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5 Written questions

5 Matching questions

  1. Additional concerns (from public as response to FCC speech) for child advertising
  2. What are the pros/cons with government regulation
  3. Oxydol Example
  4. Ways advertisers can get in trouble with comparative advertising
  5. 7 Privacy Issues on the Internet
  1. a Pros - Universal reach, Compulsion (definitive means of compulsion)
    Cons - Oppressive, Ineffectual, Costly, Rigid, Conflicting laws, weakly enforced
  2. b Dealing with materiality. - In the early 1970s, it started advertising that it was the laundry detergent with the green crystals. The implication was that the green crystals made it better. You buy the laundry detergent and find out that the crystals are blue. You have been deceived because the crystals are blue NOT green but no one cares. It does not matter. This is an example of a trivial exception it is NOT material. No one will get hurt based on trivial deception.
  3. c 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)
  4. d 1. Intrusiveness (spam,popups,accessing personal info)
    2. Access to personal info (cookies, spyware, employee tracking, encryption technology)
    3. Deception - Can't see your face on the Internet
    4. Intellectual property - Easy to violate copyright laws
    5. Phising - misuse of private info
    6. Employee info
    7. Encryption
  5. e Additional concerns (from public as response to FCC speech):
    1. Causes disillusionment: When a product doesn't live up to a child's fantasy. (Ex: Sea monkeys on the back of the comic book.)
    2. Causes cynicism: Distrust created by advertising.
    3. Causes parent-child conflicts (Ex: Some children would throw fits when they didn't get what they wanted. Disciplinary problems would result from these ads.)
    The Bottom Line: Advertisers are bigger, and older, and smarter, and have a responsibility to uphold. It is unethical to use superior power to manipulate young minds. Advertisers are in the position to manipulate kids.

5 Multiple choice questions

  1. 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.
  2. Consumer Credit Protection Act
    Consumer Products Safety Act
    AntiTrust Acts
    Lanham Trademark Act
    Copyright Acts
    Fur Products Labeling Act
    Flammable Fabric Act
  3. Possibility
  4. Airlines were running ads offering great deals. However, the deals were misleading because there was only a few tickets at that price and the hotels were gross. States complained b/c the FTC was not doing anything. Guidelines forced airlines to publish a disclosure of limitations but the disclosure tended to take up 3/4 of the ad. The FTC didn't like this but there was nothing the FTC could do to stop the states. The Department of Transportation after some controversy was found to be in charge and threw out the airlines guidelines.
  5. Probability

5 True/False questions

  1. Deceptive AdvertisingAn 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.


  2. New Definition of Materiality"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!


  3. ExplicitPossibility


  4. Concerns of children's advertising1. Distortion of product performance: causing children to expect something that d/n pan out
    2. Confusion over prices: leads to disappointment
    3. Promoting poor nutrition habits
    4. Premiums that create artificial demand: showcasing toys as benefit of cereal
    5. surrogate salesmen (child begs parent for something)
    6. promise to affect mood or well being
    7. use of programmed character to sell products
    8. products/ads that might call psychological harm


  5. What is the black box processSection 13B was added in the mid 1970's to the FTC. It allows the FTC to step in and stop ads immediately, "stop until this case is decided." This was done b/c advertisers were being charged w/ deceptive advertising and running their ad and keep appealing in order to keep from having to stop running their ads, it would take years to make their ads stop. Section 13B is more powerful than an FTC remedy.


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