D. Independent Business Alliance Central Bank advertises free checking with a minimum balance of $1,000. 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. As originally written, the law prevented only one advertiser from making false statements about his or her own goods. B. ad substantiation. B. FTC Act The U.S. Court of Appeals for the District of Columbia Circuit upheld the rule, reasoning that "the rule aims to prevent consumer cofusion about the total price they have to pay, and it goes without saying that requiring the total price to be the most prominent number is reasoablyy related to that interest." Advertisers don't like the publicity that accompanies a charge of false advertising. Unfairness -If you have a spokesperson, the consumer is affiliating your spokesperson and your brand together (this is what you have to assume) B. a superlative; illegal Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: 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). D. fairness. Competition after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? 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? -does not include political calls or spam artists 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. *Disclosure Requirements* -contributory adopted to stop unfair competition in the marketplace; section 43A creates a legal cause of action for false advertising, allowing for federal civil lawsuits based upon false advertising and endorsements. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. Postal Service D. Superlatives such as greatest, best, and finest are puffs that are often used in advertising. D. multiple interpretations. *Qualifying disclosures must be legible and understandable, the FTC has ruled. B. all clients and Most states today have such laws. WebRegulates the advertising of securities and the disclosure of information in annual reports. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? A. Central Hudson Test C. any type of comparative advertising. III only. Children If you advertise directly to children or market kid-related products to their parents, its important to comply with truth-in-advertising standards. Information has also been found to be material where it concerns the purpose, efficacy or cost of the product or service. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: A. 4. Learn about antitrust or competition laws. The commissioners then vote on whether to issue a complaint. Consent Agreement: *3. C. Cease-and-Desist Quizlet -purchase health insurance from the federal government 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. Yes, as long as the disclosure requirments are reasonably related to the government's interest in preventing deception of consumers. D. Food and Drug Administration. *There are only a handful of reasons that a judge can use to overturn the commission decision. -Legally, no, it cannot. E. Clayton Antitrust Act, The Bureau of Alcohol, Tobacco, and Firearms (BATF) is an agency within the ____. Significant omission of important information 3. When an advertisement conveys more than one meaning to a reasonable consumer, one of which is false, the seller is liable for the misleading interpretation. 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. Upon request. The CAN-SPAM Act does not provide for a private legal cause of action or remedy for spam recipients. 4 & -2 \\ Vision Council of America Advertisers need to take special care when dealing with testimonials and endorsements. Does the FTC regulate all advertising? B. -Voluntary compliance For instance, in the seminl 1943 opinion in West Virginia Board of Education v. Barnette, the court held that children in public schools could not be forced or compelled to recite the Pledge of Allegiance or salute the American flag. Magazines -name C. equity National Advertising Review Board Law greatly enlarged both the power and the jurisdiction of the FTC. 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. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. C. Godiva claims that it makes the finest chocolates in the world. The advertiser can refuse to sign the agreement. -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. Consent Decrees The advertising industry's most effective self-regulatory mechanism is the: What is the role of the leader and follower in the leadership process? Champion Sportswear has developed a "Super Bowl Sweepstakes" that it plans to promote. A. D. Fairness E. Federal Communications Commission. B. E. Federal Trade Commission (FTC). B. affirmative disclosure WebAn agency relationship exists when one person, the _____ acts for, or on the behalf of another person, the _____. A. within one month of the appearance of the ad. Critics of the FTC's ad substantiation program argue that: 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." The guides are of great benefit, however, to honest advertisers who seek to stay within the boundaries of what is allowable under the law. Individuals who are represented in the ads must be actual consumers, unless stated otherwise. -establish continuing education requirements C. Affirmative Disclosure B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. Consent agreement D. limits on the amount of television advertising per hour targeted to children are eliminated. B. Information Technology C. consumers recognize puffery and don't believe it. D. Affirmative disclosure Although the agency is located Washington D.C., it had 11 regional offices throughout the nation. *Recently some consumer class-action lawsuits have netted huge settlements.*. 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. E. Substantiation, The _____ is the government agency that has authority over the labeling, packaging, branding, ingredient listing and advertising of packaged foods and drug products. D. Lanham Act. A. D. advertising substantiation -1200 employees FTC's means to police deceptive advertising, Guides and the Child Online Privacy Protection Act There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. The FTC does not attempt to scrutinize every advertisement that is published or broadcast. Presence of superlative words in the advertisement -protections of proceeds against the insured's creditors Corrective advertising, in which an advertiser must admit in future advertisements that past advertisements have been incorrect Chapter #19: Louisiana Laws and Rules Flashcards | Quizlet 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. Deceptive advertising B. Sherman Antitrust Act 180 seconds . -if you're saying something subjective ("old puffery"), you are not likely to get in trouble with the FTC for false advertising, Guides: Chapter 20 Regulation of Advertising and Promotion - Quizlet a life insurance policy written on one contract for two people in which it is payable upon the first death is called.. MMLAW Ch. 15: Regulation of Advertising Flashcards 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. Better Business Bureau These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. 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. D. Robinson Patman Cease-and-Desist Orders The division of Broadcasting Ex: In 2010 the FTC mailed claim forms to more than 1,000 music fans because those fans allegedly were steered from Ticektmaster's Web site to its ticket resale Web site, TicketsNow, while buying tickets to attend Bruce Springsteen concerts the previous year. This provision of the Lanham Act was seldom used by advertisers until the 1970s. 1. The judge works within the FTC and officiates at these hearings. WebWhen the Commissioner of Insurance requests a producer's business records, the must be produced. A. -It was easier to block a competitor's claims than to win damages, because in order to gain a monetary award the plaintiff had to show specific monetary loss, something that is often difficult to do given the nebulous nature of advertising claims and the forces that motivate a consumer to buy a specific brand of a product. CAN-SPAM Act State regulation of advertising predates federal regulation buy several years. -Maybe 3,000 SUMMARY: D. false substitution All of these are included in the DTPA under trade and commerce . These guidelines spring from a variety of concerns. General FTC Advertising Rules. Federal Trade Commission -if spam has anything to do with sexually explicit, in header, it has to say "SEXUALLY EXPLICIT:" in all caps and you have to scroll down to see the sexual explicit content A life insurance policy sold in Louisiana can be contested by the insurer only during the first ____ years of the contract. -no interest will be charged on loan balance Food and Drug Administration. D. Television is the most carefully scrutinized of all forms of advertising. Two divisions of the Better Business Bureau's National Advertising Review Council that provide advice to advertisers: reviews national advertising for truthfulness and accuracy, and it provides a form of alternative dispute resolution for companies that is cheaper than litigation, evaluates child-directed advertising and promotional material in all media to advance truthfulness, accuracy, and consistency with its "Self-Regulatory Guidelines for Children's Advertising" and relevant laws, a variety of federal agencies are empowered to enforce consumer protection laws; FTC and FDA, the primary agent of the govt; nearly 100 years old; it polices unfair methods of business competition and protects consumers from deceptive advertising, responsible for protecting public health and ensuring that products like cosmetics, drugs and food are honestly and accurately represented to the public. C. Fairness Doctrine what kind of rider is this? 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. WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. Since these firms have differentiated products, they * * Freedom of using any media vehicle the role of the federal government was expanded when Medicaid was established by allowing the state to D) It is ineffective in situations in which competitors are unable to enter the market easily. Voluntary compliance: B. can be decoded to have several different meanings. 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. Laws and rules prep Flashcards | Quizlet B. affirmative disclosure B. consideration The telemarketers, however, argued that the exemptions for political and charitable calls made this state "under inclusive"--that to effectively serve the interests of protecting privacy and preventing fraud, the registry should also apply to political and charitable solicitations, not just to commercial sales calls. Department of Foreign Affairs WebEach order and agreement is tailored to the individual industrys needs. b. Policies and procedures for self-regulation of advertising industry are established by the ____. 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 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. 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. C. Newspapers Professional Development. 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.") By December 2013, the Do Not Call Registry included more than 223 million active phone numbers, including both landline and wireless phones. Review the following transactions for Birdy Birdhouses and record any required journal entries. E. Food and Drug Administration, In 1996, President Clinton signed an executive order declaring that nicotine was an addictive drug and gave the _____ broad jurisdiction to regulate the advertising of cigarettes and smokeless tobacco. 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). -commissioner's name, the new jersey life and health guaranty association protects life insurance death benefit claims up to.. In fiscal year 2012, the FTC had more than 1,000 full-time employees and a budget of $313 million. E. Advertising substantiation. B. -former depended of employee no longer of dependent status Business Ethics and Legal Final Review The court thus ruled in favor of the federal beef promotion program and its compelled subsidization of advertising to which some cattle ranchers aand farmers object. But if time is the greatest enemy, publicity is the FTC's strongest ally. E. Standards and Practices Division, Which of the following media has the most stringent review and approval process for advertising? D. Distilled Spirits Council. A. National Advertising Division C. Advertisers who participate in the full process of an NAD investigation, and NARB appeal often do not abide by the panel's decision. Its cost of goods sold is 75 percent of sales, and it finances working capital with bank loans at an 8 percent rate. what amount will be paid under a policy where the insured misstated his/her age? Adv. Mkt Ch 20 with Flashcards | Quizlet 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. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. President Theodor Roosevelt broke up many Trusts by making anti-trust laws. A. 3) The advertiser can refuse to sign the agreement. E. The four major television networks. ) 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.