Exam 14: Regulations and Ethical Concerns

If consent agreement cannot be reached after an investigation by the Federal Trade Commission (FTC),the case would next go to the full commission.

In terms of substantiation of ad claims,the Federal Trade Commission (FTC)and the courts assume that consumers can and will read fine print or qualifying language that is placed in an advertisement.

If a case is appealed from the National Advertising Review Board (NARB),it would go to the:

In the past attorneys,physicians,and dentists did not advertise for fear of negative reactions by patients and clients.

Identify and describe the three classic models of social responsibility.

Although the National Advertising Division of the Council of Better Business Bureaus has no legal authority to enforce its decisions,the National Advertising Review Board of the CBBB is supported by the FTC and does have legal authority.

The Wheeler-Lea Amendment makes advertising puffery illegal.

In terms of social responsibility perspectives,the ethical or enlightened management perspective states that:

In terms of substantiation,if an advertiser uses expert endorsements,then statements in the advertisement must be based on:

In terms of ethical frameworks for reasoning,the justice approach is a method of decision making based on treating all people fairly and consistently.

Identify the typical steps in an FTC investigation sequence from the initial complaint to a decision that is appealed to the Supreme Court.

Brand infringement occurs when a company creates a brand name that closely resembles a popular or successful brand.

When the FTC Act was passed in 1914,the FTC's responsibility was to enforce antitrust laws and to protect businesses from one another.

To influence purchase decisions,purchasing agents and other members of a buying organization are often the recipients of gifts,meals,entertainment,and free trips.

In terms of substantiation of ad claims,the Federal Trade Commission (FTC)and the courts will consider the totality of evidence.If the company has one study that supports the ad claim,but a number of other studies contradict the claim,the FTC and courts will state the ad claim has not been properly substantiated.

Procedural justice concentrates on the fairness of rewards,punishments,and outcomes.

The advantages of using industry-based agencies to resolve advertising complaints rather than the governmental agencies,such as the FTC,are

Marketers argue restrictions on advertising of alcohol and tobacco products is not fair because:

The Wheeler-Lea Amendment (1938)of the Federal Trade Commission Act prohibits false and misleading advertisements.

In terms of a foundation and framework for ethical guidelines,hedonism: