In some cases it is not easy to distinguish political speech from commercial speech, as courts recently have observed. After a disability policy has been in force for _____ years, it is considered incontestable. B. injunctive power. Webadvertising regulations exist in order to? *False/Misleading Messages* 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. The advertiser can agree to sign the agreement, and the commissioners vote to accept this agreement. It may also regulate truthful advertising for lawful activities and goods if it can prove (1) there is a substantial state interest to justify the regulation, (2) that such regulation directly advances this interest, and (3)that there is a reasonable fit between the interest asserted and the governmental regulation. 3. Such claims are referred to as _________________ and include representations that a store sells "the most fashionable shoes in town" or a cola drink is "the most refreshing drink around." A. C. consumers recognize puffery and don't believe it. Telephone Consumer Protection Act of 1991. Advertising *substantiation* has been an important part of the FTC regulatory scheme since 1972. C. American Association of Advertising Agencies Cease-and-desist orders: An advertiser who says that his product is the "best," "greatest," etc. A. He drives every day and never drives the same car two days in a row. continued coverage under COBRA would be provided to all of the following EXCEPT All claims made in advertisements must be substantiated such that, before disseminating an ad, advertisers must have a reasonable basis for any and all express and/or implied product claims, with claims relating to health and safety coming under even closer FTC scrutiny that typically requires proof by competent and reliable scientific evidence. B. Web(1) An advertisement shall not utilize or describe nonguaranteed elements in a manner that is misleading or has the capacity or tendency to mislead. The FTC does not attempt to scrutinize every advertisement that is published or broadcast. -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. WebStudy with Quizlet and memorize flashcards containing terms like Any administrative action taken against a producer MUST be reported to the director within ___ days after the final disposition., How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?, According to the Affordable Care Act, new health Insurance 0 & 5 D. before the ad appears. President Theodor Roosevelt broke up many Trusts by making anti-trust laws. Express claims as to the attributes of a product are always considered material. But if the commissioners support an administrative law judge's ruling against an advertiser, the order becomes law after it is finalized by an appellate court. Advertisers claimed the Registry violated their First Amendment rights to free speech. WebAdvertising regulations exist in order to Demonstrate full and truthful disclosures to the public The purpose of Advertising regulations is to assure full and truthful disclosures to As a discipline, marketing is not affected by things that occur outside of the firm's control. Voluntary agreements by advertisers to terminate a deceptive advertisement _________________________: Spam senders are barred from transmitting commercial e-mail messages to any recipient after 10 business days following the exercise by the recipient of his or her right to opt out of future commercial e-mail messages. In concluding that the registry did not violate the First Amendment free speech rights of telemarketers, the appellate court applied the commercial speech doctrine and Central Hudson test. No more than 3 of the commissioners can be from the same political party. A number of self-regulatory mechanisms have been established by the business community in an effort to control advertising practices and among them the largest and best known is the ____. It also obtained 19 civil penalties in 2012, including $22.5 million from Google, Inc. 3. A. selective exposure (a) What is a binary predictor? -receive matching funds to expand public assistance programs 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. C. a commercial is rejected for reasons such as sex and politics. Sometimes filing a lawsuit is the only effective way for the FTC to pressure some companies. -Trade Regulation Rules. In the past, the agency had to pursue deceptive advertisements one at a time. If an advertiser refuses to comply with rulings made by the National Advertising Review Board (NARB), the NARB is most likely to: D. impose a fine. But practically, it can regulate almost all advertising. Postal Service have laws that govern the use of a(n) ____, whereby a company proposes to send merchandise to consumers and expects payment unless a rejection or cancellation notice is sent by the consumer. Bad publicity can cost a company millions of dollars. 4. D. NARC can handle cases at lower cost as compared to a court. A. commercial speech. The advertising industry's most effective self-regulatory mechanism is the: Injunctions: The merchant then claims the product is not available at the price but another model can be purchased at a high price. C. U. S. Postal Service WebI. A. the Federal Trade Commission (FTC) may sue Acme for comparative advertising. D. false substitution C. puffery. When advertisements or sales practices are targeted to a specific audience, such as those aimed at children or people who are elderly or terminally ill, they will be viewed from the perspective of a reasonable member of that group. -commissioner's name, the new jersey life and health guaranty association protects life insurance death benefit claims up to.. Will you buy the book? -home address -defer all costs to the federal government for public assistance programs, receive matching funds to expand public assistance programs, ownership of a life insurance policy may be temporarily transferred with a(n), replacement regulation is designed to protect the interests of Again, this law provides little relief for consumers. These guides are policy statements that alert businesses to what the agency believes are permissible advertising claims or practices. E. comparative disclosure. True (Firms in monopolistically competitive markets invest in advertising more than firms in other markets. Falsely implying that a benefit is needed. E. Sherman Antitrust Act. A. which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? Ad substantiation A. C. are issued by the Federal Trade Commission. Under the commercial speech B. Since that time the commission has developed into one of the nation's largest independent regulatory agencies. -purchase health insurance from the federal government Consent Agreement: When a complaint is received, FTC staff attorneys examine it to see if it has merit. C. Godiva claims that it makes the finest chocolates in the world. The FTC usually requires an advertiser to substantiate claims that go beyond those permitted by the guides or may even bring a false advertising action against the business. -Comparative advertising, in which an advertiser not only promotes his or her own goods but tends to disparage the product made by a competitor, became more common. Sometimes the misleading statements are minor errors, but other timed they represent a major attempt at deception. 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. Competition It enforces the laws that prohibit business practices that are anticompetitive, deceptive or unfair to consumers, and it seeks to do so without impeding legitimate business activity. There must be a representation, omission or practice that is likely to mislead the consumer. C. Wheeler-Lea Amendment A. cease-and-desist These acts are often called "Little FTC Acts," and the guidelines developed by the FTC in applying federal advertising law are used by the state courts in administering these state regulations. The commission evaluates the entire advertisement when examining it for misrepresentation. -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? People who work in advertising must be aware of such rules as well as all other regulations (libel, invasion of privacy, obscenity) that restrict the content and flow of printed and broadcast material. The _____________________________ is why commercial speech gets First Amendment protection (in chapter 2), ____________________ in _______ - made it a misdemeanor for a publication for advertising for an abortion (a weekly magazine gave a doctor's name to schedule an abortion This is an example of: Although many products and services are sold locally only, nearly every conceivable advertising medium is somehow affected by or affects interstate commerce. D. Wheeler-Lea D. advertising substantiation Chevron contended its products were just as good as Texaco's. A. within one month of the appearance of the ad. -protections of proceeds against the insured's creditors Laws banning false advertising exist at both the state and local levels, but tend to be applied half-heartedly. Ocean Spray Cranberry Juice. Although $1 taken alone may seem small for each sale, the program has collevted more than $1 billion since 1988. *10-Day Prohibition Period* State regulation of advertising predates federal regulation buy several years. Does this message injure the plaintiff? The advertiser admits no wrongdoing by signing such an order, so there is no liability involved. You Are Here: ross dress for less throw blankets apprentissage des lettres de l'alphabet advertising regulations exist in order to quizlet. Federal Trade Commission A. American advertising is regulated by laws adopted by all levels of government. Advertising Practices found to be unfair or deceptive 2. \end{array}\right]+\left[\begin{array}{ll} 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. -FTC regulates spam A. rebates and refunds One commissioner is chosen by the president to be the chairman of the FTC. B. -beneficiaries If the advertiser has had a good record in the past and if the offense is not too great, the company can voluntarily agree to terminate the advertisement and never use the claim again.
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