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5 Written questions

5 Matching questions

  1. Lanham Trademark Act, Section 43 (a)
  2. New Definition of Materiality
  3. Children's Advertising Review Unit (CARU)
  4. Consumer Redress
  5. 7 Privacy Issues on the Internet
  1. a 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.
  2. b "Likely to affect their choice of, or CONDUCT regarding a product." Conduct includes driving to the store and not necessarily buying the product. The mere act of getting someone to go out of their way is enough to be material. This occurred during the Reagan administration
  3. c 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
  4. d Protects against a statutory version of palming off. It is a trademark law designed to make sure that someone who owns a trademark has protection over that trademark. Logos can be part of trademarks but they are not the same thing. Example: Two Pesos, which had a pink color like Taco Cabana, and looked a lot like it (and in reality was the old partner of Taco Cabana). Taco C won the case.
  5. e 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

5 Multiple choice questions

  1. Promotion of consumer protection and prevention of anticompetitive business practices.
  2. The states realized that there was no agency for rental cars so the FTC had no power over the states. As a result, the states wrote regulations for the rental car industry that required disclosure of information. Similar thing happened in food advertising. By the end of the Regan administration the FTC realized that it was not going to be able to keep states out of regulating national advertising so the FTC started to work with the states.
  3. 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
  4. Harder to prove. The FTC must prove that there is a difference b/t the conveyed message and the product attributes
  5. 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

  1. Oxydol ExampleDealing 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.


  2. Benefits of comparative 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.


  3. How much can the FTC fine you for deceptive adv.The FTC cannot punish so they cannot fine anything BUT Congress can fine advertisers for violating the order given by the FTC to cease and desist or whatnot. The fine from Congress use-to-be $5000 but today it is $10000


  4. SpoofA ______ is an obvious lie; they are falase facts that are not believed and are not deceptive. Two types of spoofs explicit and implied


  5. 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.