*In a nutshell, the FTC's rules against deceptive advertising break down into 2 critical components:* A. B. Centre for Electronic Technology. The agency believes the typical reasonable consumer does not take such claims seriously and thus they are unlikely to be deceptive. B. govt may regulate Since these firms have differentiated products, they CHAP 11: NH general laws Flashcards | Quizlet WebA life insurable policy's advertising material MUST contain all of the following information EXCEPT: Agent's commission. The Magnuson-Moss Act of 1975: Pr(\operatorname{Pr}(Pr( Audi after Ford )=0.6Pr(VW)=0.6 \quad \operatorname{Pr}(\mathrm{VW})=0.6Pr(VW after Ford )=0.4)=0.4)=0.4 Ohio Laws and Rules Flashcards | Quizlet Advertising Regulations Flashcards | Quizlet The Federal Trade Commission may require affirmative disclosure if: A. commercial speech. A. cease-and-desist order -If an ad represents that an endorser uses the product, then the endorser must have been a bona fide user of it at the time the endorsement was given and, in addition, the advertiser may continue to run the ad only so long as it has good reason to believe that the endorser remains a user of this product. -Voluntary compliance There is a "reasonable fit" means "narrowly tailored" Substantiation: D. multiple interpretations. -person's net income Making a claim without substantiation. 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. The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. D. Cease-and-desist orders In April 2013, the U.S. Supreme Court declined to hear the airlines' appeal in the case. -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. There is just an agreement not to repeat that particular claim in future advertising campaigns. 4. Unsolicited junk fax ads and telemarketing calls to consumers who do not want to be called are banned under the: -human resource department A. -no interest will be charged on loan balance E. Consent orders lead to excessive adverse publicity. D. Electronic Retailing Self-Regulation Program 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.". E. Network standards have become more stringent in response to competition from independent and cable stations. 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. Several airlines challenged the rule on First Amendment grounds in Spirit Airlines v. U.S. De'p of Transporatition. Marketers only need to engage in environmental scanning if they are promoting eco-friendly or "green" products. The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. C. Wheeler-Lea Amendment C. is regulated by affiliates. -to tell them what they can and can't do D. Lanham Act. A. advertisers, creatives, and the cable operators. The act or practice must be considered from the perspective of a "reasonable consumer." Substantial Omission E. avoid questionable advocacy advertising. 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. A. unfairness In 1995, the Federal Trade Commission issued a complaint against the manufacturers of New Balance and Saucony athletic shoes based on their "Made in the USA" advertising claims. E. advertisers who do not want to be self-regulated. To avoid having this promotion classified as a lottery, Champion should: Importantly today, the FTC's prohibition against unfair or deceptive advertising and fraudulent marketing in any medium includes the Internet. E. Affirmative disclosure. C. Robinson Patman Act Food and Drug Administration B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends. C) It involves underpricing products so that companies make larger sales. A. require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. Cease-and-Desist Orders -insurance prospectors 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. Central Bank advertises free checking with a minimum balance of $1,000. If a case is not resolved to its satisfaction, the NARB has the power to order an advertiser to stop running its ads. Freedom of using any media vehicle Bureau of Economics B. All claims made in advertisements must be substantiated such that, before disseminating an ad, advertisers must have a reasonable basis for any and all express and/or implied product claims, with claims relating to health and safety coming under even closer FTC scrutiny that typically requires proof by competent and reliable scientific evidence. -purchase health insurance from the federal government period of time after the premium is due but the policy remains in force. An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. C. defined the requirements for advertising substantiation. The basic defense against any false advertising complaint is truth-that 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 as it is advertised to be. [4320]+[wyxz]=[2035]. Legislation is being considered that would either ban or impose major restrictions on WebRegulatory concerns never play a major role in the advertising decision-making process. E. Advertising substantiation. -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. 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. -existing producers -disclaimers must be included by the FTC. A. ad substantiation has been proven unnecessary as long as the advertising industry is self-regulating. Postal Service have laws that govern the use of a(n) ____, whereby a company proposes to send merchandise to consumers and expects payment unless a rejection or cancellation notice is sent by the consumer. \end{array}\right]=\left[\begin{array}{rr} -47% of the time people can't tell it is native advertising C. Cease-and-Desist WebThe Telephone Disclosure and Dispute Resolution Act of 1992 requires FTC to promulgate regulations concerning advertising for, operation of, and billing and collection procedures for, pay-per-call or "900 number" telephone services.The regulations must include certain provisions, such as price disclosure requirements, mandatory warnings on services A. these rights are called B) It can be profitably used when the product's quality and image support its price. 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. E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? *10-Day Prohibition Period* Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. an agent is required to keep replacement forms on file for at LEAST __ years.. a producer who sells an individual life insurance policy in new jersey MUST deliver to the policy owner a(n), contain content approved by the commissioner, the names of the insurance companies represented by the producer A. Under this policy, express substantiation claims, such as "doctors recommend" and "specific tests prove," require the level of proof advertised. 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. an employee under a group insurance policy has the right to name a beneficiary and the right to convert to an individual policy in the event of employment termination, HIPAA considers which of the following as -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? Which of the following statements is TRUE? B. FTC Improvements Act 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. Under the Children's Television Act,: is using ____, which is a(n) ______ form of advertising. Marketing Agreements are only binding for those handlers that sign the agreement. -beneficiary, replacement regulation is designed to protect A. deceptive advertising. Suggesting that a trivial difference is important. It is only acceptable to lie when done to protect an innocent person. * B. advertisers so that they can sue media for not providing them with the promised reach and frequency. E. speech governed by the First Amendment to the U.S. Constitution. National Advertising Review Board Chapter 20: Regulation of Advertising and Promotion The order is published and made final in 60 days. *Considerable pressure is placed on the advertiser to agree to a consent order. -establish continuing education requirements Which of the following statements is true about National Advertising Review Council (NARC)? WebMarketers should monitor developments outside a firm's control in order to detect and respond to threats and opportunities. Falsely implying that a benefit is needed. Ad substantiation E. Advertisers who do not comply with the NAD/NARB review process will find themselves encumbered with a class action lawsuit. A. puffery C. Comparative advertising WebA) It is effective in situations in which competitors are able to undercut prices easily. Consent agreements or consent orders signed by advertisers promising to terminate a deceptive advertsiement Food and Drug Administration Food and Drug Administration. 2) The advertiser can agree to sign the agreement, but the commissioners reject it. D. advertisers, agencies, and the media. "The commission generally will not bring advertising cases based on subjective claims (taste, feel, appearance, smell)," according to the guidelines. The advertising industry's most effective self-regulatory mechanism is the: Sometimes an advertiser doesn't want to sign a consent agreement. Law of Agency DRAFT. This agency was responsible for putting warning labels on alcoholic beverage advertising and D. Federal Trade Commission -FTC says just prove to us this is real; they should be coming from the standpoint it is truthful (but probably not) E. Puffery is only illegal if it eliminates a competitive advantage. This provision of the Lanham Act was seldom used by advertisers until the 1970s. These claims can be viewed as deceptive under the FTC's requirement of: E. Substantiation, Under the _____ Doctrine, the Federal Communications Commission (FCC) required stations to run commercials about the harmful effects of smoking.