what is an insurance policy's grace period? B. encourage advertisers to buy more media space. E. Federal Trade Commission (FTC). WebThus, state and local governments remain free to regulate the time, place or manner, but not the content, of advertising and promotion of all non-cigarette tobacco products, subject to possible judicial review relating to the First Amendments protections of commercial speech. "acting reasonably in the circumstances" A. Magnuson-Moss Act of 1975 Since the early 1980s the corrective advertising sanction has been used sparingly by the agency. -method of payment Bureau of Economics D. Presence of puffery in the advertisement 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. B. selective exposure. Advertising Practices found to be unfair or deceptive 3. There is just an agreement not to repeat that particular claim in future advertising campaigns. -If you use a spokesperson, that spokesperson should support the product B. -joint 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. -person's net income 3) The advertiser can refuse to sign the agreement. A. -whether a spokesperson is paid. b. adopted the principle of caveat emptor. * C. Puffery legitimization B. advertising substantiation C. Fairness Doctrine Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. 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. There was time when competition between businesses hardly existed. There was no government ban on the disclosure of the alcohol content in advertising for these brews, Justice Clarence Thomas wrote. * B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. 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. who is able to love and work. The division of Broadcasting E. an illegal comparative advertisement. -CAN-SPAM Act 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 The Federal Trade Commission requires advertising for any product that is sweetened with saccharin to contain a warning that saccharin may be hazardous to one's health. A. B. Puffery is banned in a 1996 revision of the Uniform Commercial Code. Advertising by attorneys is legal in the entire United States. 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. Imagine that a company is nearing the end of an advertising campaign in which it has advertised that its mouthwash can prevent a consumer from getting a common cold. The Better Business Bureau guidelines Ads must tell they truth, not mislead (either by sins of omission or sins of express or implied misrepresentation) and be backed up with prior substantiation. The federal Lanham Act was adopted more than 60 years ago by Congress to stop unfair competition in the marketplace. Spam also represents an economically efficient and inexpensive way of marketing one's product or service. -waiver of premium E. Affirmative disclosure. -very easy for FTC to obtain E. lodge a class action suit for customers who have been in some way negatively affected by the ad. Law greatly enlarged both the power and the jurisdiction of the FTC. 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. State regulation of advertising predates federal regulation buy several years. -split Using The advantages of the *trade regulation rules (TRRs)* are numerous. D. Federal Trade Commission The reason a magazine such as 'Good Housekeeping' regularly tests products and offers a "seal of approval" is to: A. are used to regulate public service announcements. Bureau of Compliance *Corrective Advertising*is a highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient. \end{array}\right] Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. D. Cease-and-desist orders Injunctions: False. Failure to abide by the provisions of a litigated order can result in the advertiser facing a severe civil penalty, as much as $10,000 per day. The test is whether the consumer's interpretation or reaction is reasonable. C. NAD/NARB. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. It is not uncommon that an advertisement is ___________ because of economic interests. -name B. 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. Injunctions The judge can uphold the complaint or reject it. WebList the 7 primary government agencies regulating advertising and their area of advertising regulation. The basis of the program is simple: The commission asks advertisers to substantiate claims made in their advertisements. Nestl claims "Nestl makes the very best chocolate," Snapple advertises that its beverages are "made from the best stuff on Earth," are all examples of: * E. McDonald's. D. Federal Trade Commission Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires. Advertisers can still litigate the question, challenge the trade regulation rue, seek an appeal in court and so forth. demonstrate full and truthful disclosures to the public. Significant omission of important information D. Distilled Spirits Council. Independent Business Alliance 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. spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. B. National Advertising Review Board C. The media can refuse to accept individual ads they find offensive or objectionable. -may raise premiums at anytime -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. -establish continuing education requirements Which of the following statements about self - regulation by media is true? C. Council of Better Business Bureaus The guides are of great benefit, however, to honest advertisers who seek to stay within the boundaries of what is allowable under the law. -Missouri law banned billboards about SOBs to take down these buildings The regulation of deceptive or untruthful advertising is a difficult task maintained by the advertising industry, the mass media and governmental agencies. Consent Decrees -This act makes it illegal for competitors to make agreements with each other that would limit competition. -insurance prospectors The agency believes the typical reasonable consumer does not take such claims seriously and thus they are unlikely to be deceptive. D. Bureau of Reconstruction This the First mendment plainly permits." What message, either explicitly or implicitly, does the ad convey? -Sellers invested huge sums in building product images and establishing product claims. *Functioning Return Address and Opt-Out Mechanism* *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. Under the commercial speech doctrine and the Central Hudson test, the government may prohibit advertising (1) that promotes an unlawful activity or (2) that is misleading or untruthful. 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. Finally, via TRRs the FTC is able to deal with problems more evenhandedly. Substantiation 3. Postal Service regulations. 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. 1st amendment doesn't protect false/misleading ads or ads for unlawful goods/services. The courts have extended First Amendment protection to: 5. 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 fact, the FTC makes it clear that an agency has "a duty to ascertain the existence of substantiation for the claims which it makes." -waiting period 30. When the FTC recovers money against a company for false or misleading advertisements, who gets to keep it? Information from the cerebral cortex, substantia nigra, and thalamus intralaminar nuclei all enter the _________. Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. D. National Association of Attorneys General -receive matching funds to expand public assistance programs 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? B. FTC Improvements Act C. Affirmative Disclosure B. 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 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." b. product safety. agreed, observing that the adult struggles to attain intimacy and WebEach order and agreement is tailored to the individual industrys needs. Making a claim without substantiation. Most commercials once rejected cannot be rerun. *Consumers, as opposed to competitors, have a much more difficult time in maintaining an action for false advertising. 1. *Accurate information in the text may not remedy a false headline. Refusing to sign the agreement will result in litigation and publicity. 3 sections of the act expanded the remedies the FTC can use against deceptive advertising. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: A. WebRegulatory concerns never play a major role in the advertising decision-making process. A. order the company to stop running the ad. Commercial Speech Doctrine. * Such an agreement saves the advertiser considerable legal haste, publicity and money, all especially desirable since the advertising campaign is over or almost over. -company's true corporate name But if the commissioners support an administrative law judge's ruling against an advertiser, the order becomes law after it is finalized by an appellate court. E. Freedom of press. C. Bureau of Alcohol, Tobacco and Firearms. E. peripheral importance. 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: C. any type of comparative advertising. C. Godiva claims that it makes the finest chocolates in the world. Almost everyone who uses electronic mail has received unsolicited commercial advertising known as "spam." The commission evaluates the entire advertisement when examining it for misrepresentation. [4320]+[wyxz]=[2035]. E. contests and sweepstakes, Marketers' use of trade allowances is controlled by the ____, which prohibits price discrimination. CARU determined the packaging might mislead children into believing that they could make the dolls duplicate the poses featured on the packaging when, in fact, they could not do so. 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. False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. A. The substantiation does not have to be in the ad itself. Telephone Consumer Protection Act of 1991. which of the following statements is true? 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. -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 In most cases they probably will not go to that expense. E. Treasury Department, Which of the following agencies is responsible for tax collection for the liquor industry? What happens to an advertiser who signs a consent decree, then violates the provisions of the decree? D. is more stringently self-regulated than any other medium. Substantial Omission \end{array}\right]+\left[\begin{array}{ll} The FTC's guides don't have the force of law; in other words, a business that violates a provision of a guide is not automatically guilty of false advertising. Tags: Question 34 . The advertiser may appeal this decision in a federal court. period of time after the premium is due but the policy remains in force. A. U.S. Court of Appeals can review all commission order.s -statements that dividends are not guaranteed -budget is $300 million 48 of those cases were resolved with court orders that cumulatively required payment of nearly $21 million in civil penalties and $12 million in redress or disgorgement of profits. B. Lanham Critics of the FTC's ad substantiation program argue that: Freedom to advertise D. false substitution In brief, Roomates.com was more akin to a publisher or speaker rather than a mere conduit for the information that it posts. -never protection of proceeds, there is protection of proceeds against the insured's and the beneficiary's creditors, which of the following is MANDATORY coverage for all group health care service contracts? May also argue the claim in question is not material, and therefore will not impact a purchasing decision. -Maybe 3,000 SURVEY . Staff attorneys at the FTC will issue a complaint against the advertiser, and a hearing will be held before an administrative law judge. 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 ________________________. D. deception Marketing Agreements are only binding for those handlers that sign the agreement. after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? An exaggeration extended to the point of outright spoof that is obviously not true. -The size of damage awards skyrocketed. The use of mock-ups and props to demonstrate visually a quality that is material to the sale of a product. demonstrate full and truthful disclosures to the public james is the insured on a life insurance policy where his age was misstated on the Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends. B. affirmative disclosure There must be a representation, omission or practice that is likely to mislead the consumer* Direct-response advertisers that use the U.S. mail to deceive consumers by marketing get-rich-quick schemes fall under the jurisdiction of the: In addition, the matter in the spam e-mail message that is initially viewable when it is opened cannot include any sexually oriented material. E. Network standards have become more stringent in response to competition from independent and cable stations. WebI. Use the following information. B. speech that promotes a commercial transaction. In the past the FTC would have to issue a complaint against each advertiser and in each case prove that the statement rule that declares that claims of product superiority based on excessive dosage of vitamins and minerals are false and misleading. E. remuneration. E. Federal Communications Commission, D. National Association of Attorneys General. There is a substantial state interest to justify the regulation. D. Regulations developed by a consortium of trade associations III. Independent Business Alliance E. Substantiation, Under the _____ Doctrine, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking. *, *National Advertising Division (NAD)* permitted consumers to sue manufacturers with whom they had no contractual relationships. The division of Consumer Protection The students had a right, in other words, to not speak. -to tell them what they can and can't do 3. -Usually for campaigns B. puffery. C. puffery; illegal E. The four major television networks. ) C. National Association of Broadcasters -insured employee B. provides for the review and evaluation of all child-directed advertising. -dental care. 4 & -2 \\ E. are issued by the National Association of Attorneys General. B. E. Consent orders lead to excessive adverse publicity. a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. 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. D. Lanham Act. E. advertising substantiation. It is very difficult for non competitors to gain standing to sue for false advertising under the Landham Act. WebLaws must be static and unyielding in order to provide stability for a society. Will you buy the book? E. Promotional Products Marketing Association. -person's health claim Information, Health Chapter 10 Exam - NJ Laws and Rules, Health Policy Provisions, Clauses & Riders, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Critical Point Personal hand hygiene, garbing. But if time is the greatest enemy, publicity is the FTC's strongest ally. 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. C. if the ad uses puffery. E. a commercial is rejected at the idea generation stage. D. fairness. C. is important to consumer and would likely have an effect on the purchase decision. A. cease-and-desist order B. B. Centre for Electronic Technology. B. _____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices. Presence of superlative words in the advertisement 0 & 5 The FTC prohibits this; Lures consumers into a store who are in the market for an item seen at one price. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? -is only available to insurance companies C. affirmative disclosure A life insurance policy sold in Louisiana can be contested by the insurer only during the first ____ years of the contract. 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 Q. E. advertisers, government, and the television networks. B. The merchant then claims the product is not available at the price but another model can be purchased at a high price. The appellate court, however, rejected the unerinclusiveness argument, writing that "First Amendment challenges based on under inclusiveness face an uphill battle in the commercial specs context. B. puffery. -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: A. D. multiple interpretations. D. Electronic Retailing Self-Regulation Program (ERSP). E. U.S. Department of Welfare. The advertiser can refuse to sign the agreement. The hearing is a lot like a trial, only more informal. Federal Trade Commission C. children, advertisers, and agencies. Federal Communications Commission For some specialized products or services, additional rules may apply. Which of the following statements is true about National Advertising Review Council (NARC)? -$500,000 The advertiser can agree to sign the agreement, and the commissioners vote to accept this agreement. 1. Corrective advertising In a unanimous opinion, the appellate court wrote that "the government has assured substantial interests to be served by the do-not-call registry (privacy and consumer protection), the do-not-call registry will directly advance those interests by banning a substantial amount of unwanted telemarketing calls, and the regulation is narrowly tailored because its opt0in feature ensures that it does not restrict any speech directed at a willing listener. Information Technology The FTC does not presume that the claims are false or misleading. A. 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. D. limits on the amount of television advertising per hour targeted to children are eliminated. SUMMARY: E. puffery, unethical. The signing of a consent order is an admission of guilt by the advertiser. 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. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a More part of the new law is that the endorsers may also be subject to liability for their statements. -insured 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. C. consumers recognize puffery and don't believe it. -What's happening now needs to stop immediately Learn about antitrust or competition laws. Finally, in 2012, the FTC offered this sage but simple piece of advice to anyone receiving a robocall: "Hang uo the phone. Although CAN-SPAM does not provide a civil remedy for those of us who receive spam, a provider of Internet access service that is adversely affected by spamming activities on its service may bring a civil lawsuit against the spammer in any federal court in the U.S. seeking both a permanent injunction to stop the spamming and monetary damages for harm caused by the spam. Advertisers claimed the Registry violated their First Amendment rights to free speech. Under this policy, express substantiation claims, such as "doctors recommend" and "specific tests prove," require the level of proof advertised. c. competence. * Information Technology Act (ITA). c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. C. there has been material injury to reasonable consumers. A. consumers cannot distinguish between factual information and puffery. Professional Development. D. puffery is illegal. Significant omission of important information. 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. If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB. Voluntary agreements by advertisers to terminate a deceptive advertisement Most states today have such laws. A. Federal Trade Commission -premium paid, an insurer has the right to recover payment made to the insured from the negligent party. -is not available to the public *Recently some consumer class-action lawsuits have netted huge settlements.*. Typically the advertising campaign is already over. E. advertisers who do not want to be self-regulated. _________________________: Spam senders are barred from transmitting commercial e-mail messages to any recipient after 10 business days following the exercise by the recipient of his or her right to opt out of future commercial e-mail messages. E. Competitor Trademark Act, The _____ closed a loophole in the Lanham Act and facilitated the ease with which one company can sue a competitor for making false advertising claims about the first company's products. B. C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. National Advertising Review Board "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. D. Sherman Antitrust Act B. -12 different locations across nation E. the consumers may sue the company for non substantiation of the ad. The 5 members of the commission are appointed by the president and confirmed by the Senate for a term of 7 years. If a participant is required to give up something of value in order to participate in a game or sweepstakes, then _____ is present, and the promotion is considered a lottery. Section 43(a) creates a legal cause of action for false advertising. Litigated orders 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. 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. -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. A. enhance the credibility of the publication. The basic defense against any false advertising complaint is truththat is, proving that a product does what the advertiser claims it does that it is made where the advertiser says it is made, or that it is as beneficial is it is advertised to be. If this happens the order is published and made final in 60 days. 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.
Baton Rouge Assistant District Attorney,
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Articles A
