B. consent order according to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's adjusted gross income. B. Lanham Act Chapter 15- Regulation of Advertising Flashcards | Quizlet C. Fairness Doctrine C. ad substantiation agreement The students had a right, in other words, to not speak. A. Deception govt may regulate A. C. National Advertising Review Board E. National Association of Broadcasters, C. American Association of Advertising Agencies. An appeal of an adverse ruling by a circuit court can be taken to the Supreme Court, but only if certiorari is granted. E. National Association of Attorneys General, C. Bureau of Alcohol, Tobacco and Firearms, The _____ is a government regulation that is increasingly being used by companies to sue competitors for false or misleading advertising claims. In 2009 the FTC banned so-called robocalls (those annoying prerecorded commercial telemarketing calls to consumers) unless the telemarketing company has obtained written permission from a consumer to receive such calls. National Association of Broadcasters The government justified the rule by arguing that it sought to discourage young drinkers from buying a particular beer or malt liquor because it had the highest alcohol content. This agency was responsible for putting warning labels on alcoholic beverage advertising and The FTC has many remedies to regulate deceptive or untruthful advertising: Vision Council of America B. In addition to such legal action, the FTC also educates consumers and businesses to encourage informed consumer choices, compliance with the law and public understanding of the competitive process. A. require that consumers make a purchase of one of their products as a condition for entering the sweepstakes. The government's interest in reducing the amount of alcohol consumed by young people is a laudable goal, a unanimous Supreme Court said, but added that there is really no evidence this rule advances the goal. It is difficult for courts to reverse an FTC ruling. The court thus ruled in favor of the federal beef promotion program and its compelled subsidization of advertising to which some cattle ranchers aand farmers object. Department of Justice (DOJ) Information Technology If the endorser is an "expert," the endorser's qualifications must reflect his/her expertise in what he/she is endorsing. Therefore, it is consistent with the limits the First Amendment imposes on laws restricting commercial speech.". Webadvertising regulations exist in order to? C. The media can refuse to accept individual ads they find offensive or objectionable. 1. Misinterpretation the role of the federal government was expanded when Medicaid was established by allowing the state to E. Association of American Publishers, Which of the following is the appellate unit of the National Advertising Review Council? Which of the following statements about self - regulation by media is true? B. all clients and D. is concerned with the misrepresentation of premiums when used in sales promotions. Law greatly enlarged both the power and the jurisdiction of the FTC. 48 of those cases were resolved with court orders that cumulatively required payment of nearly $21 million in civil penalties and $12 million in redress or disgorgement of profits. The agency believes the typical reasonable consumer does not take such claims seriously and thus they are unlikely to be deceptive. The court addded that the rule imposes "no burden on speech other than requiring airlines to disclose the total price consumers will have to pay. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. E. U.S. Department of Welfare. Legislation is being considered that would either ban or impose major restrictions on Association of National Advertisers. A. U.S. -treatment for alcoholism B. Federal Communications Commission -If an ad represents that an endorser uses the product, then the endorser must have been a bona fide user of it at the time the endorsement was given and, in addition, the advertiser may continue to run the ad only so long as it has good reason to believe that the endorser remains a user of this product. B. affirmative disclosure -offer the insured a 60 day free look period, submit to the replacing insurer a list of the policies to be replaced. E. an illegal comparative advertisement. *10-Day Prohibition Period* Freedom to advertise A. exchange The FTC wanted to make sure consumers were not under any false impression that Doan's was a superior medication. National Advertising Division Native Advertising/sponsored posts - have come on the rise; it's important to be aware of Individuals who are represented in the ads must be actual consumers, unless stated otherwise. -Maybe 3,000 But the system was not necessarily working well. Does this message injure the plaintiff? Substantiation of advertisements, in which the advertiser must prove all claims made in an advertisement -divorced spouse of employee But Roommates.com reached the opposite conclusion. Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. A variety of federal agencies are empowered to enforce consumer protection laws. By July 2012, the FTC had brought a dozen enforcement cases targeting illegal robocalls, with violators paying $5.6 million in total fines. E. noncompetitive advertising. Failure to abide by the provisions of a litigated order can result in the advertiser facing a severe civil penalty, as much as $10,000 per day. Also, the time factor works in the advertiser's favor. D. multiple interpretations. 3. E. Competitor Trademark Act, Which of the following is used by many states as a basis for their advertising regulations? The judge also has the authority to dismiss the case. A. FTC Act The burden is on the government to disprove the advertiser's claim. In 2004 the U.S. Court of Appeals for the 10th Circuit upheld the National Do not Call Registry in Mainstream Marketing Services, Inc. v. Federal Trade Commission. -receive matching funds to expand public assistance programs This the First mendment plainly permits." A. D. advertising substantiation it is basically when articles or tv programs are sponsored by companies or products or service (like how American Idol judges always drank from coke bottle or snapple bottles). WebAd Regulations >> Advertising is controlled by internal self-regulation and by external state and federal regulatory agencies such as the Federal Trade Commission (FTC), the Federal "likely to mislead the consumer" Competition SUMMARY: -Exceptions include: -If the spokesperson was paid The endorser must be a bona fide user of the product at the time the endorsement was given and while the endorsement is aired. C. Advertising for contraceptives is completely banned on all networks since 1995. In 2008 the 7th U.S. Advertising claims that significantly involve health and safety are usually presumed to be material. They are: Using Chevron contended its products were just as good as Texaco's. Is it a violation of the First Amendment for a newspaper, magazine or broacdcasting station to refuse to carry an advertisement? The advantages of the *trade regulation rules (TRRs)* are numerous. E. comparative disclosure. C. broadcasters are required to provide time for opposing viewpoints on important issues. B. In 2012, the FTC filed 62 actions in federal court and obtained 94 orders for redress, disgorgement of profits and permanent injunctions against individuals and businesses. The signing of a consent order is an admission of guilt by the advertiser. -protections of proceeds against the insured's creditors D. Federal Trade Commission 2) The advertiser can agree to sign the agreement, but the commissioners reject it. C. National Association of Broadcasters Several airlines challenged the rule on First Amendment grounds in Spirit Airlines v. U.S. De'p of Transporatition. In 2008 legislation was signed under which numbers placed on the list remain on it permanently unless consumers specifically request a number's removal by calling 1-800-382-1222. Mass Media Law Chapter 15: Regulation of Advertising - Quizlet -agents. B. (2) An advertisement shall not state or imply that the payment or amount of nonguaranteed elements is guaranteed. *A First Amendment right not to be compelled by the government to speak has been recognized by the Supreme Court in some situations. Children If you advertise directly to children or market kid-related products to their parents, its important to comply with truth-in-advertising standards. B. premiums D. NARC can handle cases at lower cost as compared to a court. -jurisdiction is not particularly limited 4. B. FTC Improvements Act D. Federal Trade Commission Solve the present value formula (5) for nnn. E. remuneration. B. refer the case to an industry trade association. The statute, set forth at 15 U.S.C. Regulations The endorsement can be communicated by a verbal message, demonstration, picture or likeness, signature or other identifying personal characteristic or the seal of an organization. In either case, the losing side can appeal to the federal trade commissioners for a final ruling. Finally, in 2012, the FTC offered this sage but simple piece of advice to anyone receiving a robocall: "Hang uo the phone. Prohibits any false descriptions or representations of a brand (yours or someone else's), including words or other symbols tending falsely to describe or represent the same. -premium paid, an insurer has the right to recover payment made to the insured from the negligent party. Self-regulation by the advertising industry has increased in recent years, especially with the growth of comparative advertising. C. U. S. Postal Service C. the Better Business Bureau may sue Acme if it cannot substantiate its claims. For instance, in 2010 the FDA issued a warning letter to Dreyers Grand Ice Cream regarding the labeling off its Nestle Drumstick Classic Vanilla Fudge Product. Postal Service. What is the role of the leader and follower in the leadership process? C. National Advertising Review Council A well-educated physician might be better able to understand a complicated pharmaceutical ad than the average individual can. For instance, in 2012 NAD determined that Gillette's use of the term "MoistureRich" in the name of its "Gillette Venus ProSkin MoistureRich" women's razor conveyed the misleading message that the razor moisturizes the skin while one shaves. ______________________________________: All commercial e-mail messages must contain either a functioning return address or an Internet-based reply "opt-out" mechanism for at least 30 days after transmission of a message. WebExcept in unusual instances, we cannot require drug companies to submit ads for approval before they are used. A. Endorsements must reflect honest opinions, findings, beliefs or experiences of the endorser. How many ads are in your general vicinity each day? C. The division of Marketing Practices After a disability policy has been in force for _____ years, it is considered incontestable. B. provides for the review and evaluation of all child-directed advertising. Does this message injure the plaintiff? -An advertiser may use an endorsement of an expert or celebrity only as long as it it has good reason to believe that the endorser continues to subscribe to the views presented. E. Clayton Antitrust. WebFederal Regulators of Advertising -Federal Communications Commission -Food and Drug Administration -US Postal Service -Bureau of Alcohol, Tobacco and Firearms -Federal Trade Commission Federal Trade Commission Jurisdiction Responsible for regulating unfair Which of the following programs is more likely to be the most controversial of all the Federal Trade Commission's programs? A. both an encoding and a decoding tool for communications. Almost anyone who has watched television advertisements during the past decade or so is familiar with trademarked slogans such as "Beef. -estoppel A. Virginia Consumer Council Test Pr(\operatorname{Pr}(Pr( Audi after Ford )=0.6Pr(VW)=0.6 \quad \operatorname{Pr}(\mathrm{VW})=0.6Pr(VW after Ford )=0.4)=0.4)=0.4 Courts generally give less protection for commercial speech by lawyers than advertising publications A. a commercial is rejected at the storyboard stage. B. B. D. A consent order prohibits an advertiser from making a specified advertising claim for 30 days. The former phrase played a pivotal role in a case decided by the U.S. SUpreme Court in 2005. All broadcasting stations are considered to affect interstate commerce. Under the Wheeler-Lea Amendment, the Federal Trade Commission is empowered to stop an advertiser from making a specified claim within 30 days and refrain from doing so until a hearing is held. A. enhance the credibility of the publication. C. The Wheeler-Lea Amendment D. before the ad appears. A. Typically the advertising campaign is already over. E. Puffery is only illegal if it eliminates a competitive advantage. Consent Decrees Weban insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. Federal Trade Commission's advertising substantiation program requires advertisers to substantiate their claims: An entire industry can be treated similarly, and just one or two businesses are not picked out for complaint. WebWhich of the following industries are significantly influenced by laws regulating product purity and labeling? D. Television is the most carefully scrutinized of all forms of advertising. -Television networks had arbitrarily refused to air such commercials until urged to do so by the Federal Trade Commission, which suggested that such advertising would enhance the competitive nature of the marketplace. The Federal Trade Commission takes the position that: d. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. One commissioner is chosen by the president to be the chairman of the FTC. B. puffery has detrimental effect on consumers' purchase decisions. -What's happening now needs to stop immediately Advertising Regulations Flashcards | Quizlet WebStudy with Quizlet and memorize flashcards containing terms like Consumer protection laws regulate all of the following except: a. unfair trade practices. If the NAD and an advertiser fail to resolve an advertising controversy, either party can appeal the case to the NARB. The Federal Trade Commission requires advertising for any product that is sweetened with saccharin to contain a warning that saccharin may be hazardous to one's health. D. Electronic Retailing Self-Regulation Program * Network standards regarding acceptable advertising have remained constant over the past 30 to 40 years. Advertising D. limits on the amount of television advertising per hour targeted to children are eliminated. D. Bureau of Alcohol, Tobacco, and Firearms B. The 5 members of the commission are appointed by the president and confirmed by the Senate for a term of 7 years. C. an illegal deception. E. Trade Regulation Act. Bureau of Economics General FTC Advertising Rules. Another word for advertisement is _____________________. Advertising by professionals (attorneys and physicians) may be regulated in a more restrictive fashion. B. Acme's competitors may sue the company under the Lanham Act if it cannot substantiate its claims. -does not include political calls or spam artists B. C. Lanham C. Comparative advertising D. Robinson Patman Act Businesses that violate the do-not-call regulations are subject to civil penalties of up to $16,000 per individual violation. b. identity. Advertisers can still litigate the question, challenge the trade regulation rue, seek an appeal in court and so forth. -Litigated orders C) It involves underpricing products so that companies make larger sales. 57a, empowers the Commission to promulgate trade regulation rules with the force and effect of law that "define with specificity" acts or practices that the Commission finds, based on substantial evidence in the rulemaking record, are prevalent and are unfair or deceptive. -set sales quota Again, this law provides little relief for consumers. Spam frequently takes the form of sexually explicit advertisements that may be both unwarranted by, and offensive to, its recipients. *In addition to the federal CAN-SPAM Act, some states have their own statutes targeting such e-mails.*. tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. In the actual implementation and application of the 2 critical components of the FTC's rules against deceptive advertising, 3 key considerations emerge that are set forth: B. require an advertiser to run comparative advertisement. Affirmative disclosures States have what are called unfair and deceptive acts and practice statutes which give consumers the right to seek a judicial remedy in false advertising cases. -establish new insurance laws, establish continuing education requirements, which of the following is true concerning the proceeds of a life insurance policy? Specifically, the rule requires that the most prominent ticket price displayed on print ads and on Web sites be the total price, including taxes. Which of the following statements describes the NAD/NARB review process? In addition to the informal sanction of publicity, the FTC has a wide range of remedies to deal with advertising: C. children, advertisers, and agencies. Law of Agency C. selective retention Advertising Practices found to be unfair or deceptive 3. Advertising, as a form of expression subject to legal regulation and potential First Amendment protection, is the dominant cultural icon of our time. Implied uniqueness Postal Service In response to a request from the Institute for Public Representation for such a policy statement, the FTC said corrective advertising may be applied: "If a deceptive advertisement has played a substantial role in creating or reinforcing in the public's mind a false and material belief which lives on after the false advertising ceases, there is clear and continuing injury to competition, and to the consuming public as consumers continue to make purchasing decisions based on the false belief." B. creative boutiques, copywriters, and consumers. Privacy on the internet-in particular, companies and advertisers tracking and monitoring the Web sites consumers visit-is now a major concern of the FTC. To settle the issue, Ticketmaster agreed to pay refunds to consumers who bought tickets for 14 Bruce Springsteen concerts through its ticker resale Web site TicketsNow, and to be clear about the costs and risks of buying through its reseller sites. *There is an "established business relationship" (EBR) exception to the do-not-call provisions* that allows a company to call a consumer with whom it has such a relationship, even if the customer's number is on the registry. Part of the reason for this is that the Lanham Act's rules against false advertising, which are designed to remedy unfair competition, generally allow only economic competitors to sue. In 2007, the FTC requested public comment on its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," and proposed several minor revisions to its guides, including, among others, clarification that when determining whether statements in an ad constitute an endorsement, it does not matter whether the statements made by an endorser are identical to or different from those made by the sponsoring advertiser. Consent Agreement: C. a commercial is rejected for reasons such as sex and politics. c. secured -keep replacement records on file for at least 10 years Nevada allowing prostitution in some counties, Airline tickets having to prominently show total price, and Baltimore ordinance banning alcohol ads near children's facilities are all about ________________________. 3. If Parramore could lower its inventories and receivables by 10 percent each and increase its payables by 10 percent, all without affecting sales or cost of goods sold, what would be the new CCC, how much cash would be freed up, and how would that affect pretax profits? C. U.S. 2. Use the following information. -policy owners from misrepresentations and loss of benefits Bureau of Competition In the past, after the commission issued a cease and desist order, businesses frequently attempted to undertake practices that fell just outside the narrow boundaries of the order. reggie purchased a life insurance policy with a face amount of $500,000. -No, it is not political speech. *Aggravated Violations*. E. affirmative disclosure. Federal Trade Commission Act D. Trademark Revision Act of 1988 -Advertising, as a part of the marketing mix for all products, took on more importance in the past 50 years. *Accurate information in the text may not remedy a false headline. Direct Marketing Reform Act. 2. Trade Regulations Rules: C. Lanham Act C. is regulated by affiliates. A man owns an Audi, a Ford, and a VW. The basis of the program is simple: The commission asks advertisers to substantiate claims made in their advertisements. III. Offering for sale of lease . advertising regulations exist in order to? An EBR exists when a consumer has purchased, rented or leased the company's goods or services within 18 months preceding a telemarketing call. -agents commission rate Remedies for deceptive and unfair advertising, Require Substantiation A. consumers cannot distinguish between factual information and puffery. 3. Ch 20 Flashcards | Quizlet D. California Test of Affirmation National Advertising Review Board C. equity c. permitted consumers to sue the retailer from whom they had purchased the product. C. Bureau of Alcohol, Tobacco and Firearms spam senders are barred from transmitting e-mails for 10 business days to anyone who opted out originally. * Uder the terms of the CAN-SPAM Act, each separate e-mail in violation of the law is subject to penalties of up to $________________, and more than one person may be held responsible for violations. -whether a spokesperson is paid. What happens to an advertiser who signs a consent decree, then violates the provisions of the decree? Although that slogan at first may seem to benegit the entire beef and cattle industry, a number of cattle producers objected to it because, as the Supreme Court put it, "the advertising promotes beef as a generic commondity, which, they ccontended, impedes their efforts to promote the superiority of, inter alia, American Beef, grain-fed beef, or certified Angus or Herefore beef." -completely insured, joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. *Functioning Return Address and Opt-Out Mechanism* The FTC can seek an injunction to stop advertisements that it believed violated the law. E. Federal Communication Reform Act. Similarly, an advertiser cannot correct a misrepresentation in an advertisement with point-of-sale information. -never protection of proceeds, there is protection of proceeds against the insured's and the beneficiary's creditors, which of the following is MANDATORY coverage for all group health care service contracts? A. ad substantiation has been proven unnecessary as long as the advertising industry is self-regulating. A. Beginning in the 1990s the Food and Drug Administration (FDA) began an aggressive campaign against a variety of companies to force them to change their labeling and promotional practices. Is it a violation of the First Amendment for a newspaper, magazine or broadcasting station to refuse to carry an ad? There are 2 key divisions of the Better Business Bureau's Advertising Self-Regulatory Council (ASRC), which was known until April 2012 as the National Advertising Review Council, that provide both advice to advertisers and out-of-court methods for resolving disputes about advertisements. A. -Injunctions This is an example of: WebThe Louisiana Life and Health Insurance Guaranty Association. 1. The degree of substantiation that will be deemed reasonable varies with "the type of claim, the product, the consequences of a false claim,, the benefits of a truthful claim, the cost of developing substantiationand the amount of substantiation experts in the field believe is reasonable," the policy statement said. 2. D. is more stringently self-regulated than any other medium. First, the agency was given the power to issue trade regulation rules defining and outlawing unfair and deceptive acts or practices. Guides and the Child Online Privacy : SUMMARY: In particular, several telemarketing agencies filed lawsuits in 2003 against the FTC, alleging that it was beyond the scope of the FTC's jurisdiction to adopt the National Do Not Call Registry and claiming that the registry violated the First Amendment right of free speech of advertisers who use telemarketing. -incontestable period But Congress amended the act in 1989, and now the law also prohibits an advertiser from making false claims about a competitor's product as well. One of the FTC's most important responsibilities is to ensure that Americans are not victimized by unfair, misleading or deceptive advertising. B. A. an unfair claim. E. avoid questionable advocacy advertising. -very easy for FTC to obtain * -brokers and consultants BBB stands for: Better Business Bureaus provide control over advertising practices at a _____ level while the Council of Better Business Bureaus plays a major role in controlling advertising practices at a(n) _____ level.