Quiz 15 - Chapter 18

Advisory opinions are formal opinions issued by the Federal Trade Commission on issues such as whether a proposed practice is unfair or deceptive.

True

The Federal Trade Commission is the primary federal agency that protects consumers.

True

The following example is a result of a trade regulation rule:

A) "Do Not Call" list

The Video Privacy Protection Act prevents the disclosure of personally identifiable information concerning video rentals and includes a right of civil action with a minimum liquidated damages provision of ________.

A) $2,500

Which of the following statements is true of the Truth-in-Lending Simplification Act?

A) It restricts statutory penalties to failures to disclose credit terms that are of material importance in credit comparisons.

In the context of false advertising laws, state law

A) may allow for private lawsuits in addition to government enforcement, which is an option not available under the Federal Trade Commission Act.

Which of the following statements is true of the Children's Online Privacy Protection Act?

B) It applies to any company knowingly collecting information online from children 13 and under, even is that is not the primary purpose of the website.

Penultimate manufactures luxury pens. One of its new products, the Green Dream Scriber, is advertised to be 100% biodegradable unlike its competitors' pens due to a unique case and special ink compound that makes the pen biodegradable. After receiving complaints of fraud, the Federal Trade Commission (FTC) determines that the pen is made from materials similar to that found in most luxury pens and is not biodegradable. The FTC orders Penultimate to run an ad admitting that its advertisements were misleading and remove the untrue information from its advertisements. In this scenario, which of the following remedies is used by the FTC?

C) corrective advertising

The ________ provides the right to dispute information on credit reports and allows consumers to obtain a free credit report each year.

D) Fair and Accurate Credit Transactions Act

One limitation of the Electronic Communications Privacy Act is that ________

D) it allows for the interception of business communications on an employer's equipment.

The commissioners of the Federal Trade Commission are appointed by Congress and the budget is approved annually by the president.

False

The main purpose of the Federal Trade Commission is to find violators and punish them.

False