D. discounts It's What's for Dinner" and "Got Milk?" One of the most pervasive and annoying forms of advertising today is on the ________________. C. a cease-and-desist order. -fully insured C. Bureau of Alcohol, Tobacco and Firearms Under the corrective advertising scheme, the FTC forces the advertiser to inform the public that in the past it has not been honest or has been misleading. D. Wheeler-Lea Amendment B. refer the case to an industry trade association. D. Bureau of Alcohol, Tobacco, and Firearms A. Weba. 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.". 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. -home address WebUnder the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. 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.") SUMMARY: *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. Claims about durability, performance, warranties or quality have also been consider material. The advantages of the *trade regulation rules (TRRs)* are numerous. C. Department of Commerce (DOC) the reinstatement provision in a health insurance policy is in which of the following situations would the insurer be liable for a loss? A. Lanham Act Federal Trade Commission Ticketmaster and its affiliates agreed to refund some concertgoers to settle FTC charges that they used deceptive bait-and-awitch tacts to sell tickets. B. 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. -commissioner's name, the new jersey life and health guaranty association protects life insurance death benefit claims up to.. They are: In concluding that the registry did not violate the First Amendment free speech rights of telemarketers, the appellate court applied the commercial speech doctrine and Central Hudson test. D. Cease-and-desist orders Native Advertising/sponsored posts - have come on the rise; it's important to be aware of The judge can uphold the complaint or reject it. Advertising by attorneys is legal in the entire United States. The substantiation does not have to be in the ad itself. an accident and health insurer just received written proof of loss from one of its insureds. In most cases they probably will not go to that expense. 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. The representation, omission or practice must be material. Law greatly enlarged both the power and the jurisdiction of the FTC. -whether a spokesperson is paid. B. Centre for Electronic Technology. C. Cease-and-Desist D. NARC can handle cases at lower cost as compared to a court. B. 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. B. a commercial that was rejected at the storyboard stage is accepted at the final stage. C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification. D. an affirmative disclosure. 2 & -3 \\ There Which of the following statements about advertising by attorneys, dentists and physicians is true? -divorced spouse of employee E. Advertising substantiation. 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. A. FTC Act "individually identifiable health information" ? -Lawyers are only allowed to state past facts, they can't promise future things D. Federal Trade Commission If a case is not resolved to its satisfaction, the NARB has the power to order an advertiser to stop running its ads. WebWhen the Commissioner of Insurance requests a producer's business records, the must be produced. 7. 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. Most states today have such laws. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. Craigslist, in contrast, did not solicit any content but me merely provided a forum for ads. E. Federal Trade Commission (FTC). With the rapid growth of comparative advertising (in which the advertised product is compared to a competitor's product), more and more advertisers have taken competitors to court over what they claim is deceptive and false advertising. 3. Advertisers don't like the publicity that accompanies a charge of false advertising. Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. A. Under this policy, express substantiation claims, such as "doctors recommend" and "specific tests prove," require the level of proof advertised. D. is more stringently self-regulated than any other medium. Making a claim without substantiation. Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. A. cease-and-desist. These trusts were monopolies; they combined all competition into one company so they could control the price. In particular, several telemarketing agencies filed lawsuits in 2003 against the FTC, alleging that it was beyond the scope of the FTC's jurisdiction to adopt the National Do Not Call Registry and claiming that the registry violated the First Amendment right of free speech of advertisers who use telemarketing. C. National Association of Broadcasters 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: which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? A. Wheeler-Lea Amendment The courts have extended First Amendment protection to: D. Federal Trade Commission E. Telephone Consumer Protection Act, ) The Federal Trade Commission and U.S. *To illustrate this point, Scalia noted that a person may not opt out of paying income taxes just because he or she soesn't agree with how the govenrment is spending the money. Voluntary compliance: E. Clayton Antitrust. 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. B. require an advertiser to run comparative advertisement. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a -guaranteed insurability rider, the commissioner may The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes. -Advertisers cannot engage in practices that discourage purchase of advertised merchandise as part of a bait scheme to sell other merchandise, such as refusing to show or sell the product offered in accordance with the terms of the offer. In addition, the matter in the spam e-mail message that is initially viewable when it is opened cannot include any sexually oriented material. -establish continuing education requirements govt may regulate D. advertisers who want to use misleading wording in their ads. No more than 3 of the commissioners can be from the same political party. _______________________: Commercial e-mail messages that include "materially false or misleading" header information or deceptive subject lines are prohibited. spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. Is this message false or misleading? Cease-and-desist orders: -receive matching funds to expand public assistance programs D. a commercial is approved at the storyboard stage but then is rejected after it is produced. The advertiser must have evidence to substantiate its claims if challenged. 3. C. According to the Federal Trade Commission consumers believe in puffery. The Better Business Bureau guidelines B. selective exposure. In an article on the CAN-SPAM Act, attorneys Glenn B. Manishin and Stephanie A. Joyce identify 5 specific components of the law: Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? 1. B. The FTC program that requires an advertiser who is found guilty of false or misleading advertising claims to run ads to rectify the situation is known as: How many ads are in your general vicinity each day? -Also court said this case was "in the public interest". A. advertising aimed at children is prohibited. Until the bill was signed, the FTC was limited to dealing with unfair and deceptive practices that were "in commerce." 3. * A. Under the FTC's rules, several key points emerge that must be understood: C. refer the matter to an appropriate government agency. Vision Council of America The FTC was created by Congress in 1914 to police unfair methods of business competition. Determining what constitutes commercial speech, however, is not easy. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? -no interest will be charged on loan balance The new law permits state and local governments to: -insurance companies, policy owners from misrepresentation and loss of benefits, advertising material for a life insurance policy does NOT need to contain which of the following? -all serve 7 terms US Postal Service (USPS) Responsible for regulating direct mail advertising and Importantly, under the doctrine of "falsity by necessary implication," a company's claims about particular aspects of its product may necessarily imply more sweeping claims about that product, and these implied claims also may be literally false within the meaning of the Lanham Act. Food and Drug Administration One Bratz doll, for example, was shown standing on one leg with her right knee bent at about a 30-degree angle and arms outstretched. C. Godiva claims that it makes the finest chocolates in the world. "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. This is known as: The companies that received the warning letters had 15 working days to inform the FDA of the steps that they were or would be taking to correct their labels. C. Affirmative Disclosure A man owns an Audi, a Ford, and a VW. 1. Trade Regulations Rules: The burden is on the government to disprove the advertiser's claim. An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. D. The Supreme Court has ruled that professionals such as attorneys, dentists and physicians have the right to advertise. A. A. enhance the credibility of the publication. -completely insured, joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Better Business Bureau E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? 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. E. Trade Regulation Bureau, The _____ is the division of the Federal Trade Commission that is responsible for investigating cases involving deceptive or misleading advertising. false According to deontological thinker Kant: I. -term life policies are the only type of insurance that allows policy loans 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. Using an ambiguous or easily confused phrase. -person's hire date Advertising Practices found to be unfair or deceptive 2. The _____ was formed by three advertising associations and the Council of Better Business Bureaus to sustain high standards of truth, accuracy, morality and social responsibility in national advertising. 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. In this case the commission can issue an order, usually called a *litigated order,* to stop the particular advertising claim. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. A. U.S. Court of Appeals can review all commission order.s Substantiation is using ____, which is a(n) ______ form of advertising. -are the only ones to involve courts Solve the present value formula (5) for nnn. B. provides for the review and evaluation of all child-directed advertising. B. can be decoded to have several different meanings. It is very difficult for non competitors to gain standing to sue for false advertising under the Landham Act. If you respond by pressing any number, it will probably lead to more robocalls.". -5 commissioners, appointed by the President, including the chair man Food and Drug Administration Laws banning false advertising exist at both the state and local levels, but tend to be applied half-heartedly. -FTC regulates spam Central Hudson "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. agreed, observing that the adult struggles to attain intimacy and D. Electronic Retailing Self-Regulation Program (ERSP). These claims can be viewed as deceptive under the FTC's requirement of: which of the following must be included in the ad? C. puffery The media cannot refuse to accept advertising for an entire product class such as hard liquor. f(x)=(x5)(12x)f(x)=(x-5)(1-2 x) food and pharmaceuticals Which promotional strategy requires a "likely to mislead the consumer" Direct Marketing Reform Act. B. which law do all insurers and their producers need to comply with? Ads that promote illegal goods and services, that contain claims that appear to be deceptive or are not substantiated, or that unfairly trash a competitor's products might also be ___________. The judge also has the authority to dismiss the case. Federal Communications Commission. Substantiation: 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. Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. *Recently some consumer class-action lawsuits have netted huge settlements.*. E. dealt with consumers' rights regarding product warranties. C. the findings of marketing research studies. E. Magnuson-Moss, _____ has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts." Voluntary compliance BBB is the largest and best known self-regulatory mechanism in United States, for controlling advertising practices, that has been established by the business community. A. employment, national security, and trade. Advertising . -submit to the replacing insurer a list of the policies to be replaced D. FDA Act 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 ___________________. Implying a benefit that does not exist. Bureau of Economics -Legally, no, it cannot. -Court said overbroad and law shut down it is basically when articles or tv programs are sponsored by companies or products or service (like how American Idol judges always drank from coke bottle or snapple bottles). -substantial interest in maintaining the rights of consumer privacy *1. 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. If the commissioners agree that the advertisement is in violation of the law, the advertisiser is notified and given the opportunity to either sign the consent agreement that has been drafted or negotiate with the agency for a more favorable order. B. encourage advertisers to buy more media space. If the advertiser loses this final appeal before the commissioners, he or she can appeal the litigated order in federal court. Five commissioners, each of whom is nominated by the president of the U.S. to serve a 7-year term, head the FTC. -Does the advertising message in question concern an unlawful activity or is it misleading? A. previous advertising has led to the formation of false beliefs about a product. B. affirmative disclosure B. if the ad does not provide sufficient information to the consumers so as to make an informed decision.