NAME

Question types


Start with


Question limit

of 67 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. Children's Advertising Review Unit (CARU)
  2. Federal agencies other than the FTC that can regulate
  3. What are the pros/cons with government regulation
  4. Old Definition of Materiality
  5. Concerns of children's advertising
  1. a In 1974 it added onto NAD/NARB, unit tasked with focusing only on children's advertising (Kellogs and Matel chipped in to help form it). It was small but fairly effective
  2. b "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. c 1. 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
  4. d FDA (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
  5. e Pros - Universal reach, Compulsion (definitive means of compulsion)
    Cons - Oppressive, Ineffectual, Costly, Rigid, Conflicting laws, weakly enforced

5 Multiple choice questions

  1. 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.
  2. 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.
  3. Used a tv demonstration that highlighted the super moisturizing abilities of Rapid-Shave. Showed the razor shaving a sheet of sandpaper but the problem was that is was actually plexiglas not sandpaper. The FTC say this as deceptive because it showed fake proof. This case went all the way to the SC who upheld the decision but it lead to disclaimers in advertisements
  4. 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
  5. 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 True/False questions

  1. materialityDeceptiveness, 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. ImpliedHarder to prove. The FTC must prove that there is a difference b/t the conveyed message and the product attributes

          

  3. Important criteria the FTC uses in determining which ads to 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. PufferyProbability

          

  5. How and when did states begin regulating national advertising(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.