Individuals who are represented in the ads must be actual consumers, unless stated otherwise. WebAdvertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. WebGovernment may regulate advertising that. -Voluntary compliance 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. -waiting period The consent agreement is merely a promise not to do something in the future. D. puffery; legal Commercial Speech Doctrine. Implied uniqueness -dental care. -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 -indemnity B. deception Local radio that has no correct answer. 3. E. Trade Regulation Act. The burden is on the government to disprove the advertiser's claim. 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. Alcohol Advertising Laws The First Amendment allows for a lot of freedom of speech in general and therefore limits how much the federal government can regulate advertising, even in regard to alcohol. -are the only ones to involve courts E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. E. the impact of cease-and-desist orders, Controversy over the FTC's authority to regulate unfair advertising practices began in 1978, when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children. D. puffery is illegal. Litigated orders Even truthful advertising for legal goods and services can be regulated, provided that the government can satisfy the 3 requirements outlined here: In 1995 the Supreme Court struck down a federal rule that forbade brewers from listing the alcohol content on labels attached to bottles and cans of beer and malt liquor. -Not too often; almost as if a newspaper has to submit a retraction "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. Again, this law provides little relief for consumers. In addition, political robocalls--a major source of annoyance for many during the 2012 election year--and robocalls from charities seeking donations are permissible. D. advertisers who want to use misleading wording in their ads. A. It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. A. an unfair claim. Between 1946 and 1968 the courts heard fewer than 30 false advertising cases. They speed up and simplify the process of enforcement. E. contests and sweepstakes, Marketers' use of trade allowances is controlled by the ____, which prohibits price discrimination. A. materiality. C) It involves underpricing products so that companies make larger sales. A. 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. Worked, however, some companies then decided to just merge together. E. National Association of Broadcasters. continued coverage under COBRA would be provided to all of the following EXCEPT 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 C. puffery; illegal -Legally, no, it cannot. -$300,000 A. enhance the credibility of the publication. Food and Drug Administration. 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: A. deception; legal Yes, as long as the disclosure requirments are reasonably related to the government's interest in preventing deception of consumers. -subrogation. E. distribution, distillation, and diversity. C. Bureau of Alcohol, Tobacco and Firearms Which of the following programs is more likely to be the most controversial of all the Federal Trade Commission's programs? D. economics, consumer protection, and competition, Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. Better Business Bureau There is a "reasonable fit" means "narrowly tailored" How many ads are in your general vicinity each day? -receive matching funds to expand public assistance programs Through custom and practice, the agency has defined advertising as any action, method or device intended to draw the attention of the public to merchandise, to services, to people and to organizations. The basis of the program is simple: The commission asks advertisers to substantiate claims made in their advertisements. The advertiser is not responsible for every interpretation or behavior by a consumer. Making a claim without substantiation. -Interstate commerce - anything that involves commerce between 2 states 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. Better Business Bureau It is only acceptable to lie when done to protect an innocent person. A. -initial premium requirement A licensed producer MUST be __________ by an insurer to be C. Bureau of Alcohol, Tobacco and Firearms B. B) It can be profitably used when the product's quality and image support its price. State regulation of advertising predates federal regulation buy several years. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. (a) What is a binary predictor? SUMMARY: There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. There is a substantial state interest to justify the regulation. Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. C. The media can refuse to accept individual ads they find offensive or objectionable. D. economics, consumer protection, and competition. E. Federal Trade Commission (FTC). Food and Drug Administration D. advertisers, agencies, and the media. insured suffered an injury as an innocent bystander during a bank robbery. C. Newspapers If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: additional penalties may be applied to those who a) engage in e-mail "harvesting," b) use multiple e-mail accounts for commercial messages, or c) use unauthorized relays for commercial. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. *Functioning Return Address and Opt-Out Mechanism* she would like to borrow $15,000 against the cash value. how are survivorship life insurance policies helpful in estate planning? What message, either explicitly or implicitly, does the ad convey? Advertisers can still litigate the question, challenge the trade regulation rue, seek an appeal in court and so forth. The challenge wad filed with NAD by a competitor of Gillette, namely Schick, which makes "Intuition Plus" razors. A(n) _____ is an agreement to stop engaging in a particular practice for settlement purposes only and does not constitute an admission of guilt by the advertiser. By 2010, the FTC had brought more than 60 telemarketing cases alleging do-not-call violations. ", 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. Industry guides apply only to prospective advertising campaigns, events that have not yet occurred. Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. Guides or advisory opinions that attempt to outline in advance what advertisers may say about a product Substantiation: Bad publicity can cost a company millions of dollars. -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. B. Ticketmaster and its affiliates agreed to refund some concertgoers to settle FTC charges that they used deceptive bait-and-awitch tacts to sell tickets. A. Corrective advertising Independent Business Alliance D. publishing the odds of winning. -annuity's guaranteed interest rate B. -only includes calls about goods or services The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. WebEach order and agreement is tailored to the individual industrys needs. The good news for consumers is that they sometimes get part of their money back. 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. A. E. Affirmative disclosure. B. was not protected by the first amendment until 1975, The Supreme Court held that commercial advertising receives a degree of First Amendment protection; Supreme Court, ""The relationship of speech to the marketplace of products or of services does not make it valueless to the marketplace of ideas. 2. -Guides and the Child Online Privacy Protection Act -beneficiaries 7. D. National Association of Attorneys General C. Campbell Soup. D. Department of the Interior (DOI) D. Fairness an advertiser promotes his/her own good and tends to pick holes in a competitor's version of the product. because the company is in weak financial condition, the treasurer instructs the company claims manager to delay recording several large claims settlements. Because the agency was created under the authority of Congress to regulate interstate commerce, products or services must be sold in interstate commerce or the advertising medium must be somehow affected by interstate commerce before the FTC can intervene. B. D. Federal Trade Commission Federal Communications Commission D. Electronic Retailing Self-Regulation Program (ERSP). SUMMARY: A. enhance the credibility of the publication. The case goes to an appellate court, and there is no new finding of fact: What the FTC says is fact, is fact. D. is concerned with the misrepresentation of premiums when used in sales promotions. -person's employment history Businesses must have evidence to back up their claims. 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. The commission evaluates the entire advertisement when examining it for misrepresentation. B. The Federal Trade Commission may require affirmative disclosure if: In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. Learn about antitrust or competition laws. B. puffery. At this point one of three things can happen: 3. what is an insurance policy's grace period? B. -FTC says just prove to us this is real; they should be coming from the standpoint it is truthful (but probably not) Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". It is not uncommon that an advertisement is ___________ because of economic interests. A study by the National Advertising Division's Children's Advertising Review Unit found that the most prevalent violation of its voluntary advertising guidelines occurred with _____ aimed at children. In 2010, the FTC went after a high-tech form of bait-and-switch advertising when it settled charges that Ticketmaster and its affiliates used deceptive bait-and-switch tactics to sell concert tickets to consumers. 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. D. NARC can handle cases at lower cost as compared to a court. * D. fairness. Postal Service _______________________ (_____): This organization, a self-regulatory forum for the advertising industry, reviews national advertising for truthfulness and accuracy, and it provides a form of alternative dispute resolution for companies that is cheaper than litigation. 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. deceptive advertising. B. can be decoded to have several different meanings. Federal Trade Commission's (FTC's) _____ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. FTC's means to police deceptive advertising, Guides and the Child Online Privacy Protection Act Finally, via TRRs the FTC is able to deal with problems more evenhandedly. The media cannot refuse to accept advertising for an entire product class such as hard liquor. 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. The students had a right, in other words, to not speak. 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. (The importance of this power alone cannot be overestimated. 2. Children's Advertising Review Unit (CARU) 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. Legislation is being considered that would either ban or impose major restrictions on C. an illegal deception. Postal Service Robocalls are illegal even if the number dialed is not on the Do Not Call Registry. 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. 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. In other words, the government could focus its attention with the registry only on the problems caused by commercial sales calls without having to also sweep up and control problems caused by political and charitable calls. C. refer the matter to an appropriate government agency. Consent Agreement: A. exchange Litigated Order: Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Significant omission of important information C. Lanham Act *There are only a handful of reasons that a judge can use to overturn the commission decision. E. The Tobacco Institute, The ____ has been heavily involved in the regulation of advertising of prescription drugs. -It became somewhat easier for plaintiffs to win Lanham Act false advertising suits. Using an ambiguous or easily confused phrase. A. employment, national security, and trade. In most cases they probably will not go to that expense. It is difficult for courts to reverse an FTC ruling. the policy may be paid up early by using policy dividends. What message, either explicitly or implicitly, does the ad convey? This is known as: A well-educated physician might be better able to understand a complicated pharmaceutical ad than the average individual can. Injunctions Weba. Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. Part of the reason for this is that the Lanham Act's rules against false advertising, which are designed to remedy unfair competition, generally allow only economic competitors to sue. 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. B. Robinson Patman Act 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. If advertisers make such claims, they are in violation of the law. D. Bureau of Alcohol, Tobacco, and Firearms Corrective Advertising In the past, after the commission issued a cease and desist order, businesses frequently attempted to undertake practices that fell just outside the narrow boundaries of the order. -establish continuing education requirements The statute, set forth at 15 U.S.C. B. FTC Improvements Act is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. * Nevada allowing prostitution in some counties, Airline tickets having to prominently show total price, and Baltimore ordinance banning alcohol ads near children's facilities are all about ________________________.