Also, the time factor works in the advertiser's favor. C. refer the matter to an appropriate government agency. C. U. S. Postal Service Will you buy the book? Which of the following statements about advertising by attorneys, dentists and physicians is true? permitted consumers to sue manufacturers with whom they had no contractual relationships. C. Affirmative Disclosure -the court held it went against First Amendment C. FCC Act D. Wheeler-Lea 2. The challenge wad filed with NAD by a competitor of Gillette, namely Schick, which makes "Intuition Plus" razors. In addition, the matter in the spam e-mail message that is initially viewable when it is opened cannot include any sexually oriented material. Corrective Advertising: As originally written, the law prevented only one advertiser from making false statements about his or her own goods. Falsely implying that a benefit is needed. B. a commercial that was rejected at the storyboard stage is accepted at the final stage. c. secured Since the early 1980s the corrective advertising sanction has been used sparingly by the agency. -policy owner -to tell them what they can and can't do D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. Children If you advertise directly to children or market kid-related products to their parents, its important to comply with truth-in-advertising standards. after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? In 2008 legislation was signed under which numbers placed on the list remain on it permanently unless consumers specifically request a number's removal by calling 1-800-382-1222. The test is whether the consumer's interpretation or reaction is reasonable. -beneficiary, replacement regulation is designed to protect -may raise premiums at anytime 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. In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. 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. E. distribution, distillation, and diversity. Does this message injure the plaintiff? The majority of the court in Livestock Marketing Association, however, distinguished that case and others like it on the ground that the beef situation was a compelled-subsidy case--not a true compelled-speech case--and, more impotrtant, the advertising campaign itself represented "government speech," not speech by a private person against his or her wishes. E. dealt with consumers' rights regarding product warranties. -terminated employee Pr(\operatorname{Pr}(Pr( Audi after VW) =0.8Pr(=0.8 \quad \operatorname{Pr}(=0.8Pr( Ford after VW)=0.2\mathrm{VW})=0.2VW)=0.2. A. * E. Federal Communication Reform Act. 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. A. Deception II. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. D. run the promotion only in the state where the Super Bowl is being held. Which of the following statements is true about National Advertising Review Council (NARC)? E. advertising substantiation. The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. Suggesting that a trivial difference is important. Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. Food and Drug Administration Bureau of Compliance The appellate court, however, rejected the unerinclusiveness argument, writing that "First Amendment challenges based on under inclusiveness face an uphill battle in the commercial specs context. Cease-and-desist orders: A. defined commercial speech. *Corrective Advertising*is a highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient. 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. No. "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. B. The burden is on the government to disprove the advertiser's claim. In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. SURVEY . E. speech governed by the First Amendment to the U.S. Constitution. The law also gave the agency important new power. Postal Service People who work in advertising must be aware of such rules as well as all other regulations (libel, invasion of privacy, obscenity) that restrict the content and flow of printed and broadcast material. Critics of the FTC's ad substantiation program argue that: While the front panel of the box showed it contained no trans fat, it failed to include a disclosure statement to alert consumers that the product nonetheless has significant levels of both saturated fat and total fat, thus violating the federal Food, Drug, and Cosmetica Act. 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. Falsely implying that a test is scientifically conducted. WebSection 18 of the FTC Act, 15 U.S.C. Weba. C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. *2. Twisting is best defined as. In general, advertisements of alcoholic products must be truthful and without deception. One of the most pervasive and annoying forms of advertising today is on the ________________. As a discipline, marketing is not affected by things that occur outside of the firm's control. In the actual implementation and application of the 2 critical components of the FTC's rules against deceptive advertising, 3 key considerations emerge that are set forth: FTC Definition of False or Deceptive Advertising: A. E. dealt with consumers' rights regarding product warranties. An entire industry can be treated similarly, and just one or two businesses are not picked out for complaint. -What's happening now needs to stop immediately A. B. puffery has detrimental effect on consumers' purchase decisions. d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. what kind of rider is this? B. Erikson A. cease-and-desist order an insurance company needs to obtain personal information from a third party concerning an applicant. -brokers and consultants More part of the new law is that the endorsers may also be subject to liability for their statements. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. -may cancel the policy only at renewal 1) Federal Trade Commission (FTC) (most active) controls unfair methods of C. The media can refuse to accept individual ads they find offensive or objectionable. Weba. 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 ___________. B. The FTC does not attempt to scrutinize every advertisement that is published or broadcast. C. selective retention B. affirmative disclosure 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. A. commercial speech. -waiting period 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 A. misinterpretation E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? 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." -partially insured "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. E. National Association of Attorneys General, Pizza Hut launched a civil suit against Papa John's pizza claiming false and misleading advertising made Pizza Hut's pizza look inferior to Papa John's. B. -shared B. D. discounts The commissioners then vote on whether to issue a complaint. Admisnitrative law judges can hold hearings, which are somewhat like trials, to determine whether the FTC charges are valid. 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." 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. But if time is the greatest enemy, publicity is the FTC's strongest ally. who is able to love and work. -$300,000 D. an affirmative disclosure. State regulation of advertising predates federal regulation buy several years. -form a large PPO on a statewide level The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes. In addition, political robocalls--a major source of annoyance for many during the 2012 election year--and robocalls from charities seeking donations are permissible. 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. B. advertisers so that they can sue media for not providing them with the promised reach and frequency. Advertising on television and radio was regulated for many years through codes developed by the _____ until the courts found some of its regulations served to restrain trade. -Corrective Advertising Omitting a needed qualification. ____, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. E. is experiencing a tightening of the rules concerning the rating system used for commercials. A. U.S. Can the government, in the name of protecting against consumer deception, compel companies to include certain facts in ads they might not otehrwise want to disclose? C. Cease-and-Desist -set sales quota 1. A. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. 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. For a long time, advertising was ______ protected by the First Amendment. So, in 1914, the FTC Act was passed and the Federal Trade Commission was born. B. *National Advertising Review Board (NARB)*. A. consumers cannot distinguish between factual information and puffery. Deceptive advertising For instance, in 2010 the FDA issued a warning letter to Dreyers Grand Ice Cream regarding the labeling off its Nestle Drumstick Classic Vanilla Fudge Product. The U.S. Supreme Court turned back a challenge to the appellate court's ruling, thus bringing an end (at least for the time being) to telemarketers' efforts to invoke free speech arguments to have the popular ban on unwanted phone solicitations declared unconstitutional. -name E. Advertisers who do not comply with the NAD/NARB review process will find themselves encumbered with a class action lawsuit. D. advertisers, agencies, and the media. A. They are: 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). Implied uniqueness A. within one month of the appearance of the ad. Federal Communications Commission 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. 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? Industry guides apply only to prospective advertising campaigns, events that have not yet occurred. E. National Association of Broadcasters, C. American Association of Advertising Agencies. -only includes calls about goods or services -$200,000, which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. It is very difficult for non competitors to gain standing to sue for false advertising under the Landham Act. the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the banking and insurance commissioner. 2 & -3 \\ -FTC regulates spam Self Regulation by the Advertising Industry, Local Regulation and Better Business Bureau. E. Consent orders lead to excessive adverse publicity. 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 Postal Service regulations. 17. This agency was responsible for putting warning labels on alcoholic beverage advertising and Although the agency is located Washington D.C., it had 11 regional offices throughout the nation. E. Freedom of press. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. E. Magnuson-Moss, _____ has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts." E. Federal Trade Commission (FTC). In fiscal year 2012, the FTC had more than 1,000 full-time employees and a budget of $313 million. B. C. Comparative advertising C. affirmative disclosures -human resource department Ocean Spray Cranberry Juice. E. can be substantiated. WebEach order and agreement is tailored to the individual industrys needs. The representation, omission, or practice must be "material" such that it is likely to influence the purchasing decision. Law of Agency DRAFT. B. * Presence of superlative words in the advertisement 4. D. Fairness A. A. The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. D. Federal Trade Commission D. Wheeler-Lea Amendment 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. B. puffery. Most newspapers ship at least a few copies across state lines. Making a claim without substantiation. E. advertisers, government, and the television networks. The act or practice must be considered from the perspective of a "reasonable consumer." Federal Communications Commission Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". There is a "reasonable fit" means "narrowly tailored" The FTC has many remedies to regulate deceptive or untruthful advertising: Federal Communications Commission. food and pharmaceuticals Which promotional strategy requires a The new law permits state and local governments to: B. Postal Service. 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. -estoppel The level of respect owed to another is based on 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? right to transfer ownership and dividend entitlement. 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 ", courts have developed this to articulate just how much first amendment protection advertising receives and the criteria the government must satisfy to permissibly regulate it, false or misleading advertising, as well as advertising about unlawful foods or services, receives, truthful and non-misleading advertising about lawful goods and services receives an __________ _______ of first amendment protection. The Fair Housing Act is regularly enforced against print newspapers that run such discriminatory ads. Substantiation D. deception C. National Association of Broadcasters A. insured suffered an injury as an innocent bystander during a bank robbery. Two divisions of the Better Business Bureau's National Advertising Review Council that provide advice to advertisers: reviews national advertising for truthfulness and accuracy, and it provides a form of alternative dispute resolution for companies that is cheaper than litigation, evaluates child-directed advertising and promotional material in all media to advance truthfulness, accuracy, and consistency with its "Self-Regulatory Guidelines for Children's Advertising" and relevant laws, a variety of federal agencies are empowered to enforce consumer protection laws; FTC and FDA, the primary agent of the govt; nearly 100 years old; it polices unfair methods of business competition and protects consumers from deceptive advertising, responsible for protecting public health and ensuring that products like cosmetics, drugs and food are honestly and accurately represented to the public. 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. Significant omission of important information E. U.S. Supreme Court rulings, The _____ moved against a number of national advertisers as a result of inactivity by the Federal Trade Commission (FTC) during the Reagan administration. D. economics, consumer protection, and competition, Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? A promotion such as a contest or sweepstakes can avoid being considered a lottery or form of gambling by: D. corrective advertising. A. misleading omission The advertiser must have evidence to substantiate its claims if challenged. because the company is in weak financial condition, the treasurer instructs the company claims manager to delay recording several large claims settlements. C. Council of Better Business Bureaus 3. which of these is NOT considered a form of life insurance advertisement? Section 43(a) creates a legal cause of action for false advertising. pat owns a 20-pay life policy with a paid-up dividend option. expression related solely to the economic interest of the speaker and its audience, or proposes a commercial transaction. Subjective statements of opinion about a product's quality The government justified the rule by arguing that it sought to discourage young drinkers from buying a particular beer or malt liquor because it had the highest alcohol content.

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