A. deception; legal -protection of proceeds against the beneficiary's creditors Food and Drug Administration. B. 1. according to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's adjusted gross income. A. The media cannot refuse to accept advertising for an entire product class such as hard liquor. D. Most advertising cases investigated by the NAD are resolved without being sent to the NARB. The FTC alleged that when tickers went on sale February 2, 2009, for Bruce Springsteen concerts in May and June that year, Ticketmaster displayed a "No Tickets Found" message on its Web page to consumers to indicate that no tickets were available at that moment to fulfill their request. * A. employment, national security, and trade. Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. Guides or advisory opinions that attempt to outline in advance what advertisers may say about a product D. Robinson Patman 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. D. is more stringently self-regulated than any other medium. In addition, many states have what are called unfair and deceptive acts and practices statutes, which give consumers the right to seek a judicial remedy in false advertising cases. Cease-and-Desist Orders -brokers and consultants C. not requiring consumers to make a purchase as a condition for entering. The agency has never outlined a hard-and-fast policy regarding when corrective advertising will be used. First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. B. The advertiser must have evidence to substantiate its claims if challenged. 4. B. A. *, *National Advertising Division (NAD)* * A. deceptive advertising. *Functioning Return Address and Opt-Out Mechanism* A. enhance the credibility of the publication. If the advertising campaign is successful and long running, a residue of misleading information remains in the mind of the public after the offensive advertisements have been removed. In doing this, the advertiser makes no admission and the agency no determination that the claim is deceptive. Professional Development. C. National Association of Broadcasters -human resource department *A First Amendment right not to be compelled by the government to speak has been recognized by the Supreme Court in some situations. an accident and health insurer just received written proof of loss from one of its insureds. C. Bureau of Alcohol, Tobacco and Firearms The regulation of deceptive or untruthful advertising is a difficult task maintained by the advertising industry, the mass media and governmental agencies. -Trade Regulation Rules. Congres held hearings on the matter. 1) Federal Trade Commission (FTC) (most active) controls unfair methods of The merchant then claims the product is not available at the price but another model can be purchased at a high price. C. Bureau of Alcohol, Tobacco and Firearms The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are: -lengthy elimination period, premium mode is a term used to describe the 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? -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. *In addition to the federal CAN-SPAM Act, some states have their own statutes targeting such e-mails.*. B. FTC Act a. affiliation. *Attorneys for the FTC can seek these restraining orders in federal court. D. is concerned with the misrepresentation of premiums when used in sales promotions. 30. Free Speech Matrix If the advertiser loses this final appeal before the commissioners, he or she can appeal the litigated order in federal court. B. consent order Sometimes the owner of the medium thinks the product that is being advertised is offensive, like NC-17 or adult movies, or condoms. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. B. speech that promotes a commercial transaction. A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants. WebMarketers should monitor developments outside a firm's control in order to detect and respond to threats and opportunities. d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. D. Cease-and-desist orders C) It involves underpricing products so that companies make larger sales. E. consumers believe in puffery. -short-term disability Twisting is best defined as. voting power on major issues and ownership in a portion of the company. the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the banking and insurance commissioner. A. -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: Implied uniqueness 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." Telephone Consumer Protection Act of 1991. WebAdvertising is not equally productive for firms in every market type. B. Endorsements must reflect honest opinions, findings, beliefs or experiences of the endorser. In other words, the creators of ads should be wary of creating false implications. The FTC does not presume that the claims are false or misleading. The representation, omission, or practice must be "material" such that it is likely to influence the purchasing decision. Which of the following statements about advertising by attorneys, dentists and physicians is true? B. governance, compliance, and cooperation. A. U.S. 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. E. distribution, distillation, and diversity. D. a commercial is approved at the storyboard stage but then is rejected after it is produced. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: 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. In 2007, the FTC requested public comment on its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," and proposed several minor revisions to its guides, including, among others, clarification that when determining whether statements in an ad constitute an endorsement, it does not matter whether the statements made by an endorser are identical to or different from those made by the sponsoring advertiser. This requirement falls under the FTC's _____ requirement. In general, advertisements of alcoholic products must be truthful and without deception. D. deception 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. 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 ___________________. 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." Spam also represents an economically efficient and inexpensive way of marketing one's product or service. -producer It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. E. U.S. Department of Welfare. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. Substantiation -Plaintiffs in Lanham Act cases had traditionally sought only to stop the competitor's advertising claims. At this point either side can appeal to the commissioners to overturn the ruling of the judge. 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). Central Bank advertises free checking with a minimum balance of $1,000. WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. In 2004 the U.S. Court of Appeals for the 10th Circuit upheld the National Do not Call Registry in Mainstream Marketing Services, Inc. v. Federal Trade Commission. *2. E. Consent orders lead to excessive adverse publicity. D. The division of Advertising Practices -Sellers invested huge sums in building product images and establishing product claims. *10-Day Prohibition Period* E. unsubstantiated order. * -protections of proceeds against the insured's creditors The advertiser can agree to sign the agreement, but the commissioners reject it. C. affirmative disclosure _________________________: 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. -set sales quota -Comparative advertising, in which an advertiser not only promotes his or her own goods but tends to disparage the product made by a competitor, became more common. D. discounts The use of mock-ups and props to demonstrate visually a quality that is material to the sale of a product. No. *Qualifying disclosures must be legible and understandable, the FTC has ruled. 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. 1. A. C. broadcasters are required to provide time for opposing viewpoints on important issues. 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. _______________________: Commercial e-mail messages that include "materially false or misleading" header information or deceptive subject lines are prohibited. A. Federal Trade Commission * -It became somewhat easier for plaintiffs to win Lanham Act false advertising suits. D. advertisers who want to use misleading wording in their ads. States have what are called unfair and deceptive acts and practice statutes which give consumers the right to seek a judicial remedy in false advertising cases. -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. 2 & -3 \\ Misleading comparative claims. Almost anyone who has watched television advertisements during the past decade or so is familiar with trademarked slogans such as "Beef. Significant omission of important information If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to:
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