C. selective retention. C. NAD/NARB. An entire industry can be treated similarly, and just one or two businesses are not picked out for complaint. The act or practice must be considered from the perspective of a consumer who is acting reasonably. advertising regulations exist in order to quizlet after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? *Child Advertising Review Unit (CARU)*. which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? For a long time, advertising was ______ protected by the First Amendment. The law also gave the agency important new power. National Advertising Division Alcohol Advertising Laws The First Amendment allows for a lot of freedom of speech in general and therefore limits how much the federal government can regulate advertising, even in regard to alcohol. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. D. affirmative disclosure order *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. C. consumers recognize puffery and don't believe it. A. FTC Act E. advertisers, government, and the television networks. *False/Misleading Messages* A. commercial speech. 1. Also, the time factor works in the advertiser's favor. E. Information Technology Act. -is only available to insurance companies 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." Weban insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. C. Freedom to stop the airing of any advertisement 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. E. Corrective advertising, Under the FTC's program of ____, Novartis Corporation was required to run advertising informing consumers that it could not substantiate its claim that Doan's pills were superior to other over-the-counter analgesics in treating back pain. More part of the new law is that the endorsers may also be subject to liability for their statements. The FTC initiated in 2003 one of its most popular and well-used programs-the National Do Not Call Registry that allows people to block the calls of telemarketers. -person's net income These claims can be viewed as deceptive under the FTC's requirement of: 2. D. Lanham Act Staff attorneys at the FTC will issue a complaint against the advertiser, and a hearing will be held before an administrative law judge. Writing for a 6-justice majority, Justice Antonin Scalia wrote that "the message set out in the beef promotions is from beginning to end the message established by the Federal Government" and that the secretary of agriculture "exercises final approval authority over every word used in every promotional campaign." 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 To avoid having this promotion classified as a lottery, Champion should: B. consent order The law is not designed to protect the foolish or the "feeble minded," the commission has noted. -If you use a spokesperson, that spokesperson should support the product -protection of proceeds against the insured's and the beneficiary's creditors B. provides for the review and evaluation of all child-directed advertising. protects insured from insurance company insolvency. A. These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. 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. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. Whereas commercial speech typically receives limited First Amendment protection. A. cease-and-desist. B. Advertisers claimed the Registry violated their First Amendment rights to free speech. E. unsubstantiated order. B. Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. In 1977, the _____ ruled that restrictions on advertising by lawyers are unconstitutional and that they have a First Amendment right to advertise. Although many products and services are sold locally only, nearly every conceivable advertising medium is somehow affected by or affects interstate commerce. C. Consumer Protection -person's employment history An advertiser seeking redress under this federal law can seek to stop the misleading practice and/or win money damages. To settle the issue, Ticketmaster agreed to pay refunds to consumers who bought tickets for 14 Bruce Springsteen concerts through its ticker resale Web site TicketsNow, and to be clear about the costs and risks of buying through its reseller sites. 8. Postal Service. In some cases it is not easy to distinguish political speech from commercial speech, as courts recently have observed. 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). The _____ accepts cases dealing with product performance claims, superiority claims against competitive products, and all kinds of scientific and technical claims made in national advertising. C. puffery Businesses must have evidence to back up their claims. Spoekspersons for the FTC have said that the agency will use the power only in those instances in which the advertising can cause harm, in those cases that contain a clear law violation, and in those cases in which there is no prospect that the advertising practice will end soon. 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. During fiscal year 2013, the FTC received more than 3.7 million complaints regarding alleged violations of the registry, down from about 3.8 million in 2012. -On top of this, the judge can double or triple the damage award in cases of especially flagrant falsity. -Interstate commerce - anything that involves commerce between 2 states It defines an endorsement as any advertising message (including things such as verbal statements, demonstrations and depictions of the name of an individual or the name or seal of an organization) that consumers likely are to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser. D. Cease-and-desist orders B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. Advertising on television and radio was regulated for many years through codes developed by the _____ until the courts found some of its regulations served to restrain trade. -all serve 7 terms 1. 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. If an advertiser refuses to sign a consent order, the inquiry is handed to the U.S. Department of Justice. The federal Lanham Act was adopted more than 60 years ago by Congress to stop unfair competition in the marketplace. B. (The importance of this power alone cannot be overestimated. C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. pat owns a 20-pay life policy with a paid-up dividend option. In April 2013, the U.S. Supreme Court declined to hear the airlines' appeal in the case. D. A consent order prohibits an advertiser from making a specified advertising claim for 30 days. Don't press 1 to speak to a live operator and don't press any other number to get your number off the list. 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." Module 13 Learn Smart Flashcards | Quizlet B. a. affiliation. The law originally required consumers to re-register their numbers every 5 years to remain on the registry. All commercial e-mail "that includes sexually oriented material" must also include a warning label on the subject line. But practically, it can regulate almost all advertising. Telephone Consumer Protection Act of 1991. The order is published and made final in 60 days. Department of Foreign Affairs -$500,000 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: The merchant then claims the product is not available at the price but another model can be purchased at a high price. A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants. A. puffery SUMMARY: Trade Regulation Rules: B. creative boutiques, copywriters, and consumers. Ads must tell they truth, not mislead (either by sins of omission or sins of express or implied misrepresentation) and be backed up with prior substantiation. D. Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff. -presumtive disability 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. D. Robinson Patman Injunctions: A. B. a commercial that was rejected at the storyboard stage is accepted at the final stage. -Advertising, as a part of the marketing mix for all products, took on more importance in the past 50 years. Advertising A. B. advertising on children's programs is limited to 12 minutes per hour on weekdays and 10.5 minutes per hour on weekends. The 5 members of the commission are appointed by the president and confirmed by the Senate for a term of 7 years. NAD recommended that Gillette stop using "MoistureRich" in both the product name and as a descriptor when used in isolation in phrases such as "Treat Your Skin to MoistureRich." The signing of a consent order is an admission of guilt by the advertiser. National Advertising Division (NAD) and Child Advertising Review Unit (CARU). Bureau of Economics National Advertising Review Board 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. Implying a benefit that does not exist. *There are only a handful of reasons that a judge can use to overturn the commission decision. Most newspapers ship at least a few copies across state lines. -Corrective Advertising E. Federal Communications Commission. B. E. Federal Express advertises guaranteed overnight delivery service. 2. Bureau of Competition -name B. implied uniqueness D) It is ineffective in situations in which competitors are unable to enter the market easily. -agents commission rate While the front panel of the box showed it contained no trans fat, it failed to include a disclosure statement to alert consumers that the product nonetheless has significant levels of both saturated fat and total fat, thus violating the federal Food, Drug, and Cosmetica Act. WebList the 7 primary government agencies regulating advertising and their area of advertising regulation. Postal Service E. Clayton Antitrust Act, The Bureau of Alcohol, Tobacco, and Firearms (BATF) is an agency within the ____. Using an ambiguous or easily confused phrase. Quizlet -Also court said this case was "in the public interest". Freud defined the healthy adult as one WebFederal Regulators of Advertising -Federal Communications Commission -Food and Drug Administration -US Postal Service -Bureau of Alcohol, Tobacco and Firearms -Federal Trade Commission Federal Trade Commission Jurisdiction Responsible for regulating unfair 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. Significant omission of important information. advertising regulations exist in order to quizlet. B. can be decoded to have several different meanings. D. Federal Trade Commission Which of the following statements about a consent order is true? Chapter 15- Regulation of Advertising Flashcards | Quizlet 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. Freedom of using any media vehicle [4320]+[wyxz]=[2035]. The challenge wad filed with NAD by a competitor of Gillette, namely Schick, which makes "Intuition Plus" razors. C. refer the matter to an appropriate government agency. Advertisers can still litigate the question, challenge the trade regulation rue, seek an appeal in court and so forth. C. Federal Communications Commission * Does the FTC regulate all advertising? Advertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. Fact Sheet 5 Tobacco Product Marketing Restrictions - Public -no interest will be charged on loan balance E. Sherman Antitrust Act. -FTC says just prove to us this is real; they should be coming from the standpoint it is truthful (but probably not) -insurers Such regulation is geared toward satisfying the interests of advertisers rather than consumers, however. Almost everyone who uses electronic mail has received unsolicited commercial advertising known as "spam." The U.S. Supreme Court turned back a challenge to the appellate court's ruling, thus bringing an end (at least for the time being) to telemarketers' efforts to invoke free speech arguments to have the popular ban on unwanted phone solicitations declared unconstitutional. E. Freedom of press. E. Federal Communication Reform Act. Consent Agreement: 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. advertising regulations exist in order to? -agents. * B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. The _____ is sponsored by the Electronic Retailing Association (ERA), although it works independently of the ERA to create an unbiased self-regulatory system. An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. The issue of truth and deception in such ads gained both public and congressional attention in 2008 when Pfizer, Inc. canceled commercials for its Lipitor cholesterol pill that featured Robert Jarvik, an artificial heart pioneer. 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. The majority concluded that while "citizens may challenge compelled support of private speeech" they "have no First Amendment right not to fund government speech." Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? Ohio Laws and Rules Flashcards | Quizlet E. affirmative disclosure. 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. *Qualifying disclosures must be legible and understandable, the FTC has ruled. D. National Association of Attorneys General Media can refuse to accept or restrict the timing of ads that violate standards of truth or good taste. E. McDonald's. E. avoid questionable advocacy advertising. This agency was responsible for putting warning labels on alcoholic beverage advertising and To be considered commercial speech, it only has to meet 1 of the 3 questions. Trade regulation rules, guides & Child's Online Privacy Protection Act, FTC issues industry guides for a variety of products, services, and marketing practices. Deceptive advertising Other times the ads themselves might be regarded as tasteless, like an advertisement for clothing in which then models are scantily dressed or posed erotically. Will you buy the book? 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. B. Independent Business Alliance The FTC does not attempt to scrutinize every advertisement that is published or broadcast. When the FTC recovers money against a company for false or misleading advertisements, who gets to keep it? Under the FTC's rules, several key points emerge that must be understood: D. deception what is an insurance policy's grace period? *Normally, what the FTC says in an advertisement is considered to be an advertisement fir purposes of regulation. "individually identifiable health information" ? D. U.S. Justice Department. C. Wheeler-Lea Amendment In 2012, a federal appellate court uhoeld a Department of Transporation rule affecting the price of tickets advertised by airlines. -$400,000 E. speech governed by the First Amendment to the U.S. Constitution. D. Sherman Antitrust Act Weba. *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. Television advertising: C. First-Amendment Analysis A. John Oliver video on Native Advertising: Distribution . Unfairness an amount the premium would have purchased at the correct age. A. B. Learn about antitrust or competition laws. Federal Trade Commission's (FTC's) _____ program required advertisers to have supporting documentation for their claims and to prove the claims are truthful. A variety of federal agencies are empowered to enforce consumer protection laws. -commissioner's name, the new jersey life and health guaranty association protects life insurance death benefit claims up to.. tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. This is known as: "acting reasonably in the circumstances" A. The Federal Trade Commission remains the nation's most potent weapon against false or misleading advertising. B. Under the proposed new guides, such disclaimers indicating that the results of the endorser are unusual or out of the ordinary would not be enough to protect the advertiser from potential liability. 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. -establish new insurance laws, establish continuing education requirements, which of the following is true concerning the proceeds of a life insurance policy? B. encourage advertisers to buy more media space. Self Regulation by the Advertising Industry, Local Regulation and Better Business Bureau. 3. Litigated Order: Mass Media Law Chapter 15: Regulation of Advertising - Quizlet -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? -contributory The FTC issues industry guides for a variety of products, services and marketing practices. A. cease-and-desist Which of the following statements about the use of puffery in advertising is true? The Magnuson-Moss Act of 1975: -term life policies are the only type of insurance that allows policy loans All broadcasting stations are considered to affect interstate commerce. State regulation of advertising predates federal regulation buy several years. is using ____, which is a(n) ______ form of advertising. E. National Association of Broadcasters. B. FTC Act The endorser must be a bona fide user of the product at the time the endorsement was given and while the endorsement is aired. Corrective Advertising: 2) The advertiser can agree to sign the agreement, but the commissioners reject it. The FTC has many remedies to regulate deceptive or untruthful advertising: The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. B. puffery. -initial premium requirement B. 4. D. advertisers who want to use misleading wording in their ads. D. misrepresentation 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. Substantial Omission For example, an advertiser can argue that the deceptive statement is not material to the advertisement as a whole (that is, it will not influence the purchasing decision) or that the advertisement does not imply what the government thinks it implies. the role of the federal government was expanded when Medicaid was established by allowing the state to -divorced spouse of employee B. Vision Council of America Voluntary agreements by advertisers to terminate a deceptive advertisement D. U.S. By July 2012, the FTC had brought a dozen enforcement cases targeting illegal robocalls, with violators paying $5.6 million in total fines. the reinstatement provision in a health insurance policy is in which of the following situations would the insurer be liable for a loss? FTC Tools or Remedies to Stop False Advertising: B. speech that promotes a commercial transaction. II. 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: If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB. C. Bureau of Alcohol, Tobacco and Firearms. Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". D. Electronic Retailing Self-Regulation Program B. consideration In dealing with false advertising, the FTC's greatest enemy is the time needed to bring an action against an advertiser. Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. the insured must now wait 60 days before bringing in legal action against the insurer. C. selective retention govt may regulate The advertiser can agree to sign the agreement, and the commissioners vote to accept this agreement. In most cases they probably will not go to that expense. Acceptable forms include: A. consumers cannot distinguish between factual information and puffery. Until the bill was signed, the FTC was limited to dealing with unfair and deceptive practices that were "in commerce." 5. A. Deception Laws Litigated orders The new law permits state and local governments to: -does not include political calls or spam artists -5 commissioners, appointed by the President, including the chair man y & z D. Vision Council of America the New Jersey Temporary Disability Benefits Law. provides non-occupational disability benefits. The key elements in the FTC's definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it has: B. affirmative disclosure f(x)=(x5)(12x)f(x)=(x-5)(1-2 x) To address the negative aspects of spam, Congress passed and President George W. Bush signed into law in 2003 the __________________. 1. -survivorship, in contrast to a guaranteed renewable policy, a non cancellable policy -arbitrate claims E. noncompetitive advertising. Congress shall make no laws "abridging the freedom of speech, or of the press", Criteria for Judging whether Prior Restraint is Justified. who is able to love and work. C. regulation, restriction, and reconstruction. Quizlet BBB stands for: Better Business Bureaus provide control over advertising practices at a _____ level while the Council of Better Business Bureaus plays a major role in controlling advertising practices at a(n) _____ level. B. providing full disclosure. D. California Test of Affirmation Nestl claims "Nestl makes the very best chocolate," Snapple advertises that its beverages are "made from the best stuff on Earth," are all examples of: Section 43(a) creates a legal cause of action for false advertising. E. National Association of Attorneys General, C. Bureau of Alcohol, Tobacco and Firearms, The _____ is a government regulation that is increasingly being used by companies to sue competitors for false or misleading advertising claims. 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). E. an illegal comparative advertisement. There is a "reasonable fit" means "narrowly tailored" E. Violation of trade regulation rules, B. 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. An appeal of an adverse ruling by a circuit court can be taken to the Supreme Court, but only if certiorari is granted. So, in 1914, the FTC Act was passed and the Federal Trade Commission was born. C. Cease-and-Desist D. Trademark Improvements Act 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. There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. -home address -Not only is it now possible for plaintiffs to win actual damages and court costs from the defendant, but they can also tap into any profit made by the competitor through the use of a bogus advertising campaign. Ch 20 Flashcards | Quizlet SUMMARY: -protections of proceeds against the insured's creditors 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. The representation, omission or practice must be material. In a unanimous opinion, the appellate court wrote that "the government has assured substantial interests to be served by the do-not-call registry (privacy and consumer protection), the do-not-call registry will directly advance those interests by banning a substantial amount of unwanted telemarketing calls, and the regulation is narrowly tailored because its opt0in feature ensures that it does not restrict any speech directed at a willing listener.
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