advertising regulations exist in order to quizlet

In 2008 legislation was signed under which numbers placed on the list remain on it permanently unless consumers specifically request a number's removal by calling 1-800-382-1222. Will you buy the book? 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. 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. d. adopted the principle of strict liability. In most cases they probably will not go to that expense. WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. Information pertaining to the "central characteristics of the product or service" is usually considered to be material. Children's Advertising Review Unit (CARU) *Child Advertising Review Unit (CARU)*. 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. Freedom of using any media vehicle 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. 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. Guides or advisory opinions that attempt to outline in advance what advertisers may say about a product C. affirmative disclosure. 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. In addition, many local governments have consumed,er protection laws that apply broadly to false advertising. The most commonly used FTC remedy is the consent agreement, or _____________________________. These trusts were monopolies; they combined all competition into one company so they could control the price. C. coercion First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. -may cancel the policy only at renewal B. Policies and procedures for self-regulation of advertising industry are established by the ____. -defer all costs to the federal government for public assistance programs, receive matching funds to expand public assistance programs, ownership of a life insurance policy may be temporarily transferred with a(n), replacement regulation is designed to protect the interests of 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.") all commercial e-mails must disclose a) it is an advertisement or solicitation, b) an opt-out mechanism, and c) a "valid physical postal address.". Many areas of consumer and trade promotions are regulated by the _____ through the Marketing Practices Division of the Bureau of Consumer Protection. A licensed producer MUST be __________ by an insurer to be WebMarketers should monitor developments outside a firm's control in order to detect and respond to threats and opportunities. Competition The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are: By December 2013, the Do Not Call Registry included more than 223 million active phone numbers, including both landline and wireless phones. *10-Day Prohibition Period* The hearing is a lot like a trial, only more informal. -$500,000 III only. b. product safety. C. contradictory option Weba. There must be a representation, omission or practice that is likely to mislead the consumer* 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 ____. D. Robinson Patman Act D. A consent order prohibits an advertiser from making a specified advertising claim for 30 days. -all serve 7 terms -if you send spam (unsolicited messages) there must be an opt-out option WebWhen the Commissioner of Insurance requests a producer's business records, the must be produced. Which of the following programs is more likely to be the most controversial of all the Federal Trade Commission's programs? A promotion such as a contest or sweepstakes can avoid being considered a lottery or form of gambling by: Self-regulation begins with the interaction of client and agency when: D. creative ideas are generated and submitted for consideration. B. Freedom to advertise 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. Vision Council of America B. According to the FTC's definition of deception, a representation, omission, or practice has materiality if it: spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. President Theodor Roosevelt broke up many Trusts by making anti-trust laws. Today, an individual can file a complaint online from the FTC's website. E. NARC is a government agency regulating advertising agency. A. a commercial is rejected at the storyboard stage. Better Business Bureau 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. -Maybe 3,000 -company's true corporate name Voluntary compliance: 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." -fully insured A. U.S. A. materiality. C. selective retention. The FTC has many remedies to regulate deceptive or untruthful 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. -This act protects American consumers even more by preventing mergers or acquisitions that are likely to stifle competition. C. if the ad uses puffery. D. Electronic Retailing Self-Regulation Program (ERSP). Injunctions: 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. E. remuneration. The act or practice must be considered from the perspective of a consumer who is acting reasonably. The government justified the rule by arguing that it sought to discourage young drinkers from buying a particular beer or malt liquor because it had the highest alcohol content. E. McDonald's. Vision Council of America -completely insured, joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. D. U.S. Department of Welfare * C. The media can refuse to accept individual ads they find offensive or objectionable. D. misleading omission B. puffery. 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. Which of the following statements concerning advertising by attorneys is true? There is just an agreement not to repeat that particular claim in future advertising campaigns. Consumer Redress, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Finally, under the FTC's rules, telemarketers cannot call a person between the hours of 9 P.M. and 8 A.M. unless the person has given prior consent to such late-night, early-morning calls. 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. 4 & -2 \\ There has also been a rapid increase in lawsuits brought by advertisers against one another under Section 43(a) of the Lanham Act. Federal Trade Commission Act -establish new insurance laws, establish continuing education requirements, which of the following is true concerning the proceeds of a life insurance policy? When a complaint is received, FTC staff attorneys examine it to see if it has merit. E. National Association of Broadcasters. Corrective advertising, in which an advertiser must admit in future advertisements that past advertisements have been incorrect The following are all instances in which a court can overturn an FTC ruling: (1) "convincing evidence" that the agency made an error in the proceedings, (2) no evidence to support the commission's findings, (3) violation of the Constitution-for example, the agency did not provide due process of law, (4) the action goes beyond the agency's powers; (5) facts relied on in making the ruling are not supported by sufficient evidence, and (6) arbitrary or capricious acts by the commission. D. is more stringently self-regulated than any other medium. B. consumers need to know information about consequences, conditions, and limitations associated with the use of the product. D. discourage comparative advertising. A. 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. If you go to work at an advertising agency, you must understand that your agency may be held liable if it is an active participant in preparing a deceptive advertisement or if it knows or should know that an ad is either false or lacks substantiation. C. Corrective advertising B. Food and Drug Administration the treasurer of XYZ insurance discovers that the treasurer's company is being investigated by the banking and insurance commissioner. A. uses puffery. E. the advertising relies on the use of puffery to make its point. In other words, the government could focus its attention with the registry only on the problems caused by commercial sales calls without having to also sweep up and control problems caused by political and charitable calls. C. Freedom to stop the airing of any advertisement A. exchange Under the commercial speech doctrine and the Central Hudson test, the government may prohibit advertising (1) that promotes an unlawful activity or (2) that is misleading or untruthful. Remedies for deceptive and unfair advertising, Require Substantiation 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. -payor benefit Quizlet A. E. Trade Regulation Bureau, Which of the following divisions of the Federal Trade Commission protects consumers from deceptive and unsubstantiated advertising and enforces the provisions of the FTC Act that forbid misrepresentation, unfairness, and deception in general advertising at the national and regional level? Q. -Consent agreement New Jersey Laws and rules Flashcards | Quizlet The appellate court, however, rejected the unerinclusiveness argument, writing that "First Amendment challenges based on under inclusiveness face an uphill battle in the commercial specs context. -premium past due D. false substitution The representation, omission, or practice must be "material" such that it is likely to influence the purchasing decision. A. defined commercial speech. Rarely have these challenges been successful. D. fairness. B. B. consideration A. Within how many days must a producer notify the department of banking and insurance of a change in address? *Disclosure Requirements* A. require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. SUMMARY: Federal Communications Commission. They would, instead, rather spend their own money on distictinve advertising for a particular niche or premium variety of beef, such as organizally fed. The FTC considers certain categories of information to be more important than others when deciding whether a claim is material. What's more, the FTC made sure in 2012 that more than 477,000 consumers received monetary redress totaling $26.8 million. Which type of life insurance policy is this? Cease-and-desist orders: after an insured gives a notice of loss, what must he/she do if the insurer does not furnish forms? Trade Regulation Rules: The Federal Trade Commission has the power to regulate virtually all advertising that is deceptive or misleading. -may raise premiums at anytime -frequency of the premium payment B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. The regulation of deceptive or untruthful advertising is a difficult task maintained by the advertising industry, the mass media and governmental agencies. the role of the federal government was expanded when Medicaid was established by allowing the state to The commission evaluates the entire advertisement when examining it for misrepresentation. _______________________: Commercial e-mail messages that include "materially false or misleading" header information or deceptive subject lines are prohibited. Bad publicity can cost a company millions of dollars. WebA life insurable policy's advertising material MUST contain all of the following information EXCEPT: Agent's commission. Consent agreement As a discipline, marketing is not affected by things that occur outside of the firm's control. C. Bureau of Alcohol, Tobacco and Firearms The advertiser can agree to sign the agreement, but the commissioners reject it. In some cases it is not easy to distinguish political speech from commercial speech, as courts recently have observed. The next remedy on the ladder is voluntary compliance and is used for advertising campaigns that are over or nearly over. The media must accept all advertising they receive because of First Amendment that guarantees the freedom of speech. C. Affirmative Disclosure The representation, omission or practice must be material. Commercial Speech Doctrine. D. economics, consumer protection, and competition. II. *Considerable pressure is placed on the advertiser to agree to a consent order. WebGovernment may regulate advertising that. By 2010, the FTC had brought more than 60 telemarketing cases alleging do-not-call violations. C. National Advertising Review Board The courts have extended First Amendment protection to: Which of the following is the best example of the use of puffery in advertising? Endorsement of a product by an unqualified spokesperson or by a spokesperson who doesn't use the product. At this point either side can appeal to the commissioners to overturn the ruling of the judge. -Interstate commerce - anything that involves commerce between 2 states Federal Trade Commission 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. Individuals who are represented in the ads must be actual consumers, unless stated otherwise. E. Central Hudson Test, Federal regulation of advertising originated in 1914 with the passage of the _____ Act. B. ad substantiation. Again, this law provides little relief for consumers. -Stricter than the guide; actual rules; FTC does not tend to investigate certain issues; competitors or consumers usually are the ones to bring it to the FTC, Testimonials: Sometimes an advertiser doesn't want to sign a consent agreement. -medical underwriting, claims payable to a disability income insured, even when the insured can continue to work, are the result of a 2. -producer -$300,000 Drug companies must only submit their ads to us when they first appear in public. -guaranteed insurability rider, the commissioner may an agent is required to keep replacement forms on file for at LEAST __ years.. a producer who sells an individual life insurance policy in new jersey MUST deliver to the policy owner a(n), contain content approved by the commissioner, the names of the insurance companies represented by the producer C. Fairness Doctrine A. cease-and-desist -existing producers Way back in the 1800s, there were several giant businesses known as Trusts that controlled whole sections of the economy. 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. WebThe Louisiana Life and Health Insurance Guaranty Association. -The size of damage awards skyrocketed. Advertisers claimed the Registry violated their First Amendment rights to free speech. *Remember, a mass medium is permitted to reject any content it chooses, with or without a reason. B. kid vid B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. Chapter 20: Regulation of Advertising and Promotion 2. C. Wheeler Lea Amendment to the FTC Act -estoppel -notify the existing insurer of the proposed replacement 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. In particular, several telemarketing agencies filed lawsuits in 2003 against the FTC, alleging that it was beyond the scope of the FTC's jurisdiction to adopt the National Do Not Call Registry and claiming that the registry violated the First Amendment right of free speech of advertisers who use telemarketing. If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: 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. C. Lack of selective disclosure Texaco claimed its ClearSystem gasoline cleaned car engines, boosted mileage, and reduced pollution emissions better than any other gas. -No, it is not political speech. 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? *The decision marked a victory for privacy advocates but can be seen as a blow to the free speech rights of telemarketers. -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. B. offer only merchandise and no cash as part of the sweepstakes prizes. E. Network standards have become more stringent in response to competition from independent and cable stations. WebAn agency relationship exists when one person, the _____ acts for, or on the behalf of another person, the _____. in this situation, the treasurer may be found guilty of which of the following? Acme Tire is developing an advertising campaign that will claim cars with its new RX model stop 25 percent faster on wet pavement compared to other brands of tires. C. equity The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. Consent Decrees Chapter 15- Regulation of Advertising Flashcards | Quizlet Express claims as to the attributes of a product are always considered material. Under the Reagan administration, the controversial _____ Doctrine, which required broadcasters to provide time for opposing viewpoints on important issues, was repealed on the grounds that it was counterproductive. 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. 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. BBB is the largest and best known self-regulatory mechanism in United States, for controlling advertising practices, that has been established by the business community. It is difficult for courts to reverse an FTC ruling. 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. E. Treasury Department, Which of the following agencies is responsible for tax collection for the liquor industry? B. if the ad does not provide sufficient information to the consumers so as to make an informed decision. D. a commercial is approved at the storyboard stage but then is rejected after it is produced. But practically, it can regulate almost all advertising. All broadcasting stations are considered to affect interstate commerce. Advertising 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. E. avoid comparative advertising. -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. Until the bill was signed, the FTC was limited to dealing with unfair and deceptive practices that were "in commerce." -Not too often; almost as if a newspaper has to submit a retraction Federal Communications Commission E. Consumer Protection Act, The _____ gave the FTC the power to issue cease-and-desist orders and levy fines on violators. -treatment for alcoholism Significant omission of important information -name B. injunctive power. 1st amendment doesn't protect false/misleading ads or ads for unlawful goods/services.

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