5 Written questions
5 Matching questions
- 7 Privacy Issues on the Internet
- What is Section 13B
- What is a "little FTC act"
- Evaluative/Implied claims
- 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 Section 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.
- c 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
- d 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.
- e 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
5 Multiple choice questions
- 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.
- 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.
- 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
- 1. Type of claim
2. Type of product advertised
3. Consequences of the false claim
4. Benefits of a truthful claim
5. Cost of developing substantiation - FTC will also consider how much time/money goes into substantiating the claim
6. What experts in the field think is reasonable
- 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.
5 True/False questions
National Advertising Division (NAD)/National Advertising Review Board (NARB) → 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
Federal agencies other than the FTC that can regulate → 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
7 major problems in regulating the Internet → 1. Privacy (spam-intrusiveness/phishing=misuse of private info;gathering personal information, gets enough info and can get into bank account etc.)
3. Protecting children
4. vary from state to state
5. Social Problems - Internet addiction to tobacco industry's own website
6. Copyrights and trademarks - easy to copy and steal other's publications
7. Regulation - who is going to regulate/who is in charge of the Internet
Examples of 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.
Arguments against comparative advertising → 1. Campbell's Soup - Claimed to have more meat/veggies in their soup, but used marbles to make the chunks rise to top. (1970) Banzhaf's students Students Opposing Unfair Practices (SOUP). However, this case was strong enough to implement a Cease and Desist order, so turned to Listerine Case.
2. Listerine - Had been telling consumers for 100 years that Listerine would prevent colds, which was a lie. By the time the FDA was formed, Listerine had already made the claim so the FDA grandfathered in the claim, but prevented others from making the claim. Listerine had to disclose: "Contrary to prior advertising, Listerine will not help prevent colds or sore throats or lessen their severity." Listerine appealed and the FTC decided Listerine could take out the first four words because it was too much like punishment.