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5 Written questions

5 Matching questions

  1. Puffery
  2. Substantiation definition and types
  3. Social-psychological representations/Evaluative claims
  4. Benefits of comparative advertising
  5. 2 Major Concerns regarding children and the Internet
  1. a Definition: The basis for making a claim in an ad. Before the 1970s the FTC allowed any claims and tested it if doubted, now the FTC required evidence of "claims" BE ON HAND before being charged with deceptive adv. If an advertiser does not have it on file then they are found guilty.
    Types: Assumption, express claim (states the evidence in the claim), implied claims ("if 4 our of 5 doctors recommend it, it implies that 80% of doctors would agree", unclear claims ("this cleaner will remove stains from white carpet" harder to determine the substantiation. NEED at least a reasonable basis for this claim")
  2. b 1. Kids are more susceptible to privacy and deception
    2. Children advertising may not look like advertising
  3. c These are the I prefer... claims. They are different from factual claims. These claims have a higher potential to deceive b/c of perception differences. These "feeling claims" are very hard to prove. They are EXTRINSIC to the product (not a phsyical part of it). ONLY the consumer can EVALUATE if the ad delivered what it said. Examples - Seagrams gin is "smooth" AND "Feel like a man" AND Maxwell house instant relation.
  4. d General Definition - Opinions not believed to be facts and which are not demonstrably false. Example The leading brand
    FTC Definition - "Claims that reasonable people d/n believe to be fact AND which can't be proved true or false
    Colloquial Definition - Exaggeration or hyperbole (Preston); people know that companies overstate so the colloquial definition of puffery may be deceptive, but what the FTC has defined is not
  5. e 1. Free speech
    2. Better Knowledge (consumer sovereignty/the consumer receives more informaiton)
    3. Lowers prices
    4. Forces upgrades
    5. May rpovide better informaiton

5 Multiple choice questions

  1. Order advertisers to pay back money to consumers. It gives the FTC real power. The FTC is supposed to only use in the worst cases, but has found many worst cases.
  2. 1. Privacy (spam-intrusiveness/phishing=misuse of private info;gathering personal information, gets enough info and can get into bank account etc.)
    2. Deception
    3. Protecting children
    4. vary from state to state
    5. Social Problems - Internet addiction to tobacco industry's own website
    6. Copyrights and trademarks - easy to copy and steal other's publications
    7. Regulation - who is going to regulate/who is in charge of the Internet
  3. 1. Honor/reputation
    2. bootstrapping (pulling yourself up by others' bootstraps)
    3. Objectivity
    4. Consumers, not advertisers should decide which brand is better
    5. incomplete picture
    6. destructive to a specific market
    7. reduce credibility of advertising
    8. meaningful comparison is impossible
    9. consumer confusion
    10. help enemy
  4. 1. Type of claim
    2. Type of product advertised
    3. Consequences of the false claim
    4. Benefits of a truthful claim
    5. Cost of developing substantiation - FTC will also consider how much time/money goes into substantiating the claim
    6. What experts in the field think is reasonable
  5. This is a state regulation ("little FTC Act"). The main provision: "False, misleading, or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful." The minor Provisions: You can't use the state seal and state flag when selling a product, because it doesn't want to look as if the state endorsed the product
    -List of examples (not an exhaustive list): Passing off, confusion as to the source, misrepresentation as to the origin, pyramid schemes, turning back odometers when selling cars, etc.
    -Consumers can sue and ask for punitive damages (2x), and can get both the court fees and the attorney fees back if you win
    -States were encouraged to create their own trade practices by the FTC in the 80s
    -This act is like the FTC act b/c it protects against deceptive advertising but this act d/n protect against unfairness and this act allows consumers to sue.

5 True/False questions

  1. Colgate-PalmoliveDeceptiveness, alone, is not enough - in order to deceive the message must also be material; it must affect purchase behavior. It is okay to deceive if it is trivial. (If you photoshopped the building of a car dealership to a different color, this is deceiving, but a blue building is trivial, or immaterial.)


  2. materialityPossibility


  3. Federal agencies other than the FTC that can regulateFDA (Food and Drug Administration): Federal Food, Drugs, & Cosmetic Acts. Ads for food products, for example.
    FCC (Federal Communications Commission): Communication Acts. Things on TV can be controlled here
    SEC (Securities Exchange Commission): Can influence advertising for things in its jurisdiction


  4. Ways advertisers can get in trouble with comparative advertising1. Disparagement (tort) - protects a company, product or brand from being badmouthed/lied about
    2. Defamation - same thing, but about people - MUST be a lie (libel=written/slander=spoken)


  5. Consumer RedressThe advertiser agrees to do whatever the FTC says to do. This is the way a case stops before a remedy is ordered. Advertisers do this because a. it is less damaging b. the legal process is expensive c. It is more negotiable at this point d. a cease and desist last forever e. the FTC rarely losses f. If an ad is published for so little time, you probably got your money's worth out of the ad, so what's the point in fighting the FTC


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