advertising regulations exist in order to quizlet

Which of the following statements about a consent order is true? Industry guides apply only to prospective advertising campaigns, events that have not yet occurred. *In addition to the federal CAN-SPAM Act, some states have their own statutes targeting such e-mails.*. E. puffery, unethical. D. false substitution There was time when competition between businesses hardly existed. D. Bureau of Reconstruction -premium past due d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. 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. 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. -payor benefit 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.". which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? This remedy is infrequently used. B. D. NARC can handle cases at lower cost as compared to a court. If this happens the order is published and made final in 60 days. 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. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. Food and Drug Administration -if you send spam (unsolicited messages) there must be an opt-out option National Association of Broadcasters Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. A. conducting the contest or sweepstake only at the regional level and not national level. what amount will be paid under a policy where the insured misstated his/her age? C. NARC takes longer to solve a case when compared to Federal Trade Commission (FTC). C. Electronic Retailing Agency. D. Wheeler-Lea Amendment 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. D. publishing the odds of winning. The judge works within the FTC and officiates at these hearings. 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 ________________________. E. Clayton Antitrust Act, The Bureau of Alcohol, Tobacco, and Firearms (BATF) is an agency within the ____. E. National Association of Broadcasters. A. FTC Act C. a commercial is rejected for reasons such as sex and politics. govt may regulate -beneficiaries Craigslist, in contrast, did not solicit any content but me merely provided a forum for ads. This is an example of: C. Robinson Patman Act No more than 3 of the commissioners can be from the same political party. It is also important to remember that an ad may mislead because it omits material information. The agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. *Child Advertising Review Unit (CARU)*. It defines an endorsement as any advertising message (including things such as verbal statements, demonstrations and depictions of the name of an individual or the name or seal of an organization) that consumers likely are to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser. Unfairness The level of respect owed to another is based on C. puffery. The advertiser is not responsible for every interpretation or behavior by a consumer. Advertising Practices found to be unfair or deceptive 2. WebSection 18 of the FTC Act, 15 U.S.C. C. Wheeler-Lea Amendment B. refer the case to an industry trade association. 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 Fair Housing Act is regularly enforced against print newspapers that run such discriminatory ads. -does not include political calls or spam artists A. the fairness doctrine. 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. In April 2013, the U.S. Supreme Court declined to hear the airlines' appeal in the case. When the FTC recovers money against a company for false or misleading advertisements, who gets to keep it? E. remuneration. Advertisers claimed the Registry violated their First Amendment rights to free speech. -Does the advertising message in question concern an unlawful activity or is it misleading? -1200 employees In 2012, the FTC filed 62 actions in federal court and obtained 94 orders for redress, disgorgement of profits and permanent injunctions against individuals and businesses. *Considerable pressure is placed on the advertiser to agree to a consent order. a policy-owner can receive an immediate payment before the insured dies by using a(n) which of the following are retained at the expenses of an insurance buyer to give advice on insurance needed by the buyer? -insurance prospectors Does this message injure the plaintiff? The FTC was created by Congress in 1914 to police unfair methods of business competition. 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." C. are issued by the Federal Trade Commission. C. selective retention C. FCC Act For a long time, advertising was ______ protected by the First Amendment. B. a superlative; illegal -But judges have said past facts can be misleading, It's not nearly as easy to prove "substantial state interest" in commercial speech than porn and obscenity. A. exchange All of these are included in the DTPA under trade and commerce . Nearly a century later, the FTC today is the only federal agency with jurisdiction to protect consumers and maintain competition in broad sectors of the economy. But Roommates.com reached the opposite conclusion. D. an affirmative disclosure. Using Postal Service Typically the advertising campaign is already over. 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. 5. -agents. 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." 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. A. Corrective advertising Businesses must have evidence to back up their claims. D. NARC can handle cases at lower cost as compared to a court. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: Congress shall make no laws "abridging the freedom of speech, or of the press", Criteria for Judging whether Prior Restraint is Justified. C. U. S. Postal Service Omitting a needed qualification. *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. E. Corrective advertising, Under the FTC's program of ____, Novartis Corporation was required to run advertising informing consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain. Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. E. Standards and Practices Division, Which of the following media has the most stringent review and approval process for advertising? Implied uniqueness Making a claim without substantiation. National Advertising Division During fiscal year 2013, the FTC received more than 3.7 million complaints regarding alleged violations of the registry, down from about 3.8 million in 2012. Cease-and-desist orders: * Advertisers need to take special care when dealing with testimonials and endorsements. -name C. not requiring consumers to make a purchase as a condition for entering. D. Fairness -incontestable period Guidelines developed by the FTC are used by state courts to administer regulations. 4. A. 6. -protections of proceeds against the insured's creditors E. is experiencing a tightening of the rules concerning the rating system used for commercials. -insurance company, an insured's status under social security can be described as.. There has also been a rapid increase in lawsuits brought by advertisers against one another under Section 43(a) of the Lanham Act. E. National Association of Broadcasters, C. American Association of Advertising Agencies. C. affirmative disclosure. B. provides for the review and evaluation of all child-directed advertising. she would like to borrow $15,000 against the cash value. 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. 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 National Advertising Division (NAD) and Child Advertising Review Unit (CARU). (c) How do we test a binary predictor for significance? Policies and procedures for self-regulation of advertising industry are established by the ____. A. deceptive advertising. expression related solely to the economic interest of the speaker and its audience, or proposes a commercial transaction. US Postal Service (USPS) Responsible for regulating direct mail advertising and Instead, the FTC enforces the law, with help from the Justice Department and the FBI. 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. d. adopted the principle of strict liability. A. commercial speech. Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. A. Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. C. National Advertising Review Board B. require an advertiser to run comparative advertisement. an amount the premium would have purchased at the correct age. -protection of proceeds against the beneficiary's creditors National Advertising Review Board D. Most media accept any advertising they receive since advertising is their major source of revenue. Sellers and telemarketers that transmit such messages to consumers that haven't granted permission to accept them face penalties of up to $16,000 per call. But if time is the greatest enemy, publicity is the FTC's strongest ally. D. advertisers, agencies, and the media. Voluntary agreements by advertisers to terminate a deceptive advertisement What is Parramore's cash conversion cycle (CCC)? An appeal of an adverse ruling by a circuit court can be taken to the Supreme Court, but only if certiorari is granted. In other words, commercials should makes ear what the typical results are (an, of course, have prior substantiation for such claims); merely stating that the results of the endorser are not typical will not cut it. The federal law that made this suit possible was the _____ Act. -is made available after paying a $50 fee. Which of the following statements concerning advertising by attorneys is true? WebStudy with Quizlet and memorize flashcards containing terms like Any administrative action taken against a producer MUST be reported to the director within ___ days after the final disposition., How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?, According to the Affordable Care Act, new health Insurance Injunctions: Since that time the commission has developed into one of the nation's largest independent regulatory agencies. Advertising claims that significantly involve health and safety are usually presumed to be material. Although truthful advertising for lawful goods or services receives some First Amendment protection, the extent and scope of that protection is more limited when compared with ___________________. The appellate court reasoned that Craigslist "is not the author of the ads and could not be treated as th 'speaker' of the posters' words." Information Technology Act (ITA). 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). _____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices. -Lawyers are only allowed to state past facts, they can't promise future things If an ad represents, wither directly or by implication, that the endorser is an expert, then the endorser's qualifications must in fact give him or her the expertise that he or she is represented as possessing with respect to the endorsement. *Accurate information in the text may not remedy a false headline. Implying a benefit that does not exist. B. consideration Trade Regulations Rules: To implement this provision, the FTC in 2004 adopted a rule requiring spammers who send sexually oriented material to include the warning "SEXUALLY-EXPLICIT:" in the e-mail subject line or face fines for violations of federal law. 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. B. C. Federal Communications Commission First anti-trust law was passed in 1890: the Sherman Act. ____, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. The media must accept all advertising they receive because of First Amendment that guarantees the freedom of speech. 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. The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. B. deception E. the burden of proof for advertising claims lies with the Federal Trade Commission. which of the following is CORRECT regarding the death benefit amount? an insurance company needs to obtain personal information from a third party concerning an applicant. E. peripheral importance. Other times the ads themselves might be regarded as tasteless, like an advertisement for clothing in which then models are scantily dressed or posed erotically. The registry, however, would also prove controversial. 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. -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. C. there has been material injury to reasonable consumers. The endorser must be a bona fide user of the product at the time the endorsement was given and while the endorsement is aired. D. limits on the amount of television advertising per hour targeted to children are eliminated. 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. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. An exaggeration extended to the point of outright spoof that is obviously not true. D. misrepresentation D. Cease-and-desist orders The 7th Circuit, however, held that Craigslist was protected by Section 230 of the CDA, which generally shields online service providers from liability when they are mere conduits (rather than publishers or speakers) for information posted by third parties. -short-term disability The following are all instances in which a court can overturn an FTC ruling: (1) "convincing evidence" that the agency made an error in the proceedings, (2) no evidence to support the commission's findings, (3) violation of the Constitution-for example, the agency did not provide due process of law, (4) the action goes beyond the agency's powers; (5) facts relied on in making the ruling are not supported by sufficient evidence, and (6) arbitrary or capricious acts by the commission. Trade regulation rules that can be issued to regulate advertising throughout an entire industry. is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. -Plaintiffs in Lanham Act cases had traditionally sought only to stop the competitor's advertising claims. To be considered commercial speech, it only has to meet 1 of the 3 questions. b. identity. 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. Which of the following statements is true about National Advertising Review Council (NARC)? E. corrective advertising, The _____ is a federal agency that was founded in 1934 to regulate broadcast communication that include the radio, television, telephone and telegraph industries. E. Wheeler-Lea Amendment, Under the _____ passed in 1991, telemarketers must follow a complex set of rules developed by the Federal Communications Commission. -What's happening now needs to stop immediately -an advertiser has already put out a campaign and the FTC finds out later; most common * E. lodge a class action suit for customers who have been in some way negatively affected by the ad. This is a written agreement between the commission and the advertiser in which the advertiser agrees to refrain from making specific reduct claims in future advertising. A. is generally used for hard liquor advertising. E. if the ad runs for more than six months. ) A. (a) What is a binary predictor? is using ____, which is a(n) ______ form of advertising. E. injunction. 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. Postal Service. right to transfer ownership and dividend entitlement. A. uses puffery. what kind of rider is this? C. Consumer Protection C. Affirmative Disclosure SUMMARY: -existing producers A. To avoid having this promotion classified as a lottery, Champion should: Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. Bureau of Economics 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 ____. Substantiation An advertiser seeking redress under this federal law can seek to stop the misleading practice and/or win money damages. The reason a magazine such as 'Good Housekeeping' regularly tests products and offers a "seal of approval" is to: because the company is in weak financial condition, the treasurer instructs the company claims manager to delay recording several large claims settlements. D. Vision Council of America * The representation, omission or practice must be material. -conduct investigations 1) Federal Trade Commission (FTC) (most active) controls unfair methods of Direct Marketing Reform Act. B. D. Lanham Act (you have to scroll down to be able to see it) -CAN-SPAM Act D. corrective advertising. If an advertiser disagrees with a NAD or CARU decision, it can appeal to the _______________________________. E. are issued by the National Association of Attorneys General. Federal Trade Commission C. Godiva claims that it makes the finest chocolates in the world. B. Postal Service -company's true corporate name 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. -joint Another word for advertisement is _____________________. B. Guides or advisory opinions that attempt to outline in advance what advertisers may say about a product The Federal Trade Commission takes the position that: C. Council of Better Business Bureaus D. FDA Act In general, advertisements of alcoholic products must be truthful and without deception. an advertiser promotes his/her own good and tends to pick holes in a competitor's version of the product. The order is published and made final in 60 days. _______________________ (_____): 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. Remedies for deceptive and unfair advertising, Require Substantiation -whether a spokesperson is paid. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? The law also gave the agency important new power. Distribution . This is known as: These trusts were monopolies; they combined all competition into one company so they could control the price. D. Bureau of Consumer Protection -very easy for FTC to obtain E. NARC is a government agency regulating advertising agency. 1. c. secured B. governance, compliance, and cooperation. Unsolicited junk fax ads and telemarketing calls to consumers who do not want to be called are banned under the: * Advertising which praises the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally stating no specific facts. -covered employee is terminated for gross misconduct, a covered employee who is terminated for gross misconduct. -jurisdiction is not particularly limited B) It can be profitably used when the product's quality and image support its price. C. affirmative disclosure. *2. D. before the ad appears. In this case the commission can issue an order, usually called a *litigated order,* to stop the particular advertising claim. A. unfairness -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? 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. The ___________________________________ is the primary agent of the government, but clearly not the only agent. Falsely implying that a product benefit is unique to a brand. Better Business Bureau D. cease-and-desist C. puffery legitimization 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. A. U.S. D. comparative advertising. the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the banking and insurance commissioner. B. negative option Since these firms have differentiated products, they 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 Decrees D. Food and Drug Administration WebEach order and agreement is tailored to the individual industrys needs. Under the commercial speech 3. A. Wheeler-Lea Amendment A. 3) The advertiser can refuse to sign the agreement. Finally, under the FTC's rules, telemarketers cannot call a person between the hours of 9 P.M. and 8 A.M. unless the person has given prior consent to such late-night, early-morning calls. D. Robinson Patman As originally written, the law prevented only one advertiser from making false statements about his or her own goods. They are: The burden is on the government to disprove the advertiser's claim. What is the role of the leader and follower in the leadership process? -No ad containing an offer to sell a product should be published if the offer is not a bona fide effort to see that product. There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. C. Bureau of Alcohol, Tobacco and Firearms 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. In fact, the only lawful sales robocalls are ones where consumers have stated in writing that they want to receive them from the company in question. 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. Federal Trade Commission's (FTC's) _____ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? It applies to "commercial electronic mail messages" that have as their "primary purpose" the "commercial advertisement or promotion of a commercial product or service." C. not requiring consumers to make a purchase as a condition for entering. C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. All the commission must prove is that the advertiser had actual knowledge of the trade regulation rule, or "knowledge fairly implied from the objective circumstances.") E. fraud, Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception? Corrective advertising, in which an advertiser must admit in future advertisements that past advertisements have been incorrect False. D. FDA Act -Attempts by competitors to undermine or dilute these images or claims were regarded more seriously than in the past. B. FTC Improvements Act A. "individually identifiable health information" ? E. unsubstantiated order. -policy owner _________________________: The act proscribes as "aggravated violations," warranting additional civil and commercial penalties, (a) e-mail "harvesting" or the knowing use of harvested addresses, (b) the automated creation of multiple e-mail accounts used for commercial e-mail, and (c) the use of unauthorized relays for commercial e-mail messages. WebWhich of the following industries are significantly influenced by laws regulating product purity and labeling? One commissioner is chosen by the president to be the chairman of the FTC. That obviously can add up very fast. C. Corrective advertising 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. -FTC says just prove to us this is real; they should be coming from the standpoint it is truthful (but probably not) A. Such claims are referred to as _________________ and include representations that a store sells "the most fashionable shoes in town" or a cola drink is "the most refreshing drink around." "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. A. -Usually for campaigns -method of payment Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising.

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