5 Written Questions
5 Matching Questions
- Consumer Credit Protection Act
- How much can the FTC fine you for deceptive adv.
- Old Definition of Materiality
- Reasonable Man Standard
- a FTC decided they would only protect those acting reasonably under the circumstances. Examples of unreason-ability (Clairol case and Invisible floating device case). Used to be the ignorant man standard.
- b If the ad says "the color is blue". In this case the FTC has to look at the message and assume that the conveyed meaning and literal message are identical.
- c Can regulate what claims are made about credit in advertising
- d "The natural and probable result is to cause one to do that which he would not otherwise do." Ie. If you knew the crystals were blue and not green would you still buy the product - yes!
- e The FTC cannot punish so they cannot fine anything BUT Congress can fine advertisers for violating the order given by the FTC to cease and desist or whatnot. The fine from Congress use-to-be $5000 but today it is $10000
5 Multiple Choice Questions
- What he says is false but no one believes him. He is an example of being false and non deceptive. Since no one believes him, no one is getting hurt and therefore it is not deceptive. He is a spoof.
- Comes from the Balkan wars where territories were broken up. Advertising regulation would break up into a lot of parts and there would be no unified regulations so any national advertiser would face completely different laws from state to state. As a result the National Association of Attorneys General (NAAG) said the FTC had a point and created guidelines that said if you follow them you will stay out of trouble.
- "Likely to affect their choice of, or CONDUCT regarding a product." Conduct includes driving to the store and not necessarily buying the product. The mere act of getting someone to go out of their way is enough to be material. This occurred during the Reagan administration
- (1969) Nader and the ABA conduct studies that claimed that the FTC was doing too little to protect consumers. The FTC claimed that they didn't have enough man power to regulate everything. FTC suggested that the states help out with the "Little FTC Act". Abrams in NY did a lot of regulation because so many ads were created in NY. Jim Maddox (TX attorney general) started regulating any national advertisement done in TX. This resulted in balkanization.
- If you make a claim that endangers someone's safety these act can regulate.
5 True/False Questions
FTCs purpose → The FTC went too far in this case. ______ was charged with deceptive advertising for selling permanent hair color. The FTC thought that the word permanent would mislead women into thinking that it would color hair that hadn't grown out yet. A woman testified about the third person effect of this. People complained and said that the FTC had gone too far to protect ignoramuses. Help lead to the reasonable man standard.
Corrective Advertising → ______ is the FTC's version of the "scarlet letter". involves admitting that the deception is made and correcting the mistake. However, the problem is that the FTC is not supposed to punish.
materiality → Deceptiveness, 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.)
Social-psychological representations/Evaluative claims → Consumer Credit Protection Act
Consumer Products Safety Act
Lanham Trademark Act
Fur Products Labeling Act
Flammable Fabric Act
Misdescriptive name → A character of Edgar Bergen's, a famous ventriloquist from the 1950s. He represents the least common denominator of intelligence. The FTC said that their protection is for experts, and "ignorant, unthinking and the credulous." Snerd represented the "ignorant man standard," which was later replaced by the reasonable man standard.