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. WebStudy with Quizlet and memorize flashcards containing terms like Any administrative action taken against a producer MUST be reported to the director within ___ days after the final disposition., How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?, According to the Affordable Care Act, new health Insurance Trade regulation rules have had a great deterrent effect, as they comprehensively delimit what constitutes an illegal practice. The test is whether the consumer's interpretation or reaction is reasonable. -guaranteed insurability rider, the commissioner may 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. The FTC does not presume that the claims are false or misleading. -Missouri law banned billboards about SOBs to take down these buildings A. Competition c. permitted consumers to sue the retailer from whom they had purchased the product. Importantly, under the doctrine of "falsity by necessary implication," a company's claims about particular aspects of its product may necessarily imply more sweeping claims about that product, and these implied claims also may be literally false within the meaning of the Lanham Act. The burden is on the government to disprove the advertiser's claim. 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. C. if the ad uses puffery. Several developments propelled the growth of Lanham Act false advertising activity: -may never raise premiums, maria the agent would like to advertise an annuity product on a highway billboard. *2. A. Which of the following statements concerning advertising by attorneys is true? FTC's means to police deceptive advertising, Guides and the Child Online Privacy Protection Act The FTC does not attempt to scrutinize every advertisement that is published or broadcast. is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. 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. B. is regulated through codes developed and enforced by the Federal Trade Commission. d. generativity. 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? Federal Trade Commission. D. economics, consumer protection, and competition, Which division of the Federal Trade Commission would deal with antitrust and consumer protection investigations? 2) The advertiser can agree to sign the agreement, but the commissioners reject it. If an ad represents, wither directly or by implication, that the endorser is an expert, then the endorser's qualifications must in fact give him or her the expertise that he or she is represented as possessing with respect to the endorsement. The problem for Roommates.com was that it solicited specific content from users and forced them to use pull-down menus with questions featuring specific answer options in which they could express illegal and discriminatory views. -Substantiation A. U.S. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: The FTC prohibits ___________________________, which it defines as "an alluring but insincere offer to sell a product to service which the advertiser in truth does not intend or want to sell. Trade regulation rules, guides & Child's Online Privacy Protection Act, FTC issues industry guides for a variety of products, services, and marketing practices. B. consideration Falsely implying that a test is scientifically conducted. US Postal Service (USPS) Responsible for regulating direct mail advertising and By July 2012, the FTC had brought a dozen enforcement cases targeting illegal robocalls, with violators paying $5.6 million in total fines. Advertising which praises the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally stating no specific facts. If this happens the order is published and made final in 60 days. -insured employee Suggesting that a trivial difference is important. 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. As a discipline, marketing is not affected by things that occur outside of the firm's control. E. National Association of Broadcasters. 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. Which of the following statements is TRUE? D. National Association of Broadcasters period of time after the premium is due but the policy remains in force. Law of Agency DRAFT. voting power on major issues and ownership in a portion of the company. -The test of false advertising, for years a complex configuration of criteria, was reduced to basically 3 parts: He drives every day and never drives the same car two days in a row. There was time when competition between businesses hardly existed. -very easy for FTC to obtain In either case, the losing side can appeal to the federal trade commissioners for a final ruling. When advertisements or sales practices are targeted to a specific audience, such as those aimed at children or people who are elderly or terminally ill, they will be viewed from the perspective of a reasonable member of that group. w & x \\ A. commercial speech. -It became somewhat easier for plaintiffs to win Lanham Act false advertising suits. E. if the ad runs for more than six months. ) B. consent order The CAN-SPAM Act does not provide for a private legal cause of action or remedy for spam recipients. A. employment, national security, and trade. spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. National Advertising Review Board Is this message false or misleading? c. secured First anti-trust law was passed in 1890: the Sherman Act. Unfairness WebA) It is effective in situations in which competitors are able to undercut prices easily. In fiscal year 2012, the FTC had more than 1,000 full-time employees and a budget of $313 million. E. remuneration. -Advertising, as a part of the marketing mix for all products, took on more importance in the past 50 years. Central Hudson The FTC enforces rules regarding endorsements of products and services by consumers, celebrities, experts and organizations. E. U.S. Department of Welfare. Instead, the FTC's guides would be revised such that testimonials that do not depict typical consumer experiences should be accompanied by a clear and conspicuous disclosure of the results consumers can generally expect to achieve from the advertised product or program. Such an agreement saves the advertiser considerable legal haste, publicity and money, all especially desirable since the advertising campaign is over or almost over. D. Most media accept any advertising they receive since advertising is their major source of revenue. -conduct investigations D. Freedom of speech -estoppel The advertiser is not responsible for every interpretation or behavior by a consumer. B. A. Distribution . -Trade Regulation Rules. (a) What is a binary predictor? B. E. the FCC is granted the right to fine advertisers who exceeded advertising limits as defined by the act. A. Puffery is illegal. Most commercials once rejected cannot be rerun. _________________________: The act proscribes as "aggravated violations," warranting additional civil and commercial penalties, (a) e-mail "harvesting" or the knowing use of harvested addresses, (b) the automated creation of multiple e-mail accounts used for commercial e-mail, and (c) the use of unauthorized relays for commercial e-mail messages. D. STP Corporation. ", courts have developed this to articulate just how much first amendment protection advertising receives and the criteria the government must satisfy to permissibly regulate it, false or misleading advertising, as well as advertising about unlawful foods or services, receives, truthful and non-misleading advertising about lawful goods and services receives an __________ _______ of first amendment protection. C. puffery. National Association of Broadcasters Federal Trade Commission The students had a right, in other words, to not speak. *Qualifying disclosures must be legible and understandable, the FTC has ruled. 1. * -Maybe 3,000 Under section 5 of the FTC Act (as amended by the 1938 Wheeler-Lea amendment), the FTC is responsible for regulating: According to FTC policy, a trade practice or action is "unfair" if it: "the Commission will find deception 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", "a misrepresentation, omission, or practice" 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 A. c. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. Litigated orders to advertisers to terminate a particular advertising claim, failure to comply with which can result in severe penalty 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. B. premiums WebAdvertising regulations exist in order to Demonstrate full and truthful disclosures to the public The purpose of Advertising regulations is to assure full and truthful disclosures to A. rebates and refunds D. corrective advertising. Media can refuse to accept or restrict the timing of ads that violate standards of truth or good taste. More part of the new law is that the endorsers may also be subject to liability for their statements. It is also important to remember that an ad may mislead because it omits material information. These are the probabilities that he drives each of the other cars the next day: Pr(\operatorname{Pr}(Pr( Ford after Audi )=0.7Pr(VW)=0.7 \quad \operatorname{Pr}(\mathrm{VW})=0.7Pr(VW after Audi )=0.3)=0.3)=0.3 D. Sherman Antitrust Act FTC Definition of False or Deceptive Advertising: advertising regulations exist in order to? -An advertiser may use an endorsement of an expert or celebrity only as long as it it has good reason to believe that the endorser continues to subscribe to the views presented. *There is an "established business relationship" (EBR) exception to the do-not-call provisions* that allows a company to call a consumer with whom it has such a relationship, even if the customer's number is on the registry.

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