mcgraw mass media law ch15
_____ is an exception to the do-not-call provision that allows a company to call a consumer with whom it has a good rapport.
An established business relationship
The agency that evaluates child-directed advertising and promotional material in all media to advance truthfulness, accuracy, and consistency with its "Self-Regulatory Guidelines for Children's Advertising" and relevant laws is called the:
Child Advertising Review Unit
_____, as opposed to competitors, have a much more difficult time in maintaining an action for false advertising.
Consumers
Which of the following statements refers to the fact that the Federal Trade Commission (FTC) practically regulates almost all advertising?
Every broadcasting station is considered to affect interstate commerce.
Today, the _____ is the only federal agency with jurisdiction to protect consumers and maintain competition in broad sectors of the economy
FTC
True or false: According to the Children's Online Privacy Protection Act (COPPA), online operators do not have to notify parents and get their permission before collecting, using, or disclosing personal information from children.
False
True or false: According to the Federal Trade Commission (FTC), the automated creation of multiple e-mail accounts used for commercial e-mail does not come under aggravated violations.
False
True or false: The Federal Trade Commission's (FTC's) prohibition against unfair or deceptive advertising and fraudulent marketing in any medium does not include the Internet.
False
True or false: Voluntary compliance is used for advertising campaigns that have started or are just about to start.
False
Match the following components of the CAN-SPAM Act (in the left column) to their appropriate actions (in the right column).
False/Misleading Messages = Prohibits information with deceptive subject lines Disclosure Requirements = Important components of an e-mail that should be available for the receiver's use
Identify the change that took place after the courts began easing the standard of claim for the plaintiffs.
It became possible for the plaintiffs to win actual damages and court costs from the defendant.
Identify an accurate statement about the "opt-out" mechanism as clarified by the Federal Trade Commission (FTC).
It requires a recipient to visit a single web page to opt out of further e-mail reception from a sender.
Identify the argument used by Justice Scalia in defense of the government's message in the "Beef. It's What's for Dinner" advertising campaign.
It was a message established by the Federal Government.
A national program finances an advertising campaign promoting the health benefits of a vegetarian diet. The government plans to recover its investment by charging a trivial amount as a service fee from vegetable vendors across the country. Mark, a vegetable vendor, feels that using the image of an organic farm could promote his business better than the campaign. Identify the argument that is most likely to make his case better.
Mark could argue on the violation of the First Amendment right of not being compelled to fund speech.
The organization that acts as a self-regulatory forum for the advertising industry, reviews national advertising for truthfulness and accuracy, and provides a form of alternative dispute resolution for companies that is cheaper than litigation is known as the:
National Advertising Division
Identify the key divisions of the Better Business Bureau's Advertising Self-Regulatory Council (ASRC)
National Advertising Division Child Advertising Review Unit
If an advertiser disagrees with a National Advertising Division or Child Advertising Review Unit decision, it can appeal to the _____.
National Advertising Review Board
The five members of the Federal Trade Commission are appointed by the _____.
President
Which of the following is a model law drafted in 1911 to control false or misleading advertising?
Printers' Ink statute
Identify the statement that features the Federal Trade Commission's (FTC) regulation of robocalls.
Robocalls are illegal even if the number dialed is not on the Do Not Call Registry.
A drastic remedy that the Federal Trade Commission seeks only in those cases that contain a clear violation of the law and in those cases in which there is no prospect that the advertising practice will end soon is called _____.
an injunction
A written agreement between the Federal Trade Commission (FTC) and an advertiser in which the advertiser agrees to refrain from making specific product claims in future advertising is called a(n)
consent order/consent agreement
A highly controversial scheme based on the premise that to merely stop an advertisement is in some instances insufficient is referred to as
corrective advertising
In the United States, many states have laws that give consumers the right to seek a judicial remedy in false advertising cases. These are called _____.
deceptive acts
In 2004, the U.S. Court of Appeals concluded that the Federal Trade Commission's (FTC) act of allowing the users of the National Do Not Call Registry to block the calls of telemarketers _____.
did not violate the First Amendment free speech rights of telemarketers
According to the Federal Trade Commission, a(n) _____ is any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser.
endorsement
The Federal Trade Commission urged television networks not to refuse airing commercials that tended to disparage the products made by a competitor in order to _____.
enhance the competitive nature of the marketplace
When the judgment issued by an administrative law judge on litigated order is not satisfactory to the losing party, they can appeal to the _____ for a final ruling.
federal trade commissioners
A pharmaceutical firm advertises a new drug, which provides immediate relief from dry cough for children. However, researchers have proved that prolonged usage of this drug will result in liver damage. In this scenario, the Federal Trade Commission is most likely to seek a(n) _____ against this firm.
injunction
According to the federal Lanham Act, any person who generates false or misleading representation of the facts of his or another person's goods in commercials is _____.
liable for civil damages
An order that is issued by the Federal Trade Commission against an advertiser to stop a particular advertising claim is called a
litigated order
The CAN-SPAM Act has prohibited e-mail messages that include _____.
materially false or misleading header information
The basic defense that an advertiser can use against any false advertising complaint is _____.
proving that the advertiser's claim is true
A company is said to have an established business relationship with a consumer when the consumer has _____.
purchased or leased the company's goods or services within 18 months preceding a telemarketing call
In the context of the Lanham Act cases, It was easier for the plaintiff to block a competitor's claim than to win damages, because it required the plaintiff to _____.
show specific monetary loss
A shampoo brand claims that the usage of its product leaves hair 100% dandruff free. The Federal Trade Commission asks this firm to provide experimental evidence to prove their claim. This process is called _____.
substantiation
A toothpaste brand claims that the usage of its paste prevents bad breath. The Federal Trade Commission does not presume that the claim made by the toothpaste brand is false, but it asks for scientific evidence to prove their claim. This process is called _____.
substantiation
In an advertisement, an endorser had claimed to have lost 30 pounds in just 15 days just by using weight loss pills. However, it was the endorser's physical activity and not the weight loss pills that lead to this weight loss. In this scenario, the Federal Trade Commission is likely to charge _____.
the endorser for making deceptive and false statements
For the Federal Trade Commission (FTC) to conclude that an advertisement is false, _____.
there must be representation or omission of material that is likely to mislead
An advantage of the new trade regulation rules (TRRs) issued by the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act in 1975 is that _____.
they speed up and simplify the process of enforcement
The Children's Online Privacy Protection Act (COPPA) that protects the privacy of children online is applicable to children under the age of _____.
thirteen
The maximum number of commissioners from the same political party that the Federal Trade Commission can have is _____.
three
The primary purpose for the adoption of the federal Lanham Act by Congress was _____.
to stop unfair competition in the market place
The new Magnuson-Moss Warranty-Federal Trade Commission Improvement Act has given a new power to the Federal Trade Commission (FTC), which enables the agency to issue _____.
trade regulation rules
Until the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act was established, the Federal Trade Commission was limited to dealing with _____.
unfair and deceptive practices that were "in commerce"
A cereal manufacturing company claims that consumption of its cereal provides consumers with all the nutrients they require for one day. The Federal Trade Commission (FTC) believes the claim to be deceptive and asks the firm not to make such claims in the future. The firm agrees with the FTC's order and terminates the current advertisement. This is known as _____.
voluntary compliance
Identify the situations in which a court can overturn a ruling made by the Federal Trade Commission (FTC). (Check all that apply.)
-When there is a violation of the Constitution -When there is no evidence to support the FTC's findings
Identify the specific items of content that commercial e-mail messages must disclose. (Check all that apply.)
-A clear and conspicuous identification of the message as an advertisement or solicitation -A notice of the "opt-out" mechanism -A valid physical postal address
Identify the criteria on the basis of which the Federal Trade Commission (FTC) considers advertising misleading. (Check all that apply.)
-Ads that omit relevant information -Ads implying something that is not true -Ads with unclear disclosures or disclaimers
Identify the types of commercial speech that do not receive any protection from the government.
-Advertising for unlawful goods and services -Advertising that is false, misleading, or deceptive
Identify the activities that are proscribed as "aggravated violations" according to the CAN-SPAM Act.
-Automated creation of multiple e-mail accounts used for commercial e-mailing purposes -Usage of unauthorized relays for commercial e-mail messages -Engagement in e-mail "harvesting"
In the context of the 2012 amendments to the Children's Online Privacy Protection Act (COPPA) rules, which are the persistent identifiers included by the Federal Trade Commission (FTC) under personal information that cannot be collected from children without notifying their parents?
-Customer numbers held in cookies that can be deployed by a Web site operator to recognize a user across different Web sites -Internet Protocol address
Identify the factors considered by the FTC to decide on a reasonable degree of substantiation. (Check all that apply.)
-The consequences of a false claim -The type of claim -The product
Identify the factors considered by the FTC to decide on a reasonable degree of substantiation.
-The type of claim -The consequences of a false claim -The product
In the context of promotional materials and activities, which of the following factors are considered by courts to determine if a speech is commercial?
-Whether the speech refers to a specific product -Whether the expression is an advertisement -Whether the speaker has an economic motivation for speaking
Under the Federal Trade Commission's (FTC) rules, telemarketers are prohibited from calling a person between the hours of _____ unless the person has given prior consent to calls during those specified hours.
9:00 p.m. and 8:00 a.m.
The act that was passed by Congress and is being actively enforced now by the FTC to protect the privacy of children online is called the _____.
COPPA Act
Identify the argument put forth by Justice Scalia that concluded the debate on the "Beef. It's What's for Dinner" campaign.
Citizens have no First Amendment right not to fund government speech.
Identify the key point that the Federal Trade Commission believes all advertising students should understand.
Endorsements must reflect the honest opinions, findings, or experiences of the endorser.
Identify the Federal Trade Commission rule on bait-and-switch advertising.
No ad containing an offer to sell a product should be published if the offer is not a bona fide effort to sell that product.
A national program finances an advertising campaign to promote the health benefits of chocolates. The government plans on recovering its investment by charging a trivial amount as a service fee from chocolate manufacturers across the country. However, the chocolate manufacturers are unwilling to pay or take part in the campaign. They use the freedom of speech clause of the First Amendment to argue that they are being compelled to fund speech. Identify the counterargument that will most likely strengthen the government's case.
The First Amendment does not refer to any right against funding government speech.
Silk, a shampoo brand, stated in its advertisement that its shampoos are a combination of both shampoo and conditioner. Feathers, a competitor, filed a lawsuit against Silk for its misleading advertisement. Identify the argument most likely to result in favor of Feathers.
The advertisement of Silk posted an unfair threat against the sales of Feathers' conditioners.
Tracks, a popular shoe brand, sues its competitor Airfoot for its commercials in federal court. Identify the valid reason that will lead to a judgment in favor of Tracks.
The commercials were false and deceptive.
Identify the principle enforced by the Federal Trade Commission in its new Guides Concerning the Use of Endorsements and Testimonials in Advertising.
The endorser may be subject to liability for his or her statements.
True or false: As part of a self-regulation procedure, the mass media can reject an advertisement because of economic interests.
True
True or false: Spam represents an economically efficient and inexpensive way of marketing one's product or service.
True
Identify the criterion used by the Lanham Act in the test of false advertising.
Whether the message has injured the plaintiff
In 2004, the Federal Trade Commission (FTC) adopted a rule that required the spammers who send sexually oriented material through e-mails to include _____.
a warning stating "SEXUALLY-EXPLICT" in the subject line
Congress adopted the CAN-SPAM Act in order to _____.
address the negative aspects of spam
In the context of corrective advertising, in order to erase the residue of misleading information from the minds of the public, the Federal Trade Commission (FTC) forces the advertiser to _____.
admit that it has not been honest in the past or has been misleading
A food manufacturing firm, in its advertisement claims that it is safe to consume its products without refrigeration. However, during the advertisement, a disclaimer mentions that it cannot be left unrefrigerated for more than 24 hours. The Federal Trade Commission (FTC) finds that the advertisement to be misleading. In this scenario, the FTC is most likely to use _____.
an injunction
The new issue made by the FTC claims that Web sites _____.
are liable for the posts or statements they carry if they act as publishers or speakers
An angle that advertisers can pursue to defend themselves against any false advertising complaint is to _____.
attack a different aspect of the government's effort to disprove the advertiser's claims
According to the Federal Trade Commission, an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell is called _____ _____.
bait-and-switch advertising
The National Do Not Call Registry, which was initiated by the Federal Trade Commission (FTC) in 2003, enabled people to _____.
block the calls of telemarketers
The Federal Trade Commission is most likely to use injunction only in those instances in which the advertisement _____.
can cause harm
According to the courts of the U.S., the doctrine that articulates how much First Amendment protection advertising receives, and the criteria the government must satisfy to permissibly regulate it is called the
commercial speech doctrine
If the Federal Trade Commission considers an advertiser to have knowingly violated the provisions of a litigated order, then according to the new law, the agency _____.
is allowed to seek civil penalties against the advertiser
Under the new rules of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act in 1975, if the Federal Trade Commission was given the power to _____.
issue trade regulation rules defining and outlawing unfair and deceptive acts or practices
A health drink brand uses a celebrity for endorsing its product. In the advertisement, the celebrity claims that the consumption of that particular health drink keeps her active and young. However, the health drink brand does not have any scientific evidence to prove the claims that made in the advertisement. In this case, the Federal Trade Commission is likely to charge this health drink brand because _____.
it has made unsubstantiated statements through endorsements
The Federal Trade Commission (FTC) places considerable pressure on firms to agree to a consent order, and firms agree because refusing to sign the agreement will result in:
litigation
According to new laws, advertising agencies _____.
may be held liable if they are involved in the preparation of a deceptive advertisement
According to the Federal Trade Commission's (FTC) rules against deceptive advertising, all claims made in an advertisement _____.
must be substantiated
The Lanham Act's rules against false advertising, which are designed to remedy unfair competition, generally allow _____.
only economic competitors to sue
The Federal Trade Commission (FTC) was created by Congress in 1914 to _____.
police unfair methods of business competition
According to the Federal Trade Commission (FTC), the "valid physical postal address" disclosed by the sender of commercial e-mail messages can either be a registered post office box or a _____.
private mailbox established under U.S. Postal Service regulations
The primary purpose for introducing the National Do Not Call Registry by the Federal Trade Commission (FTC) was to _____.
reduce both intrusions upon consumer privacy and the risk of fraudulent solicitations
In the context of self-regulation of advertising, the mass media is allowed to:
reject any commercial with or without a reason
Advertising ___ involves the Federal Trade Commission (FTC) asking advertisers to substantiate claims made in their advertisements.
substantiation
The third section of the laws adopted by the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act, gave the Federal Trade Commission the right to _____.
sue in federal court on behalf of victimized consumers
The Federal Trade Commission (FTC) states that advertisements should be evaluated from the perspective of the _____.
targeted customer
The National Do Not Call Registry introduced by the Federal Trade Commission (FTC) is limited only to _____.
telemarketing calls made by or on behalf of sellers of goods
A court can overturn a Federal Trade Commission (FTC) ruling when _____.
there is convincing evidence that the agency made an error in the proceedings
According to the Federal Trade Commission, advertisers are subject to liability if _____.
they fail to disclose material connections between themselves and their endorsers
A genuine agreement of the Federal Trade Commission (FTC) with an advertiser who agrees not to repeat a particular claim, which the FTC found to be misleading, in future advertising is termed as _____.
voluntary compliance
In an advertisement, a car manufacturer claims that a new model car has been manufactured to promote passenger safety. It states that the passengers are more likely to be safe even after a car crash. However, the Federal Trade Commission (FTC) believes it to be misleading. Hence, it asks the manufacturer to stop making such claims in the future and to stop this advertisement. The car firm agrees to stop its commercials that make such claims. This is an example of _____.
voluntary compliance
