5 Written Questions
5 Matching Questions
- Why did the FTC change the substantiation rule
- Ways advertisers can get in trouble with comparative advertising
- How and when did states begin regulating national advertising
- Industry Guides/Guidelines
- Examples of deceptive mock-up
- a It put less pressure on the FTC to prove deception and it put more pressure on the advertiser to prove truthfulness. It shifted the burden of proof from the FTC to the advertiser. The advertiser is "guilty until proven innocent"
- b 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)
- c 1. Volvo - ran an ad intending to show the strength of their vehicles. Agency, Scaly McCaid, got screwed
2. Libby Owens Ford Glass - Vaseline on car window. FTC regulated because it was deceptive.
- d (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.
- e ONLY guidance/advisory; they are NOT LAW. If you stray from them, then you are in the danger zone and may be violating the law.
1.Bait Advertising: Ads that draw you in with a great deal and switch you to a higher priced item once you are in the store. The guideline is that you have to truly intent to sell a product advertised.
2. Guideline on the word Free: has to actually be free (ex: offering a washer for sale with a free bike, when you just upped the price of the washer).
3. Guidelines on endorsement
5 Multiple Choice Questions
- 1. Kids are more susceptible to privacy and deception
2. Children advertising may not look like advertising
- 1. Free speech
2. Better Knowledge (consumer sovereignty/the consumer receives more informaiton)
3. Lowers prices
4. Forces upgrades
5. May rpovide better informaiton
- 1. Honor/reputation
2. bootstrapping (pulling yourself up by others' bootstraps)
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
- 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.
5 True/False Questions
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
What advertiser was fined over a million dollars → The FTC will not reveal its exact methodology in choosing which cases to investigate because it does not want to give advertiser their game plan
How much can the FTC fine you for deceptive adv. → It put less pressure on the FTC to prove deception and it put more pressure on the advertiser to prove truthfulness. It shifted the burden of proof from the FTC to the advertiser. The advertiser is "guilty until proven innocent"
Spoof → A ______ is an obvious lie; they are falase facts that are not believed and are not deceptive. Two types of spoofs explicit and implied
Consent Orders → 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.