The degree of substantiation that will be deemed reasonable varies with "the type of claim, the product, the consequences of a false claim,, the benefits of a truthful claim, the cost of developing substantiationand the amount of substantiation experts in the field believe is reasonable," the policy statement said. -lengthy elimination period, premium mode is a term used to describe the WebAdvertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. Newspapers, magazines, broadcasting stations, online service providers and other mass media all have rules that more or less regulate the kind of advertising they will carry. B. D. publishing the odds of winning. B. C. selective retention. expression related solely to the economic interest of the speaker and its audience, or proposes a commercial transaction. C. U.S. -third party administrators B. -Plaintiffs in Lanham Act cases had traditionally sought only to stop the competitor's advertising claims. B. all clients and C. National Advertising Review Board food and pharmaceuticals Which promotional strategy requires a advertising regulations exist in order to quizlet. C. Wheeler Lea Amendment to the FTC Act C. any type of comparative advertising. MMLAW Ch. 15: Regulation of Advertising Flashcards 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. Finally, in 2012, the FTC offered this sage but simple piece of advice to anyone receiving a robocall: "Hang uo the phone. what kind of rider is this? C. U. S. Postal Service The FTC does not presume that the claims are false or misleading. -Consent agreement A. A licensed producer MUST be __________ by an insurer to be 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. If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. No. -Litigated orders 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. SURVEY . The most recent commission policy statement on substantiation was issued in 1984. Complaints against advertisers are prepared by the FTC staff and approved by a vote of the commission. Use the following information. -$200,000, which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? B. require an advertiser to run comparative advertisement. Advertising, as a form of expression subject to legal regulation and potential First Amendment protection, is the dominant cultural icon of our time. Commercial Speech Doctrine. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. Voluntary compliance: C. Campbell Soup. You see an advertisement for a book that claims to show how you can make $1 million with no risk and with no money down. Omitting a needed qualification. A. advertising aimed at children is prohibited. It enforces the laws that prohibit business practices that are anticompetitive, deceptive or unfair to consumers, and it seeks to do so without impeding legitimate business activity. Weba. -defer all costs to the federal government for public assistance programs, receive matching funds to expand public assistance programs, ownership of a life insurance policy may be temporarily transferred with a(n), replacement regulation is designed to protect the interests of C. Robinson Patman Act E. Puffery is only illegal if it eliminates a competitive advantage. D. A consent order prohibits an advertiser from making a specified advertising claim for 30 days. -covered employee is terminated for gross misconduct, a covered employee who is terminated for gross misconduct. Bureau of Competition The act or practice must be considered from the perspective of a consumer who is acting reasonably. 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 If Parramore could lower its inventories and receivables by 10 percent each and increase its payables by 10 percent, all without affecting sales or cost of goods sold, what would be the new CCC, how much cash would be freed up, and how would that affect pretax profits? A. deceptive advertising. C. is important to consumer and would likely have an effect on the purchase decision. & 1125, provides that a person who generates "any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, whichin commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or geographic origin of his or another person's goods, services, or commercial activities" is liable for civil damages. 1. A. The majority concluded that while "citizens may challenge compelled support of private speeech" they "have no First Amendment right not to fund government speech." B. Courts generally give less protection for commercial speech by lawyers than advertising publications -is made available after paying a $50 fee. govt may regulate A. rebates and refunds C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: -only includes calls about goods or services Food and Drug Administration -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: E. contests and sweepstakes, Marketers' use of trade allowances is controlled by the ____, which prohibits price discrimination. B. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: B. provides for the review and evaluation of all child-directed advertising. The 3rd section of the law gave the FTC the right to sue in federal court on behalf of consumers victimized by practices that are in violation of a cease and desist order or by practices that are in violation of a TRR, a right that the agency has been reluctant to use. -agents. An injunction is clearly a drastic remedy and one that the agency has said it will not use often. Vision Council of America In addition, political robocalls--a major source of annoyance for many during the 2012 election year--and robocalls from charities seeking donations are permissible. The advertiser is simply asked to prove the claims are truthful.The substantiation process today involves panels of experts who scrutinize advertisements and target for documentation those claims that seem most suspect. a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. B. Robinson Patman Act Antitrust Laws Spam also represents an economically efficient and inexpensive way of marketing one's product or service. A variety of federal agencies are empowered to enforce consumer protection laws. A. Listerine. Almost anyone who has watched television advertisements during the past decade or so is familiar with trademarked slogans such as "Beef. National Advertising Review Board tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. Within how many days must a producer notify the department of banking and insurance of a change in address? D. Vision Council of America Does the FTC regulate all advertising? 4. Which of the following statements concerning advertising by attorneys is true? B) It can be profitably used when the product's quality and image support its price. E. Substantiation, Under the _____ Doctrine, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. Quizlet C. Bureau of Alcohol, Tobacco and Firearms Pr(\operatorname{Pr}(Pr( Audi after Ford )=0.6Pr(VW)=0.6 \quad \operatorname{Pr}(\mathrm{VW})=0.6Pr(VW after Ford )=0.4)=0.4)=0.4 National Advertising Review Board The advertiser must have evidence to substantiate its claims if challenged. Another word for advertisement is _____________________. E. Trade Regulation Bureau, Which of the following divisions of the Federal Trade Commission protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level? -insured E. Independent Business Alliance, D. Electronic Retailing Self-Regulation Program. -1200 employees 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.". The telemarketers, however, argued that the exemptions for political and charitable calls made this state "under inclusive"--that to effectively serve the interests of protecting privacy and preventing fraud, the registry should also apply to political and charitable solicitations, not just to commercial sales calls. E. Federal Communication Reform Act. D. Electronic Retailing Self-Regulation Program (ERSP). -human resource department D. Cease-and-desist orders A material misrepresentation or practice is one that is likely to affect a consumer's choice of a product. The NARC became involved in the self-regulation of electronic retailing when it initiated the: E. advertisers who do not want to be self-regulated. -protection of proceeds against the insured's and the beneficiary's creditors C. Robinson Patman Act D. a commercial is approved at the storyboard stage but then is rejected after it is produced. This fact is not surprising when you consider that at the time the public became interested in advertising regulation-around the turn of the century-the federal government was a minuscule creature relative to its present size. In 2012, a federal appellate court uhoeld a Department of Transporation rule affecting the price of tickets advertised by airlines. What message, either explicitly or implicitly, does the ad convey? Advertising FTC Definition of False or Deceptive Advertising: Businesses must have evidence to back up their claims. B. B. puffery. E. fraud, Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception? -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 D. Lanham Act. (you have to scroll down to be able to see it) Suggesting that a trivial difference is important. Federal Communications Commission 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 -establish insurer rates E. the consumers may sue the company for non substantiation of the ad. Ohio Laws and Rules Flashcards | Quizlet In dealing with false advertising, the FTC's greatest enemy is the time needed to bring an action against an advertiser. E. avoid questionable advocacy advertising. Law greatly enlarged both the power and the jurisdiction of the FTC. Vision Council of America WebA life insurable policy's advertising material MUST contain all of the following information EXCEPT: Agent's commission. The new law permits state and local governments to: C. affirmative disclosures 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. 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. C. The media can refuse to accept individual ads they find offensive or objectionable. B. continued coverage under COBRA would be provided to all of the following EXCEPT Federal Trade Commission. Postal Service demonstrate full and truthful disclosures to the public. SUMMARY: 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? an amount the premium would have purchased at the correct age. C. Bureau of Alcohol, Tobacco and Firearms A. Beginning in the 1990s the Food and Drug Administration (FDA) began an aggressive campaign against a variety of companies to force them to change their labeling and promotional practices. * 5. First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. *A First Amendment right not to be compelled by the government to speak has been recognized by the Supreme Court in some situations. E. Network standards have become more stringent in response to competition from independent and cable stations. 6. -47% of the time people can't tell it is native advertising Since the early 1980s the corrective advertising sanction has been used sparingly by the agency. Using A. unsolicited order Advertising To address the negative aspects of spam, Congress passed and President George W. Bush signed into law in 2003 the __________________. *National Advertising Review Board (NARB)*. E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? FTC Tools or Remedies to Stop False Advertising: demonstrate full and truthful disclosures to the public james is the insured on a life insurance policy where his age was misstated on the Fact Sheet 5 Tobacco Product Marketing Restrictions - Public C. Bureau of Alcohol, Tobacco and Firearms The FTC has many remedies to regulate deceptive or untruthful advertising: A. misinterpretation 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. A. FTC Act An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. E. dealt with consumers' rights regarding product warranties. False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. A. Litigated Order: C. affirmative disclosure. -jurisdiction is not particularly limited The 10th Circuit ruled in 2004 that the Registry did not violate First Amendment rights because the government asserted a _______ and the Registry directly advanced that interest. C. According to the Federal Trade Commission consumers believe in puffery. E. consumers believe in puffery. SUMMARY: C. defined the requirements for advertising substantiation. 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. Corrective Advertising Under the Children's Television Act,: Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. -establish continuing education requirements There is a substantial state interest to justify the regulation. (c) How do we test a binary predictor for significance? The regulation of deceptive or untruthful advertising is a large and difficult task policed by the advertising industry itself, the mass media and various governmental agencies. -guaranteed benefit C. Consumer Protection The U.S. Supreme Court established the ____, a four-part test, to determine restrictions on commercial speech. A. materiality. C. Most FTC inquiries are settled by consent order. ) -are the only ones to involve courts Although that slogan at first may seem to benegit the entire beef and cattle industry, a number of cattle producers objected to it because, as the Supreme Court put it, "the advertising promotes beef as a generic commondity, which, they ccontended, impedes their efforts to promote the superiority of, inter alia, American Beef, grain-fed beef, or certified Angus or Herefore beef." The representation, omission, or practice must be "material" such that it is likely to influence the purchasing decision. B. implied uniqueness Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. 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. -insurance company, an insured's status under social security can be described as.. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: 3. -split E. Information Technology Act. f(x)=(x5)(12x). 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 A man owns an Audi, a Ford, and a VW. 180 seconds . B. premiums Will you buy the book? \end{array}\right] C. Corrective advertising B. advertisers so that they can sue media for not providing them with the promised reach and frequency. 3. -Usually for campaigns 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." E. puffery. ) -frequency of the premium payment Advertising by attorneys is legal in the entire United States. Tags: Question 34 . E. National Association of Broadcasters. III only. The act or practice must be considered from the perspective of a "reasonable consumer." In addition, consumer reaction to the charges often results in list sales as well. D. Internet *Corrective Advertising*is a highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient. A. both an encoding and a decoding tool for communications. 2. D. U.S. Justice Department. Sometimes the owner of the medium thinks the product that is being advertised is offensive, like NC-17 or adult movies, or condoms. D. were made legally binding by the Robinson-Patman Act. First anti-trust law was passed in 1890: the Sherman Act. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. B. *Functioning Return Address and Opt-Out Mechanism* A. FTC Act For instance, in 2012 CARU recommended that the maker of Bratz Party Dolls alter packaging that featured the text "now with 100s of poses" and included photos of 3 dolls posed without assistance in various stances. 2 & -3 \\ A. cease-and-desist order C. puffery A. A. Wheeler-Lea Amendment D. an advertisement has the potential to mislead an unsophisticated consumer. Federal Communications Commission A chairperson, one of the 5 commissioners, is appointed by the president. -5 commissioners, appointed by the President, including the chair man Law of Agency DRAFT. 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. Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. Is this message false or misleading? In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. 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. The case goes to an appellate court, and there is no new finding of fact: What the FTC says is fact, is fact. Consent agreements or consent orders signed by advertisers promising to terminate a deceptive advertsiement B. If this happens the order is published and made final in 60 days. -survivorship, in contrast to a guaranteed renewable policy, a non cancellable policy D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. A. D. multiple interpretations. Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: Bureau of Compliance Litigated orders to advertisers to terminate a particular advertising claim, failure to comply with which can result in severe penalty More part of the new law is that the endorsers may also be subject to liability for their statements. Sometimes an advertiser doesn't want to sign a consent agreement. E. injunction. B. A. U.S. C. selective retention A. Lanham Act D. misleading omission period of time after the premium is due but the policy remains in force. It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. E. Clayton Antitrust. New Jersey Laws and rules Flashcards | Quizlet -beneficiaries A. A. previous advertising has led to the formation of false beliefs about a product. Federal Trade Commission's (FTC's) _____ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. 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. Central Hudson D. corrective advertising. D. fairness. Industry guides apply only to prospective advertising campaigns, events that have not yet occurred. -FTC says just prove to us this is real; they should be coming from the standpoint it is truthful (but probably not) C. are issued by the Federal Trade Commission. Federal Trade Commission -producer D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. *The decision marked a victory for privacy advocates but can be seen as a blow to the free speech rights of telemarketers. 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. Trade regulation rules that can be issued to regulate advertising throughout an entire industry. What's more, the FTC made sure in 2012 that more than 477,000 consumers received monetary redress totaling $26.8 million. Information pertaining to the "central characteristics of the product or service" is usually considered to be material. A. "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. 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. Regulation of Advertising and Promotion Flashcards | Quizlet C. Wheeler-Lea Amendment There Importantly today, the FTC's prohibition against unfair or deceptive advertising and fraudulent marketing in any medium includes the Internet. A. A. a consent order. Almost everyone who uses electronic mail has received unsolicited commercial advertising known as "spam." Endorsement of a product by an unqualified spokesperson or by a spokesperson who doesn't use the product. B. a superlative; illegal A. exchange The division of Broadcasting 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. 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.
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