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The act or practice must be considered from the perspective of a consumer who is acting reasonably. WebAdvertising is not equally productive for firms in every market type. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? B. reggie purchased a life insurance policy with a face amount of $500,000. The former phrase played a pivotal role in a case decided by the U.S. SUpreme Court in 2005. E. The four major television networks. ) -Litigated orders -this is why there are so many laws because there are so many ads; also, Lanham Act gives a good amount of money if you win one of these cases, ______ is a powerful, strong, and influential agency. Commercial Speech Doctrine. People who work in advertising must be aware of such rules as well as all other regulations (libel, invasion of privacy, obscenity) that restrict the content and flow of printed and broadcast material. It applies to "commercial electronic mail messages" that have as their "primary purpose" the "commercial advertisement or promotion of a commercial product or service." C. Comparative advertising 1. B. There must be a representation, omission or practice that is likely to mislead or to confuse the consumer. D. Lanham Act. The ___________________________________ is the primary agent of the government, but clearly not the only agent. D. the FTC may charge Acme with using puffery, which is an illegal form of advertising. The commissioners then vote on whether to issue a complaint. II. b. product safety. 3. The Federal Trade Commission takes the position that: D. Bureau of Consumer Protection C. equity -The size of damage awards skyrocketed. Sometimes the owner of the medium thinks the product that is being advertised is offensive, like NC-17 or adult movies, or condoms. Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. A. Lanham Act An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. A. A. (b) Why is a binary predictor sometimes called a "shift variable"? C. National Association of Broadcasters E. lodge a class action suit for customers who have been in some way negatively affected by the ad. these are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices, if the ftc believes a claim to be deceptive, the company can voluntarily agree to terminate the advertisement and never use the claim again, also known as a consent order or decree is a written agreement between the commission and the advertiser in any representations that would be deceptive or could not be substantiated if made directly by the advertiser, the commission can issue an order to stop the particular advertising claim, the commission asks advertisers to prove all the claims made in the advertisements, the ftc forces the advertiser to inform the public that in the past it has not been honest or misleading, the ftc can seek an injunction to immediately stop advertisements that it believed to violate the law; the agency will only use this power in those instances where the advertising can cause harm, these can be issued to regulate advertising through an entire industry, 1) The advertiser can agree to sign the agreement, and the commissioners vote to accept the agreement. Remedies for deceptive and unfair advertising, Require Substantiation 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. 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. D. discourage comparative advertising. D. corrective advertising. -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? Advertisers don't like the publicity that accompanies a charge of false 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. B. a commercial that was rejected at the storyboard stage is accepted at the final stage. -shared Postal Service 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. C. avoid self-regulation. which of the following is CORRECT regarding the death benefit amount? Unfairness -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. -commissioner's name, the new jersey life and health guaranty association protects life insurance death benefit claims up to.. E. a commercial is rejected at the idea generation stage. Federal Communications Commission C. American Association of Advertising Agencies The test is whether the consumer's interpretation or reaction is reasonable. The good news for consumers is that they sometimes get part of their money back. -budget is $300 million B. The judge also has the authority to dismiss the case. E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? C. Bureau of Alcohol, Tobacco and Firearms is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. Cease-and-desist orders: A. both an encoding and a decoding tool for communications. WebRegulatory concerns never play a major role in the advertising decision-making process. A. unfairness w & x \\ -receive matching funds to expand public assistance programs Each violation of such an order may result in a civil penalty of up to $16,000. Significant omission of important information. 0 & 5 Bureau of Economics The new law permits state and local governments to: This is an example of: C. Federal Communications Commission A. cease-and-desist order -partially insured E. Central Hudson, The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices including those in advertising. C. refer the matter to an appropriate government agency. -waiting period C. is important to consumer and would likely have an effect on the purchase decision. What message, either explicitly or implicitly, does the ad convey? 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. The law originally required consumers to re-register their numbers every 5 years to remain on the registry. You see an advertisement for a book that claims to show how you can make $1 million with no risk and with no money down. E. Treasury Department, Which of the following agencies is responsible for tax collection for the liquor industry? A. deceptive advertising. D. run the promotion only in the state where the Super Bowl is being held. The division of Broadcasting C. if the ad uses puffery. -Sellers invested huge sums in building product images and establishing product claims. C. NARC takes longer to solve a case when compared to Federal Trade Commission (FTC). A. 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. It is difficult for courts to reverse an FTC ruling. -employer C. Electronic Retailing Agency. -producer E. the consumers may sue the company for non substantiation of the ad. -human resource department B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. A. This remedy is infrequently used. -Maybe 3,000 E. Most media reject political ads. protects insured from insurance company insolvency. D. Trademark Improvements Act 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. -are the only ones to involve courts 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. A. Ad substantiation In dealing with false advertising, the FTC's greatest enemy is the time needed to bring an action against an advertiser. E. advertising substantiation. But if the commissioners support an administrative law judge's ruling against an advertiser, the order becomes law after it is finalized by an appellate court. A. C. puffery legitimization It has its own standards of practice and creative code. that has no correct answer. State regulation of advertising predates federal regulation buy several years. -This act makes it illegal for competitors to make agreements with each other that would limit competition. 1. the reinstatement provision in a health insurance policy is in which of the following situations would the insurer be liable for a loss? WebTerms in this set (100) Advertisers are often supportive of voluntary self-regulation because: s self-regulation is viewed as a way of limiting government interference of advertising. -notify the existing insurer of the proposed replacement 1. A. deception; legal E. selective disclosure, As per FTC, _____ occurs when qualifying information necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed. C. First-Amendment Analysis Typically the advertising campaign is already over. Which of the following statements concerning advertising by attorneys is true? A. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: A material misrepresentation or practice is one that is likely to affect a consumer's choice of a product. 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. A promotion such as a contest or sweepstakes can avoid being considered a lottery or form of gambling by: *In a nutshell, the FTC's rules against deceptive advertising break down into 2 critical components:* That obviously can add up very fast. Corrective Advertising A. selective exposure D. fairness. Laws banning false advertising exist at both the state and local levels, but tend to be applied half-heartedly. This is a written agreement between the commission and the advertiser in which the advertiser agrees to refrain from making specific reduct claims in future advertising.
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