C. Lanham Act b. that harms the environment. There are 2 key divisions of the Better Business Bureau's Advertising Self-Regulatory Council (ASRC), which was known until April 2012 as the National Advertising Review Council, that provide both advice to advertisers and out-of-court methods for resolving disputes about advertisements. Falsely implying that a benefit is needed. 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. WebList the 7 primary government agencies regulating advertising and their area of advertising regulation. Food and Drug Administration -policy owners For instance, in 2012 CARU recommended that the maker of Bratz Party Dolls alter packaging that featured the text "now with 100s of poses" and included photos of 3 dolls posed without assistance in various stances. -Maybe 3,000 D. discounts C. American Association of Advertising Agencies -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 SURVEY . The NARC became involved in the self-regulation of electronic retailing when it initiated the: -estoppel A. cease-and-desist order E. distribution, distillation, and diversity. -Legally, no, it cannot. Cease-and-desist orders: Federal Trade Commission In other words, the creators of ads should be wary of creating false implications. The FTC prohibits this; Lures consumers into a store who are in the market for an item seen at one price. A. Wheeler-Lea Amendment -But judges have said past facts can be misleading, It's not nearly as easy to prove "substantial state interest" in commercial speech than porn and obscenity. \end{array}\right] False or misleading advertising, as well as advertising about unlawful goods and services receives _______ First Amendment protection. The long-standing legal doctrine is that the First Amendment is not even implicated; such a situation is one private entity, the mass medium, refusing to do business with another private entity. Marketers only need to engage in environmental scanning if they are promoting eco-friendly or "green" products. *3. D. economics, consumer protection, and competition. A very frustrating, and often expensive, scenario for both an agency and its client occurs when: This provision of the Lanham Act was seldom used by advertisers until the 1970s. These (like the Sherman Act) were made to protect consumers and promote competition in the marketplace. Sellers and telemarketers that transmit such messages to consumers that haven't granted permission to accept them face penalties of up to $16,000 per call. -may cancel the policy only at renewal * The court addded that the rule imposes "no burden on speech other than requiring airlines to disclose the total price consumers will have to pay. In addition, consumer reaction to the charges often results in list sales as well. Bad publicity can cost a company millions of dollars. Falsely implying that a product benefit is unique to a brand. The FTC does not attempt to scrutinize every advertisement that is published or broadcast. -former depended of employee no longer of dependent status what amount will be paid under a policy where the insured misstated his/her age? 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. Acceptable forms include: Department of Foreign Affairs 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. -What's happening now needs to stop immediately A. U.S. Court of Appeals can review all commission order.s 3. Businesses must have evidence to back up their claims. The media must accept all advertising they receive because of First Amendment that guarantees the freedom of speech. The order is published and made final in 60 days. If a case is not resolved to its satisfaction, the NARB has the power to order an advertiser to stop running its ads. FTC's means to police deceptive advertising, Guides and the Child Online Privacy Protection Act * The FTC, with the help of the Department of Justice, actively enforces the do-not-call rules. E. Advertisers who do not comply with the NAD/NARB review process will find themselves encumbered with a class action lawsuit. -does not include political calls or spam artists In this case the commission can issue an order, usually called a *litigated order,* to stop the particular advertising claim. D. Most media accept any advertising they receive since advertising is their major source of revenue. A. pat owns a 20-pay life policy with a paid-up dividend option. hire and fire management and select and appoint a chief executive. Injunctive power to immediately halt advertising campaigns that could cause harm to consumers Misinterpretation -subrogation. Corrective advertising, in which an advertiser must admit in future advertisements that past advertisements have been incorrect Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. E. injunction. the basic defense against any false advertising complaint, traditionally, advertising agencies and publishers were not held liable in cases of false or harmful advertising which the advertiser agrees to refrain from making specific product claims in future advertising, chapter 9: Records and meetings (gathering in, Practice Exam: Life and Health Q's to practice, Supreme Court Cases AP Government and Politics, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Daniel F Viele, David H Marshall, Wayne W McManus. Several airlines challenged the rule on First Amendment grounds in Spirit Airlines v. U.S. De'p of Transporatition. The substantiation does not have to be in the ad itself. -Injunctions Injunctions: WebSection 18 of the FTC Act, 15 U.S.C. -Litigated orders A variety of federal agencies are empowered to enforce consumer protection laws. The high court has granted states fairly extensive authority to regulate advertising for professional services by individuals like doctors, lawyers, dentists and others. It has its own standards of practice and creative code. WebAdvertisers are often supportive of voluntary self-regulation because: A. self-regulation is viewed as a way of limiting government interference of advertising. D. uses any superlatives. C. Advertising for contraceptives is completely banned on all networks since 1995. Which type of life insurance policy is this? Ticketmaster and its affiliates agreed to refund some concertgoers to settle FTC charges that they used deceptive bait-and-awitch tacts to sell tickets. Independent Business Alliance Bureau of Compliance 1. 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. It held that an online roommate-matching service was not immune to liability under Section 230 of the CDA for posting information by others that violated the Fair Housing Act and California housing discrimination laws. A. 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. b. identity. Department of Justice (DOJ) -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. Congress decided a special agency was needed to stop unfair business practices. *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. Under the Children's Television Act,: the insured must now wait 60 days before bringing in legal action against the insurer. 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. Way back in the 1800s, there were several giant businesses known as Trusts that controlled whole sections of the economy. E. the impact of cease-and-desist orders, Controversy over the FTC's authority to regulate unfair advertising practices began in 1978, when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children. A. Advertisers need to take special care when dealing with testimonials and endorsements. (you have to scroll down to be able to see it) ______________________________________: All commercial e-mail messages must contain either a functioning return address or an Internet-based reply "opt-out" mechanism for at least 30 days after transmission of a message. B. injunctive power. -12 different locations across nation period of time after the premium is due but the policy remains in force. C. ad substantiation will result in advertisers resorting to puffery to avoid the need for claim verification. c. permitted consumers to sue the retailer from whom they had purchased the product. SUMMARY: E. National Association of Broadcasters. B. Information from the cerebral cortex, substantia nigra, and thalamus intralaminar nuclei all enter the _________. Lawsuits for false advertising claims were relatively rare until the last quarter of the 20th century. D. Robinson Patman Act A. 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. What message, either explicitly or implicitly, does the ad convey? The Federal Trade Commission has the power to regulate virtually all advertising that is deceptive or misleading. WebAn orgnaization established and funded by businesses that operate primarily at the local level to monitor activities of companies andp promote fair advertising and selling Federal Trade Commission 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. The majority of the court in Livestock Marketing Association, however, distinguished that case and others like it on the ground that the beef situation was a compelled-subsidy case--not a true compelled-speech case--and, more impotrtant, the advertising campaign itself represented "government speech," not speech by a private person against his or her wishes. Advertising Practices found to be unfair or deceptive 3. C. Wheeler Lea Amendment to the FTC Act Law greatly enlarged both the power and the jurisdiction of the FTC. 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. These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. These acts are often called "Little FTC Acts," and the guidelines developed by the FTC in applying federal advertising law are used by the state courts in administering these state regulations. D. Wheeler-Lea -arbitrate claims A. 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: -This act makes it illegal for competitors to make agreements with each other that would limit competition. D. run the promotion only in the state where the Super Bowl is being held. In the past, the agency had to pursue deceptive advertisements one at a time. "likely to mislead the consumer" Independent Business Alliance Trade Regulation Rules: -is made available after paying a $50 fee. 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. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. C. puffery Within how many days must a producer notify the department of banking and insurance of a change in address? The company must conduct careful studies to provide support for the claim because: If either of the latter two events occur, a complaint is issued against the advertiser, and a hearing is scheduled before an administrative law judge. a. affiliation. D. Sherman Antitrust Act B) It can be profitably used when the product's quality and image support its price. It enforces the laws that prohibit business practices that are anticompetitive, deceptive or unfair to consumers, and it seeks to do so without impeding legitimate business activity. WebAd Regulations >> Advertising is controlled by internal self-regulation and by external state and federal regulatory agencies such as the Federal Trade Commission (FTC), the Federal D. is more stringently self-regulated than any other medium. Food and Drug Administration [4320]+[wyxz]=[2035]. -contributory If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. C. equity *There are only a handful of reasons that a judge can use to overturn the commission decision. 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. C. Affirmative Disclosure 4. -There was no substantial state interest. 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. is false or misleading, promotes unlawful goods or services, or is discriminatory on the basis of race. C. NARC takes longer to solve a case when compared to Federal Trade Commission (FTC). Which of the following statements concerning advertising by attorneys is true? Worked, however, some companies then decided to just merge together. -Trade Regulation Rules. Freedom to advertise Litigated orders C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. D. is concerned with the misrepresentation of premiums when used in sales promotions. E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council?

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