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. -dental care. -brokers and consultants what is an insurance policy's grace period? -beneficiaries 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 ___________________. B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends. -Does the advertising message in question concern an unlawful activity or is it misleading? B. puffery has detrimental effect on consumers' purchase decisions. -beneficiary, replacement regulation is designed to protect These (like the Sherman Act) were made to protect consumers and promote competition in the marketplace. A. U.S. Court of Appeals can review all commission order.s The most recent commission policy statement on substantiation was issued in 1984. B. affirmative disclosure Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? 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 ____. 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 If either of the last two events occur, a complaint is issued against the advertiser and a hearing is scheduled before an administrative law judge. C. The media can refuse to accept individual ads they find offensive or objectionable. E. remuneration. 3. *False/Misleading Messages* B. a commercial that was rejected at the storyboard stage is accepted at the final stage. C. Lanham Tags: Question 34 . -frequency of the premium payment -person's net income Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. E. Trade Regulation Bureau, The _____ is the division of the Federal Trade Commission that is responsible for investigating cases involving deceptive or misleading advertising. Several developments propelled the growth of Lanham Act false advertising activity: an accident and health insurer just received written proof of loss from one of its insureds. Injunctions: D. U.S. Department of Welfare D. Most media accept any advertising they receive since advertising is their major source of revenue. The case goes to an appellate court, and there is no new finding of fact: What the FTC says is fact, is fact. E. National Association of Broadcasters. -conduct investigations * Advertising by professionals (attorneys and physicians) may be regulated in a more restrictive fashion. The regulation of deceptive or untruthful advertising is a difficult task maintained by the advertising industry, the mass media and governmental agencies. On the other hand, to the extent that spam pertains to a lawful product and is neither false nor deceptive, it constitutes commercial speech protected by the First Amendment. 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." 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. -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. 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. There is just an agreement not to repeat that particular claim in future advertising campaigns. First anti-trust law was passed in 1890: the Sherman Act. The reason a magazine such as 'Good Housekeeping' regularly tests products and offers a "seal of approval" is to: Under the FTC's rules, several key points emerge that must be understood: *1. to address the negative aspects of spam, Congress and Bush signed into this law; it applies to the commercial electronic mail messages that have as their primary purpose the commercial advertisement or promotion of a commercial product or service, false/misleading messages, function return addresses and opt-out mechanism, 10 day prohibition period, disclosure requirements, aggravated violations, functioning return addresses/opt out mechanism. Use the following information. -$200,000, which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? D. fairness. E. Federal Express advertises guaranteed overnight delivery service. B. D. Robinson Patman Act Ads can't be unfair, meaning the advertisement can't cause substantial injury to consumers that consumers The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. 4 & -2 \\ You Are Here: ross dress for less throw blankets apprentissage des lettres de l'alphabet advertising regulations exist in order to quizlet. C. Lanham Act WebRegulatory concerns never play a major role in the advertising decision-making process. C. is important to consumer and would likely have an effect on the purchase decision. False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. -insured 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. D) It is ineffective in situations in which competitors are unable to enter the market easily. 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. Although the agency is located Washington D.C., it had 11 regional offices throughout the nation. B. Telephone Consumer Protection Act of 1991. According to the Federal Trade Commission _____ exists if there is a misrepresentation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer's detriment. D. misrepresentation Self Regulation by the Advertising Industry, Local Regulation and Better Business Bureau. -$500,000 Quizlet Typically the advertising campaign is already over. E. affirmative disclosure. Robocalls are illegal even if the number dialed is not on the Do Not Call Registry. Postal Service. Voluntary compliance It is difficult for courts to reverse an FTC ruling. A. cease-and-desist C. National Advertising Review Board Postal Service -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. An appeal of an adverse ruling by a circuit court can be taken to the Supreme Court, but only if certiorari is granted. The FTC does not presume that the claims are false or misleading. 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. _____________________________ (______): This agency describes itself as the children's arm of the advertising industry's self-regulation program, and it 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. Under this rule, airlines are free to provide an itemized breakdown (displaying to the customer the amount of the base fare, taxes and other charges), but they many not display such individualized price components "prominently" or "in the same or larger size as the total price." D. advertisers, agencies, and the media. B. advertisers so that they can sue media for not providing them with the promised reach and frequency. "to the consumer's detriment", Advertising Practices found to be unfair or deceptive 1. The degree of substantiation that will be deemed reasonable varies with "the type of claim, the product, the consequences of a false claim,, the benefits of a truthful claim, the cost of developing substantiationand the amount of substantiation experts in the field believe is reasonable," the policy statement said. -administer oaths, which of the following would be considered a possible applicant and contract policy holder for group health benefits? II. 3. Within how many days must a producer notify the department of banking and insurance of a change in address? B. ad substantiation is not needed because most advertisements make very legitimate claims. Circuit Court of Appeals held that Craiglist was protected from liability by Section 230 of the Communications Decency Act (CDA) after it posted rental ads with discriminatory statements such as "no minorities" and "no children" that violate the federal Fair Housing Act. 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. -initial premium requirement -Sellers invested huge sums in building product images and establishing product claims. E. Promotional Products Marketing Association. E. The division of Economic Practices, The _____ gave the Federal Trade Commission the power to establish trade regulation rules. B. speech that promotes a commercial transaction. The _____ made it easier for Chevron to sue Texaco for this perceived misrepresentation. Lawsuits for false advertising claims were relatively rare until the last quarter of the 20th century. The act or practice must be considered from the perspective of a "reasonable consumer." 180 seconds . One commissioner is chosen by the president to be the chairman of the FTC. B. provides for the review and evaluation of all child-directed advertising. Will you buy the book? Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. MMLAW Ch. 15: Regulation of Advertising Flashcards -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? US Postal Service (USPS) Responsible for regulating direct mail advertising and In 2012, a federal appellate court uhoeld a Department of Transporation rule affecting the price of tickets advertised by airlines. *Child Advertising Review Unit (CARU)*. Web(1) An advertisement shall not utilize or describe nonguaranteed elements in a manner that is misleading or has the capacity or tendency to mislead. Module 13 Learn Smart Flashcards | Quizlet Postal Service regulations. 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. -guaranteed insurability rider, the commissioner may advertising regulations exist in order to quizlet D. Trademark Improvements Act 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. advertising regulations exist in order to? The law originally required consumers to re-register their numbers every 5 years to remain on the registry. B. Centre for Electronic Technology. Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. *10-Day Prohibition Period* b. adopted the principle of caveat emptor. 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. Bad publicity can cost a company millions of dollars. *3. Trade regulation rules have had a great deterrent effect, as they comprehensively delimit what constitutes an illegal practice. Food and Drug Administration 2. In addition to policing false advertising, the FTC is charged with enforcing the nation's antitrust laws and several federal statutes such as the Truth in Lending Law and the Fair Credit Reporting Act. C. Bureau of Alcohol, Tobacco and Firearms Implied uniqueness If this happens the order is published and made final in 60 days. (The importance of this power alone cannot be overestimated. The burden is on the government to disprove the advertiser's claim. New Jersey Laws and rules Flashcards | Quizlet -producers, a guaranteed issue insurance policy has no -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? The Magnuson-Moss Act of 1975: The FTC has many remedies to regulate deceptive or untruthful advertising: Misinterpretation D. Bureau of Consumer Protection An exaggeration extended to the point of outright spoof that is obviously not true. For some specialized products or services, additional rules may apply. Determining what constitutes commercial speech, however, is not easy. Central Bank advertises free checking with a minimum balance of $1,000. -Trade Regulation Rules. In addition, the matter in the spam e-mail message that is initially viewable when it is opened cannot include any sexually oriented material. CARU determined the packaging might mislead children into believing that they could make the dolls duplicate the poses featured on the packaging when, in fact, they could not do so. -waiver of premium What is the role of the leader and follower in the leadership process? b. A. commercial speech. 2. Drug companies must only submit their ads to us when they first appear in public. The change of a single word gave the FTC broad new areas to regulate. Don't press 1 to speak to a live operator and don't press any other number to get your number off the list. D. comparative advertising. Advertising Regulations Flashcards | Quizlet The FTC believes that the claim is deceptive. D. deception an advertiser promotes his/her own good and tends to pick holes in a competitor's version of the product. B. ad substantiation. John Oliver video on Native Advertising: The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. C. Corrective advertising D. multiple interpretations. The company must conduct careful studies to provide support for the claim because: In either case, the losing side can appeal to the federal trade commissioners for a final ruling. -is made available after paying a $50 fee. Privacy on the internet-in particular, companies and advertisers tracking and monitoring the Web sites consumers visit-is now a major concern of the FTC. A. deception; legal D. uses any superlatives. Magazines The Printer's Ink Statutes -annuity's guaranteed interest rate The FTC does not attempt to scrutinize every advertisement that is published or broadcast. Legislation is being considered that would either ban or impose major restrictions on C. Bureau of Alcohol, Tobacco and Firearms -47% of the time people can't tell it is native advertising WebThe Louisiana Life and Health Insurance Guaranty Association. C. trade allowances period of time after the premium is due but the policy remains in force. Newspapers, magazines, broadcasting stations, online service providers and other mass media all have rules that regulate the kind of advertising they carry. If the commissioners agree that the advertisement is not misleading or deceptive, the case ends. The hearing is a lot like a trial, only more informal. C. Advertising for contraceptives is completely banned on all networks since 1995. Vision Council of America Implied uniqueness A. ad substantiation has been proven unnecessary as long as the advertising industry is self-regulating. A. Virginia Consumer Council Test -Endorsements must reflect the honest opinions, findings, beliefs or experiences of the endorser and may not contain any representations that owls be deceptive or could not be substantiated if made directly by the advertiser. Telephone Consumer Protection Act of 1991. -fully insured II. -agents commission rate WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. A. A. A. exchange 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. The new law expanded the jurisdiction to practice "affecting commerce." D. limits on the amount of television advertising per hour targeted to children are eliminated. B. A. B. offer only merchandise and no cash as part of the sweepstakes prizes. To be considered commercial speech, it only has to meet 1 of the 3 questions. Remedies for deceptive and unfair advertising, Require Substantiation Advertising claims that significantly involve health and safety are usually presumed to be material. Beginning in the 1990s the Food and Drug Administration (FDA) began an aggressive campaign against a variety of companies to force them to change their labeling and promotional practices. WebRegulates the advertising of securities and the disclosure of information in annual reports. the New Jersey Temporary Disability Benefits Law. provides non-occupational disability benefits. E. materiality, Under which of the following FTC programs might a firm be required to have product information verifying the veracity of its advertising claims before making any advertising claims about the product? There is a substantial state interest to justify the regulation. An advertiser who says that his product is the "best," "greatest," etc. _______________________ (_____): 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. B. can be decoded to have several different meanings. Ethics - Chapter 3 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. C. U.S. E. Most media reject political ads. B. which of the following must be included in the ad? B. D. National Association of Broadcasters E. avoid comparative advertising. A. E. Violation of trade regulation rules, B. B. negative option *Aggravated Violations*. Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". The act or practice must be considered from the perspective of a consumer who is acting reasonably. E. Federal Communications Commission. D. is concerned with the misrepresentation of premiums when used in sales promotions. -The size of damage awards skyrocketed. Corrective advertising -estoppel National Advertising Division (NAD) and Child Advertising Review Unit (CARU). In 2010, the FTC went after a high-tech form of bait-and-switch advertising when it settled charges that Ticketmaster and its affiliates used deceptive bait-and-switch tactics to sell concert tickets to consumers. B. all commercial e-mail messages must contain either a functioning return e-mail address or an "opt-out" mechanism. Consent Decrees 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 A. an unfair claim. Department of Justice (DOJ) There must be a representation, omission or practice that is likely to mislead the consumer. D. discounts 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 addition to the informal sanction of publicity, the FTC has a wide range of remedies to deal with advertising: -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: The basic defense against any false advertising complaint is truththat 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 is it is advertised to be. D. advertising substantiation -But courts began to ease this standard at about the same time that they began to increase the size of damage awards. 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. May also argue the claim in question is not material, and therefore will not impact a purchasing decision. -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. C. not require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. E. Consent orders lead to excessive adverse publicity. Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. B. *In a nutshell, the FTC's rules against deceptive advertising break down into 2 critical components:* E. dealt with consumers' rights regarding product warranties. The 10th Circuit ruled in 2004 that the Registry did not violate First Amendment rights because the government asserted a _______ and the Registry directly advanced that interest. 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. B. Puffery is banned in a 1996 revision of the Uniform Commercial Code. 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. 0 & 5 The federal law that made this suit possible was the _____ Act. -arbitrate claims B) It can be profitably used when the product's quality and image support its price. E. NARC is a government agency regulating advertising agency. A. 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. 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. D. Internet 1. 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. 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. Advertising must be truthful and not misleading, with misleading ads sweeping up those in which relevant information is omitted, those that imply something that's not true and those in which any disclaimers or disclosures are not clear and not prominent enough for reasonable consumers to see, hear and understand them.
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