advertising regulations exist in order to quizlet
-human resource department The origin of the Federal Trade Commission's corrective advertising program came from a deceptive advertising case involving: Which type of life insurance policy is this? Trade Regulation Rules: 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. The plaintiffs thus alleged a violation of their First Amendment right not to be compelled to fund speech-an unenumerated right to remain silent, as it were-with which they disagreed. is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. E. Advertising guidelines, According to Federal Trade Commission policy, the criteria for determining _____ are (1) a trade practice causes substantial physical or economic injury to consumers, (2) could be reasonably avoided by consumers, and (3) it must not be outweighed by countervailing benefits to consumers or competition. Consent agreements or consent orders signed by advertisers promising to terminate a deceptive advertsiement -Television networks had arbitrarily refused to air such commercials until urged to do so by the Federal Trade Commission, which suggested that such advertising would enhance the competitive nature of the marketplace. demonstrate full and truthful disclosures to the public james is the insured on a life insurance policy where his age was misstated on the -form a large PPO on a statewide level -insurance prospectors First anti-trust law was passed in 1890: the Sherman Act. 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. c. permitted consumers to sue the retailer from whom they had purchased the product. a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. WebWhen the Commissioner of Insurance requests a producer's business records, the must be produced. 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. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. "likely to mislead the consumer" "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. Advertising 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. Central Bank advertises free checking with a minimum balance of $1,000. C. affirmative disclosure. C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification. 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. 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). Litigated Orders and Injunctions: Use the following information. 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). 6. The media must accept all advertising they receive because of First Amendment that guarantees the freedom of speech. The judge also has the authority to dismiss the case. Free Speech Matrix E. Clayton Antitrust. *Functioning Return Address and Opt-Out Mechanism* A. Wheeler-Lea Amendment C. Robinson Patman Act A. The former phrase played a pivotal role in a case decided by the U.S. SUpreme Court in 2005. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. D. fairness. These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. A. D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. A. Voluntary compliance If an advertiser disagrees with a NAD or CARU decision, it can appeal to 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. -only includes calls about goods or services A. Wheeler-Lea Amendment -Also court said this case was "in the public interest". A. deceptive advertising. 2. A. *, *National Advertising Division (NAD)* But if time is the greatest enemy, publicity is the FTC's strongest ally. 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. As originally written, the law prevented only one advertiser from making false statements about his or her own goods. 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. C. Lanham Act At times a business has challenged the FTC by arguing that its particular exposition is not an advertisement but an essay or a statement of business philosophy. 3. E. the consumers may sue the company for non substantiation of the ad. E. affirmative disclosure. WebUnder the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. As with the structure of the Federal Communications Commission described in Chapter 16, no more than 3 of the 5 commissioners can be from the same political party. E. Network standards have become more stringent in response to competition from independent and cable stations. C. consumers recognize puffery and don't believe it. II. -Substantiation Since the mid-1970s commercial advertising has been given the qualified protection of the First Amendment because much advertising contains information that is valuable to consumers. -may raise premiums at anytime C. Wheeler-Lea Amendment Cease-and-desist orders: 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. 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. (you have to scroll down to be able to see it) National Advertising Division (NAD) and Child Advertising Review Unit (CARU). Subjective statements of opinion about a product's quality Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and refrain from doing so until a hearing is held. A. 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. Federal Trade Commission Laws and rules prep Flashcards | Quizlet Vision Council of America 5. permitted consumers to sue manufacturers with whom they had no contractual relationships. Individuals who are represented in the ads must be actual consumers, unless stated otherwise. C. Bureau of Alcohol, Tobacco and Firearms Federal Communications Commission 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 ________________________. Implied uniqueness Uder the terms of the CAN-SPAM Act, each separate e-mail in violation of the law is subject to penalties of up to $________________, and more than one person may be held responsible for violations. Unfairness "acting reasonably in the circumstances" Which of the following is the best example of the use of puffery in advertising? Misleading comparative claims. An investigation into the lengths of celery sticks grown in a certain US state. -no more than 3 commissioners can be from the same political party, Bryers case and FDA - label said no trans fat, but it had a lot of saturated and total fat - FDA said consumers will not be aware of the difference, Do Not Call List: C. Lanham Act A large protion of that money, under the federal Beef Promotion and Research Act, has gone to finance generic advertising for the beef industry, including the "Beef. ________________________________: All commercial e-mail messages must disclose 3 specific items of content: (a) a clear and conspicuous identification of the message as an "advertisement or solicitation," (b) a notice of "opt-out" mechanism, and (c) a "valid physical postal address." 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. A. B. Lanham In response to a request from the Institute for Public Representation for such a policy statement, the FTC said corrective advertising may be applied: "If a deceptive advertisement has played a substantial role in creating or reinforcing in the public's mind a false and material belief which lives on after the false advertising ceases, there is clear and continuing injury to competition, and to the consuming public as consumers continue to make purchasing decisions based on the false belief." *False/Misleading Messages* C. not requiring consumers to make a purchase as a condition for entering. The most commonly used FTC remedy is the consent agreement, or _____________________________. The judge can uphold the complaint or reject it. 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 the insured must now wait 60 days before bringing in legal action against the insurer. In other words, the Livestock Marketing Association and the other plaintiff in the case objected to the fact that they were compelled to subsidized speech-the generic beef advertising campaign-to which they objected. C. are issued by the Federal Trade Commission. CAN-SPAM Act 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. -This act makes it illegal for competitors to make agreements with each other that would limit competition. 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. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser." WebI. -purchase health insurance from the federal government D. Bureau of Consumer Protection D. Trademark Improvements Act D. U.S. Department of Welfare The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. D. Freedom of speech B. 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. D. STP Corporation. Substantiation: The representation, omission or practice must be material. -waiting period A. Deception In addition, the FTC made it clear that the "opt-out" mechanism, used by a commercial sender cannot require a recipient to take any steps other than sending a reply e-mail message or visiting a single Internet Web page to opt out of receiving future e-mail from that sender. It may believe that the advertising claim is truthful or may simply want to hold off any FTC ban on certain kinds of product claims. Deceptive advertising If either of the latter two events occur, a complaint is issued against the advertiser, and a hearing is scheduled before an administrative law judge. In either case, the losing side can appeal to the federal trade commissioners for a final ruling. C. if the ad uses puffery. Finally, in 2012, the FTC offered this sage but simple piece of advice to anyone receiving a robocall: "Hang uo the phone. According to the FTC's definition of deception, a representation, omission, or practice has materiality if it: Which of the following statements about advertising by attorneys, dentists and physicians is true? -method of payment A. a consent order. WebWhich of the following industries are significantly influenced by laws regulating product purity and labeling? D. Food and Drug Administration E. a commercial is rejected at the idea generation stage. -joint Corrective Advertising: -set sales quota 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. E. Consent orders lead to excessive adverse publicity. E. Puffery is only illegal if it eliminates a competitive advantage. C. The division of Marketing Practices An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. -annuity's guaranteed interest rate A. materiality. The students had a right, in other words, to not speak. C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. Litigated orders -CAN-SPAM Act Texaco claimed its ClearSystem gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas. Voluntary compliance: 3) The advertiser can refuse to sign the agreement. D. discourage comparative advertising. Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. D. FDA Act Advertising which praises the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally stating no specific facts. Quizlet E. National Association of Broadcasters, C. American Association of Advertising Agencies. Food and Drug Administration. It has its own standards of practice and creative code. E. National Association of Broadcasters. This remedy is infrequently used. A. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____. C. ad substantiation agreement C. Lack of selective disclosure A. Magnuson-Moss Act of 1975 May also argue the claim in question is not material, and therefore will not impact a purchasing decision. -beneficiaries 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. -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. B. D. publishing the odds of winning. A. Corrective advertising Substantiation D. Federal Trade Commission Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. E. Telephone Consumer Protection Act, ) The Federal Trade Commission and U.S. -budget is $300 million Advertising Regulations Flashcards | Quizlet 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 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. The U.S. Court of Appeals for the District of Columbia Circuit upheld the rule, reasoning that "the rule aims to prevent consumer cofusion about the total price they have to pay, and it goes without saying that requiring the total price to be the most prominent number is reasoablyy related to that interest." how are survivorship life insurance policies helpful in estate planning? What is the role of the leader and follower in the leadership process? D. a commercial is approved at the storyboard stage but then is rejected after it is produced. the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the banking and insurance commissioner. B. Centre for Electronic Technology. B. can be decoded to have several different meanings. Postal Service E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? C. Robinson Patman Act Is this message false or misleading? Champion Sportswear has developed a "Super Bowl Sweepstakes" that it plans to promote. B. Sherman Antitrust Act -name If he drove the Audi today, what are the probabilities for the cars that he will drive 444 days from now? Federal Trade Commission. Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. SUMMARY: -guaranteed insurability rider, the commissioner may -estoppel -Not only is it now possible for plaintiffs to win actual damages and court costs from the defendant, but they can also tap into any profit made by the competitor through the use of a bogus advertising campaign. Also, the time factor works in the advertiser's favor. Trade regulation rules that can be issued to regulate advertising throughout an entire industry. Several airlines challenged the rule on First Amendment grounds in Spirit Airlines v. U.S. De'p of Transporatition. Advertisers need to take special care when dealing with testimonials and endorsements. An advertiser seeking redress under this federal law can seek to stop the misleading practice and/or win money damages. Television advertising: -establish continuing education requirements It's What's for Dinner" campaign. C) It involves underpricing products so that companies make larger sales. Although the agency is located Washington D.C., it had 11 regional offices throughout the nation. -12 different locations across nation 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. B. puffery. Substantial Omission Ohio Laws and Rules Flashcards | Quizlet * B. Robinson Patman Act Federal Trade Commission All broadcasting stations are considered to affect interstate commerce. C. The media can refuse to accept individual ads they find offensive or objectionable. The merchant then claims the product is not available at the price but another model can be purchased at a high price. To be deceptive an advertisement must contain a representation, omission or practice that is likely to mislead the consumer, the advertisement or practice must be considered from the perspective of a reasonable consumer; and the representation, omission or practice must be material. WebAdvertising is not equally productive for firms in every market type. B. 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. The endorsement can be communicated by a verbal message, demonstration, picture or likeness, signature or other identifying personal characteristic or the seal of an organization. Information Technology Act (ITA). D. The division of Advertising Practices Harry Nims, a New York lawyer, drafted a model law called the *Printers' Ink statute+ (it was Printers' Ink magazine that urged passage of the law) in 1911. The FTC charged that Ticketmaster used this Web page to steer unknowing consumers to TicketsNow, where tickets were offered at much higher prices-in some cases double, triple or quadruple the face value. The act's title represents a tortured acronym for a bill officially called the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003."
