5 Written questions
5 Matching questions
- Misdescriptive name
- Social-psychological representations/Evaluative claims
- Acts that can regulate advertisements
- FTC's 6 factors of an unclear claim
- 2 Major Concerns regarding children and the Internet
- a Consumer Credit Protection Act
Consumer Products Safety Act
Lanham Trademark Act
Fur Products Labeling Act
Flammable Fabric Act
- b 1. Kids are more susceptible to privacy and deception
2. Children advertising may not look like advertising
- c Names can have a primary and secondary meaning. If the consumers know the primary meaning and not the secondary meaning that the ad is implying then it is considered deceptive. EXCEPTION: something has existed so long that it precedes the FTC. It is grandfathered in (ex. 2x4). Cases Aspercreme case and cashmora sweather case
- d These are the I prefer... claims. They are different from factual claims. These claims have a higher potential to deceive b/c of perception differences. These "feeling claims" are very hard to prove. They are EXTRINSIC to the product (not a phsyical part of it). ONLY the consumer can EVALUATE if the ad delivered what it said. Examples - Seagrams gin is "smooth" AND "Feel like a man" AND Maxwell house instant relation.
- e 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
5 Multiple choice questions
- If you make a claim that endangers someone's safety these act can regulate.
- 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"
- 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.
- The device wasn't invisible, but that it was inconspicuous. So in appeal they decided not to go so far to protect someone who thinks its actually invisible; only the foolish or feeble minded would believe that.Lead to the reasonable man standard
5 True/False questions
Consumer Redress → The advertiser agrees to do whatever the FTC says to do. This is the way a case stops before a remedy is ordered. Advertisers do this because a. it is less damaging b. the legal process is expensive c. It is more negotiable at this point d. a cease and desist last forever e. the FTC rarely losses f. If an ad is published for so little time, you probably got your money's worth out of the ad, so what's the point in fighting the FTC
Industry Guides/Guidelines → 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
What is the black box process → 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
What is a "little FTC act" → 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.
New Definition of Materiality → "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