Consent agreements or consent orders signed by advertisers promising to terminate a deceptive advertsiement C. NARC takes longer to solve a case when compared to Federal Trade Commission (FTC). insured suffered an injury as an innocent bystander during a bank robbery. Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. E. National Association of Broadcasters. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. E. Consent orders lead to excessive adverse publicity. A. U.S. 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. -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. D. Affirmative disclosure B. The advertiser may appeal this decision in a federal court. 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. 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 ___________. -Lawyers are only allowed to state past facts, they can't promise future things *Child Advertising Review Unit (CARU)*. With the rapid growth of comparative advertising (in which the advertised product is compared to a competitor's product), more and more advertisers have taken competitors to court over what they claim is deceptive and false advertising. A well-educated physician might be better able to understand a complicated pharmaceutical ad than the average individual can. There was no government ban on the disclosure of the alcohol content in advertising for these brews, Justice Clarence Thomas wrote. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. D. Vision Council of America The advertiser is not responsible for every interpretation or behavior by a consumer. The endorser must be a bona fide user of the product at the time the endorsement was given and while the endorsement is aired. -guaranteed benefit -joint In 2008 the FTC clarified that the "valid physical postal address" that must be disclosed by the sender of commercial e-mail messages can be either a registered post office box or a private mailbox established under U.S. 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. Free Speech Matrix They speed up and simplify the process of enforcement. -this is why there are so many laws because there are so many ads; also, Lanham Act gives a good amount of money if you win one of these cases, ______ is a powerful, strong, and influential agency. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. 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: Injunctions: C. National Advertising Review Board D. Internet There was time when competition between businesses hardly existed. 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. D. discounts This the First mendment plainly permits." 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. -all serve 7 terms The FTC does not attempt to scrutinize every advertisement that is published or broadcast. 4. When advertisements or sales practices are targeted to a specific audience, such as those aimed at children or people who are elderly or terminally ill, they will be viewed from the perspective of a reasonable member of that group. -contributory -indemnity Information Technology Distribution . -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a C. Federal Trade Commission. Advertisers need to take special care when dealing with testimonials and endorsements. The FTC usually requires an advertiser to substantiate claims that go beyond those permitted by the guides or may even bring a false advertising action against the business. After a disability policy has been in force for _____ years, it is considered incontestable. C. Department of Commerce (DOC) 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. WebAdvertising regulations exist in order to Demonstrate full and truthful disclosures to the public The purpose of Advertising regulations is to assure full and truthful disclosures to 4: Social, Ethical, and Regulatory Aspects of Advertising and B. Advertising, as a form of expression subject to legal regulation and potential First Amendment protection, is the dominant cultural icon of our time. A. "likely to mislead the consumer" In addition to policing false advertising, the FTC is charged with enforcing the nation's antitrust laws and several federal statutes such as the Truth in Lending Law and the Fair Credit Reporting Act. 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. A. uses puffery. D. Most media accept any advertising they receive since advertising is their major source of revenue. The former phrase played a pivotal role in a case decided by the U.S. SUpreme Court in 2005. -notify the existing insurer of the proposed replacement Bait-and-switch advertising. The level of respect owed to another is based on The commissioners then vote on whether to issue a complaint. Adv. Mkt Ch 20 with Flashcards | Quizlet Which of the following is the best example of the use of puffery in advertising? A. FTC Tools or Remedies to Stop False Advertising: Postal Service Advertising Practices found to be unfair or deceptive 2. D. Electronic Retailing Self-Regulation Program Several other companies received similar letters in 2010 from the FDA regarding front-panel "no trans fat" claims that failed to disclose significant levels of saturated fat and total fat. WebI. B. A. Corrective advertising Marketing Orders C. Most FTC inquiries are settled by consent order. ) There is just an agreement not to repeat that particular claim in future advertising campaigns. This is an example of: "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. D. Lanham Act 5. D. were made legally binding by the Robinson-Patman Act. the role of the federal government was expanded when Medicaid was established by allowing the state to Federal Trade Commission -jurisdiction is not particularly limited The problem for Roommates.com was that it solicited specific content from users and forced them to use pull-down menus with questions featuring specific answer options in which they could express illegal and discriminatory views. Does the FTC regulate all advertising? Implied uniqueness President Theodor Roosevelt broke up many Trusts by making anti-trust laws. In other words, the do-not-call registry bears a reasonable fit with the purposes the government sought to advance. The substantiation does not have to be in the ad itself. WebUnder the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. 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. A. Since these firms have differentiated products, they The 7th Circuit, however, held that Craigslist was protected by Section 230 of the CDA, which generally shields online service providers from liability when they are mere conduits (rather than publishers or speakers) for information posted by third parties. f(x)=(x5)(12x). Information Technology Act (ITA). Better Business Bureau 8. Making a claim without substantiation. A. puffery Trade regulation rules have had a great deterrent effect, as they comprehensively delimit what constitutes an illegal practice. C. Electronic Retailing Agency. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. A. The advertiser can agree to sign the agreement, and the commissioners vote to accept this agreement. 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. The _____ made it easier for Chevron to sue Texaco for this perceived misrepresentation. -person's employment history 2. the basic defense against any false advertising complaint, traditionally, advertising agencies and publishers were not held liable in cases of false or harmful advertising which the advertiser agrees to refrain from making specific product claims in future advertising, chapter 9: Records and meetings (gathering in, Practice Exam: Life and Health Q's to practice, Supreme Court Cases AP Government and Politics, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Daniel F Viele, David H Marshall, Wayne W McManus. -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. C. defined the requirements for advertising substantiation. -establish new insurance laws, establish continuing education requirements, which of the following is true concerning the proceeds of a life insurance policy? The FTC was created by Congress in 1914 to police unfair methods of business competition. B. ad substantiation. E. Information Technology Act. -$300,000 A variety of federal agencies are empowered to enforce consumer protection laws. which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? National Association of Broadcasters B. affirmative disclosure c. competence. Most newspapers ship at least a few copies across state lines. all commercial e-mails must disclose a) it is an advertisement or solicitation, b) an opt-out mechanism, and c) a "valid physical postal address.". these are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices, if the ftc believes a claim to be deceptive, the company can voluntarily agree to terminate the advertisement and never use the claim again, also known as a consent order or decree is a written agreement between the commission and the advertiser in any representations that would be deceptive or could not be substantiated if made directly by the advertiser, the commission can issue an order to stop the particular advertising claim, the commission asks advertisers to prove all the claims made in the advertisements, the ftc forces the advertiser to inform the public that in the past it has not been honest or misleading, the ftc can seek an injunction to immediately stop advertisements that it believed to violate the law; the agency will only use this power in those instances where the advertising can cause harm, these can be issued to regulate advertising through an entire industry, 1) The advertiser can agree to sign the agreement, and the commissioners vote to accept the agreement. A. Magnuson-Moss Act of 1975 C. Campbell Soup. *Aggravated Violations*. Quizlet The act or practice must be considered from the perspective of a consumer who is acting reasonably. Finally, the commission has stated that when consumers can easily evaluate the product or service, when it is inexpensive, and when it is frequently purchased, the commission scrutinizes the advertisement or representation in a less critical manner. In summary, competitor-versus-competitor lawsuits are now common. D. Advertising deregulation -Usually for campaigns D. Freedom of speech Postal Service. No. C. an illegal deception. B. superiority advocacy. A. defined commercial speech. E. avoid comparative advertising. A. unsolicited order -form a large PPO on a statewide level First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. -home address 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. -The act also make sit illegal for a business to be a monopoly if that company is cheating or not competing fairly. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: B. is regulated through codes developed and enforced by the Federal Trade Commission. Guidelines developed by the FTC are used by state courts to administer regulations. Postal Service 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. Although ad agencies and publishers/broadcasters are generally not held liable in cases of false or harmful advertising, there are signs that the law is changing. The law outlaws bait-and-swithc advertising, in which customers are lured to a store with promises of low prices but then are pushed by salespeople to buy more expensive products. The advertising industry's most effective self-regulatory mechanism is the: 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. C. U. S. Postal Service * Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. C. Robinson Patman Act -3 & 0 The order is published and made final in 60 days. C. children, advertisers, and agencies. Children's Advertising Review Unit (CARU) D. impose a fine. A. E. Sherman Antitrust Act. In 2008 the 7th U.S. A licensed producer MUST be __________ by an insurer to be As a general rule, the First Amendment does not require that the government regulate all aspects of a problem before it can make progress on any front." C. coercion A. *Functioning Return Address and Opt-Out Mechanism* Under the Children's Television Act,: D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. That obviously can add up very fast. In 2012, the FTC filed 62 actions in federal court and obtained 94 orders for redress, disgorgement of profits and permanent injunctions against individuals and businesses. 3. C. is important to consumer and would likely have an effect on the purchase decision. Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? WebAdvertising regulations exist to Assure full and truthful disclosures to the public An agent has committed an insurance crime that violates US code 1033 (interstate commerce). -guaranteed insurability rider, the commissioner may Food and Drug Administration B. 3. *3. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? 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. B. all clients and B. if the ad does not provide sufficient information to the consumers so as to make an informed decision. What is Parramore's cash conversion cycle (CCC)? 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. E. Freedom of press. -shared B. B. a commercial that was rejected at the storyboard stage is accepted at the final stage. Unfairness Litigated Order: US Postal Service (USPS) Responsible for regulating direct mail advertising and National Advertising Review Board Substantiation of advertisements, in which the advertiser must prove all claims made in an advertisement A. The companies that received the warning letters had 15 working days to inform the FDA of the steps that they were or would be taking to correct their labels. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. C. regulation, restriction, and reconstruction. B. provides for the review and evaluation of all child-directed advertising. E. Advertising substantiation. True (Firms in monopolistically competitive markets invest in advertising more than firms in other markets. B. affirmative disclosure The NARC became involved in the self-regulation of electronic retailing when it initiated the: B. Using an ambiguous or easily confused phrase. The FTC prohibits this; Lures consumers into a store who are in the market for an item seen at one price. Tags: Question 34 . 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. As originally written, the law prevented only one advertiser from making false statements about his or her own goods. B. speech that promotes a commercial transaction. 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?
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