5 Written questions
5 Matching questions
- Joey Suzu
- Deceptive Advertising
- What is a "little FTC act"
- Invisible floating device case
- Consumer Credit Protection Act
- a 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.
- b The device wasn't invisible, but that it was inconspicuous. So in appeal they decided not to go so far to protect someone who thinks its actually invisible; only the foolish or feeble minded would believe that.Lead to the reasonable man standard
- c An ad is _______ if there is a representation, omission or practice that is likely to mislead consumers acting REASONABLY under the circumstances and it is MATERIAL.
- d Can regulate what claims are made about credit in advertising
- e A law that in large part does what the FTC does, but on the state level. 1960s: Nader & American Bar Association (ABA) claimed that FTC did a lousy job of protecting consumers. FTC claimed they did not have enough power so "little FTC act" was created at the state level.
5 Multiple choice questions
- 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.)
- Cease and desist still allows the company to earn profit from the advertisement, while corrective advertising takes into consideration residual profit (profit after not running the ad) and the decay of the ad once it is pulled.
- The Lanham Act allows competitors to sue, the FTC is only the government. Also this act allows punitive damages. You can sue for 3x damages, meaning that you can earn 3x what you lost on the competitors infringement on your trademark. You can also sue the competitor for the profits they made.
- 1. potential harm of the claim
2. The number of people affected
3. Political visibility of the case
- 1. 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 True/False questions
National Advertising Division (NAD)/National Advertising Review Board (NARB) → This group is in charge of advertising self-regulation in the US. It is a division of CBBB. If NAD gets a lot of complaints about an advertiser they look into it. The NAD is selective about protecting competitors. Is solely about protecting public interest. The National Advertising Review Board (NARB) is were advertisers can go to appeal a decision. A panel made up of 3 advertisers, 1 ad agency and 1 public rep. hear the case then the NARB hands down the decision to the advertiser. The NARB can enforce via press release / hand case over to the FTC
Misdescriptive name → Names can have a primary and secondary meaning. If the consumers know the primary meaning and not the secondary meaning that the ad is implying then it is considered deceptive. EXCEPTION: something has existed so long that it precedes the FTC. It is grandfathered in (ex. 2x4). Cases Aspercreme case and cashmora sweather case
Evaluative/Implied claims → These are the hardest claims to prove b/c it is a matter of opinion. The FTC will most likely NOT attack evaluative claim,s but there have been some regulation on them. Examples Vivarin Case/Wonder Bread Case
Consent Orders → Some judges weren't happy with how Section 13B only issued a temporary injunction. So judges decided that they were going to order advertisers to pay money back to the consumers. This was a real threat to consumers and opened up new opportunities for the FTC. It was also only supposed to be for the worst cases but the FTC finds many cases to be the worst.
Puffery → 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