "opt-out" mechanism, used by a commercial sender cannot require a recipient to take any steps other than sending a reply e-mail message or visiting a single Internet Web page to opt out of receiving future e-mail from that sender. D. false substitution WebFederal Regulators of Advertising -Federal Communications Commission -Food and Drug Administration -US Postal Service -Bureau of Alcohol, Tobacco and Firearms -Federal Trade Commission Federal Trade Commission Jurisdiction Responsible for regulating unfair the role of the federal government was expanded when Medicaid was established by allowing the state to The issue of truth and deception in such ads gained both public and congressional attention in 2008 when Pfizer, Inc. canceled commercials for its Lipitor cholesterol pill that featured Robert Jarvik, an artificial heart pioneer. In addition, consumer reaction to the charges often results in list sales as well. Marketing Orders B. is regulated through codes developed and enforced by the Federal Trade Commission. Ads that promote illegal goods and services, that contain claims that appear to be deceptive or are not substantiated, or that unfairly trash a competitor's products might also be ___________. -5 commissioners, appointed by the President, including the chair man -dental care. E. consumers believe in puffery. 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. In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. As a discipline, marketing is not affected by things that occur outside of the firm's control. If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. WebThe Louisiana Life and Health Insurance Guaranty Association. 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. B. B. d. adopted the principle of strict liability. If this happens the order is published and made final in 60 days. D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. B. Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: Spam also represents an economically efficient and inexpensive way of marketing one's product or service. WebAdvertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. A. within one month of the appearance of the ad. B. Lanham Act Media can refuse to accept or restrict the timing of ads that violate standards of truth or good taste. -47% of the time people can't tell it is native advertising D. any advertising on a broadcast media. period of time after the premium is due but the policy remains in force. A promotion such as a contest or sweepstakes can avoid being considered a lottery or form of gambling by: E. the consumers may sue the company for non substantiation of the ad. Quizlet Ticketmaster and its affiliates agreed to refund some concertgoers to settle FTC charges that they used deceptive bait-and-awitch tacts to sell tickets. 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. which of the following is CORRECT regarding the death benefit amount? -substantial interest in maintaining the rights of consumer privacy 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. D. Electronic Retailing Self-Regulation Program (ERSP). What's more, the FTC made sure in 2012 that more than 477,000 consumers received monetary redress totaling $26.8 million. Federal Trade Commission -But judges have said past facts can be misleading, It's not nearly as easy to prove "substantial state interest" in commercial speech than porn and obscenity. *Child Advertising Review Unit (CARU)*. Such claims are referred to as _________________ and include representations that a store sells "the most fashionable shoes in town" or a cola drink is "the most refreshing drink around." D. Trademark Improvements Act This agency was responsible for putting warning labels on alcoholic beverage advertising and expression related solely to the economic interest of the speaker and its audience, or proposes a commercial transaction. the death benefit paid will be what the premium would have been purchased at the correct age, a 10% excise tax is normally applied to an early withdrawal from an IRA. C. there has been material injury to reasonable consumers. Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. 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. B. E. advertising substantiation. A. 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. D. discounts *Considerable pressure is placed on the advertiser to agree to a consent order. A. a consent order. 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. Most commercials once rejected cannot be rerun. WebRegulatory concerns never play a major role in the advertising decision-making process. Central Bank advertises free checking with a minimum balance of $1,000. 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." Trade regulation rules, guides & Child's Online Privacy Protection Act, FTC issues industry guides for a variety of products, services, and marketing practices. E. Information Technology Act. For instance, in the seminl 1943 opinion in West Virginia Board of Education v. Barnette, the court held that children in public schools could not be forced or compelled to recite the Pledge of Allegiance or salute the American flag. C. is important to consumer and would likely have an effect on the purchase decision. 5. Which of the following programs is more likely to be the most controversial of all the Federal Trade Commission's programs? which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? -issue subpoenas E. Consumer Protection Act, The _____ gave the FTC the power to issue cease-and-desist orders and levy fines on violators. A. D. misleading omission Under this policy, express substantiation claims, such as "doctors recommend" and "specific tests prove," require the level of proof advertised. The law originally required consumers to re-register their numbers every 5 years to remain on the registry. Postal Service Information Technology Act (ITA). b. The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are: Cease-and-desist orders: To avoid having this promotion classified as a lottery, Champion should: Food and Drug Administration If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB. What is the role of the leader and follower in the leadership process? D. Puffery If the advertiser has had a good record in the past and if the offense is not too great, the company can voluntarily agree to terminate the advertisement and never use the claim again. Since the early 1980s the corrective advertising sanction has been used sparingly by the agency. Rarely have these challenges been successful. A. advertisers, creatives, and the cable operators. 1. \end{array}\right] An advertising message that consumers are likely to believe reflects the opinions, beliefs, findings or experience of a party other than the sponsoring advertiser. A. Whereas commercial speech typically receives limited First Amendment protection. 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. 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. In other words, the Livestock Marketing Association and the other plaintiff in the case objected to the fact that they were compelled to subsidized speech-the generic beef advertising campaign-to which they objected. In addition to the informal sanction of publicity, the FTC has a wide range of remedies to deal with advertising: C. Puffery legitimization 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. Ad substantiation D. advertising deregulation Department of Foreign Affairs Freedom of using any media vehicle 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. 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. D. Wheeler-Lea Amendment FTC Tools or Remedies to Stop False Advertising: So, in 19114 the Clayton Act was put in place to stop them. E. lodge a class action suit for customers who have been in some way negatively affected by the ad. C. the findings of marketing research studies. Postal Service. Injunctions: A. Voluntary agreements by advertisers to terminate a deceptive advertisement C. Lanham Act -guaranteed benefit A. the fairness doctrine. E. Promotional Products Marketing Association. 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. B. implied uniqueness 3. Which of the following statements about self - regulation by media is true? 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 ____. It is difficult for courts to reverse an FTC ruling. -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 *Accurate information in the text may not remedy a false headline. American advertising is regulated by laws adopted by all levels of government. B. E. National Association of Broadcasters. 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. It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. Solve the present value formula (5) for nnn. C. refer the matter to an appropriate government agency. WebMost direct influence has been on regulation of advertising for alcoholic beverages. Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. Food and Drug Administration. E. Trade Regulation Act. The FTC believes that the claim is deceptive. If a participant is required to give up something of value in order to participate in a game or sweepstakes, then _____ is present, and the promotion is considered a lottery. c. competence. Which of the following statements about a consent order is true? An advertiser who says that his product is the "best," "greatest," etc. There is a substantial state interest to justify the regulation. Bait-and-switch advertising. D. California Test of Affirmation -There was no substantial state interest. If the judge believes that there is substantial evidence that the advertisement violates the law, he or she will issue an order telling the advertiser to stop this illegal practice (this is the litigated order). Using an ambiguous or easily confused phrase. D. Television is the most carefully scrutinized of all forms of advertising. Does the FTC regulate all advertising? Within how many days must a producer notify the department of banking and insurance of a change in address? 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? Chapter #19: Louisiana Laws and Rules Flashcards | Quizlet D. Most advertising cases investigated by the NAD are resolved without being sent to the NARB. B. Robinson Patman Act *Consumers, as opposed to competitors, have a much more difficult time in maintaining an action for false advertising. 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. -policy owners D. Fairness C. Bureau of Alcohol, Tobacco and Firearms C. Cease-and-Desist Section 43(a) creates a legal cause of action for false advertising. The test is whether the consumer's interpretation or reaction is reasonable. -policy owners from misrepresentations and loss of benefits C. trade allowances C. an illegal deception. -Legally, no, it cannot. 3. -insurance company, an insured's status under social security can be described as.. D. advertisers, agencies, and the media. A. E. Food and Drug Administration, In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ broad jurisdiction to regulate the advertising of cigarettes and smokeless tobacco. E. requiring the consumer to pay a consideration. 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. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. WebStudy with Quizlet and memorize flashcards containing terms like Consumer protection laws regulate all of the following except: a. unfair trade practices. D. Most media accept any advertising they receive since advertising is their major source of revenue. -is not available to the public But Congress amended the act in 1989, and now the law also prohibits an advertiser from making false claims about a competitor's product as well. Marketing Agreements are only binding for those handlers that sign the agreement. An investigation into the lengths of celery sticks grown in a certain US state. 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. advertising regulations exist in order to? Unfairness b. adopted the principle of caveat emptor. E. affirmative disclosure. The National Advertising Division and the Child Advertising Review Unit, divisions within the Better Business Bureau, are the primary agents for this self-regulation. -guaranteed insurability rider, the commissioner may C. Bureau of Alcohol, Tobacco and Firearms. (The importance of this power alone cannot be overestimated. In other words, commercials should makes ear what the typical results are (an, of course, have prior substantiation for such claims); merely stating that the results of the endorser are not typical will not cut it. Consent agreements or consent orders signed by advertisers promising to terminate a deceptive advertsiement He drives every day and never drives the same car two days in a row. C. puffery; illegal tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. *There are only a handful of reasons that a judge can use to overturn the commission decision. E. are issued by the National Association of Attorneys General. E. Advertising substantiation. 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. 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. Postal Service -3 & 0 -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. C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification. Chapter 20: Regulation of Advertising and Promotion [4320]+[wyxz]=[2035]. "likely to mislead the consumer" Upon request. A. Wheeler-Lea Amendment D. run the promotion only in the state where the Super Bowl is being held. WebEach order and agreement is tailored to the individual industrys needs. Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. Consent agreement Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". E. Central Hudson, The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices including those in advertising. Under the corrective advertising scheme, the FTC forces the advertiser to inform the public that in the past it has not been honest or has been misleading. Antitrust Laws -joint (c) How do we test a binary predictor for significance? A. 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. -indemnity The advertiser may appeal this decision in a federal court. Erikson A. 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. -receive matching funds to expand public assistance programs Prohibits any false descriptions or representations of a brand (yours or someone else's), including words or other symbols tending falsely to describe or represent the same. C. selective retention 3) The advertiser can refuse to sign the agreement. C. Consumer Protection That obviously can add up very fast. The FTC does not presume that the claims are false or misleading. Inquizitive: Chapter 12: Monopolistic Competition Uder the terms of the CAN-SPAM Act, each separate e-mail in violation of the law is subject to penalties of up to $________________, and more than one person may be held responsible for violations. -fully insured E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? B. A. previous advertising has led to the formation of false beliefs about a product. C. ad substantiation agreement -conduct investigations B. Bureau of Economics True (Firms in monopolistically competitive markets invest in advertising more than firms in other markets. D. affirmative disclosure Trade regulation rules that can be issued to regulate advertising throughout an entire industry. a. affiliation. The advertiser can refuse to sign the agreement. A. Puffery is illegal. In 2004 the U.S. Court of Appeals for the 10th Circuit upheld the National Do not Call Registry in Mainstream Marketing Services, Inc. v. Federal Trade Commission. How many ads are in your general vicinity each day? C. Affirmative Disclosure -presumtive disability For example, an advertiser can argue that the deceptive statement is not material to the advertisement as a whole (that is, it will not influence the purchasing decision) or that the advertisement does not imply what the government thinks it implies.

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