Newspapers, magazines, broadcasting stations, online service providers and other mass media all have rules that regulate the kind of advertising they carry. B. Lanham Act C. puffery. In 2008 the 7th U.S. c. competence. -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. Does this message injure the plaintiff? 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. -keep replacement records on file for at least 10 years C. The media can refuse to accept individual ads they find offensive or objectionable. B. Is this message false or misleading? ____, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. Freedom of using any media vehicle WebStudy with Quizlet and memorize flashcards containing terms like Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of Advertising Practices found to be unfair or deceptive 3. The test is whether the consumer's interpretation or reaction is reasonable. Information Technology Act (ITA). Bait-and-switch advertising. If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. C. puffery this false statement is considered But practically, it can regulate almost all advertising. 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. Business Ethics and Legal Final Review E. Affirmative disclosure. B. can be decoded to have several different meanings. B. speech that promotes a commercial transaction. Injunctions: Food and Drug Administration C. Clayton Antitrust Act B. a commercial that was rejected at the storyboard stage is accepted at the final stage. -policy owners Don't press 1 to speak to a live operator and don't press any other number to get your number off the list. 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. The TRRs are much broader and make it much harder for advertisers to skirt the limitations. A. order the company to stop running the ad. -term life policies are the only type of insurance that allows policy loans E. Clayton Antitrust Act, The Bureau of Alcohol, Tobacco, and Firearms (BATF) is an agency within the ____. May also argue the claim in question is not material, and therefore will not impact a purchasing decision. 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. Significant omission of important information. How many ads are in your general vicinity each day? The U.S. Supreme Court established the ____, a four-part test, to determine restrictions on commercial speech. An advertiser who says that his product is the "best," "greatest," etc. B. The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. what kind of rider is this? D. Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff. B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. Which of the following statements is TRUE? -insurance companies, policy owners from misrepresentation and loss of benefits, advertising material for a life insurance policy does NOT need to contain which of the following? a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. A. enhance the credibility of the publication. 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 agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. Federal Trade Commission 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. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: But if time is the greatest enemy, publicity is the FTC's strongest ally. reggie purchased a life insurance policy with a face amount of $500,000. 7. A. within one month of the appearance of the ad. Magazines A. Magnuson-Moss Act of 1975 D. misleading omission 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. Will you buy the book? -This act protects American consumers even more by preventing mergers or acquisitions that are likely to stifle competition. [4320]+[wyxz]=[2035]. Offering for sale of lease . 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. B. premiums There has also been a rapid increase in lawsuits brought by advertisers against one another under Section 43(a) of the Lanham Act. A. Injunctive power to immediately halt advertising campaigns that could cause harm to consumers Individuals who are represented in the ads must be actual consumers, unless stated otherwise. 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. C. refer the matter to an appropriate government agency. A licensed producer MUST be __________ by an insurer to be -person's net income 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. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. Commercial speech is most accurately defined as: C. the findings of marketing research studies. *1. The act or practice must be considered from the perspective of a consumer who is acting reasonably. 1. B. B. Marketing Orders Under the Children's Television Act,: C. Puffery legitimization When the FTC issues a consent order on a final basis, it carries the force of law with respect to future actions. E. unsubstantiated order. D. Advertising deregulation -protection of proceeds against the beneficiary's creditors Subjective statements of opinion about a product's quality E. affirmative disclosure. -covered employee is terminated for gross misconduct, a covered employee who is terminated for gross misconduct. "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. Information has also been found to be material where it concerns the purpose, efficacy or cost of the product or service. The Magnuson-Moss Act of 1975: -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: Policies and procedures for self-regulation of advertising industry are established by the ____. When the FTC recovers money against a company for false or misleading advertisements, who gets to keep it? D. Most media accept any advertising they receive since advertising is their major source of revenue. The division of Consumer Protection There are 2 key divisions of the Better Business Bureau's Advertising Self-Regulatory Council (ASRC), which was known until April 2012 as the National Advertising Review Council, that provide both advice to advertisers and out-of-court methods for resolving disputes about advertisements. 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: 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). Postal Service C. not requiring consumers to make a purchase as a condition for entering. -insured 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. E. fraud, Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception? An exaggeration extended to the point of outright spoof that is obviously not true. -may cancel the policy only at renewal First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. *Consumers, as opposed to competitors, have a much more difficult time in maintaining an action for false advertising. The FTC alleged that when tickers went on sale February 2, 2009, for Bruce Springsteen concerts in May and June that year, Ticketmaster displayed a "No Tickets Found" message on its Web page to consumers to indicate that no tickets were available at that moment to fulfill their request. 57a, empowers the Commission to promulgate trade regulation rules with the force and effect of law that "define with specificity" acts or practices that the Commission finds, based on substantial evidence in the rulemaking record, are prevalent and are unfair or deceptive. Central Hudson Test 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.

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