Exam 14: Regulations and Ethical Concerns

An appeal of a decision by the National Advertising Division (NAD) goes to the:

In addition to handling complaints about advertising to children, the Advertising Self-Regulatory Council now prescreens ads directed to children.

The key difference, in terms of the Federal Trade Commission (FTC) and the courts, between puffery and a claim is that puffery is not considered to be a factual statement while a claim is considered to be a factual statement that can be proven true or false.

Explain the difference between deception and puffery.

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

When a company designs a promotion or event near a major sporting event to capitalize on the attendees to the event without being an official sponsor, it is:

The Federal Communications Commission (FCC) is responsible for monitoring television advertising directed to children, in terms of the number of minutes per hour that are directed to children.

The Federal Trade Commission (FTC) can use the court system to stop unfair and deceptive advertising and communication practices without going through the normal steps of starting with a consent agreement.

If the Advertising Self-Regulatory Council (ASRC) rules against an advertiser, it will issue an order that will be very similar to a:

The first step a firm can take to end a Federal Trade Commission (FTC) investigation of a complaint is the signing of a consent order, if a violation has occurred.

When a brand is associated with a major sporting event, such as the Olympics, without any intentional or indirect effort on the brand's part, it is:

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

If a firm suggests or hints it is associated with a major sporting event, such as the Olympics, when it is not, it is:

In terms of substantiation of advertising claims, the Federal Trade Commission (FTC) and the courts 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 find the claim has not been properly substantiated.

In terms of ethical frameworks for reasoning, individualism is:

Pepsi creates an advertisement suggesting it sponsors the U.S. Olympic basketball team by showing a basketball game in a commercial. This is a form of:

Public complaints about the amount of violence on television would be sent to the:

When a firm intentionally designs advertisements or marketing campaigns to capitalize on a major sporting event, such as the Olympics, it is:

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

Identify the primary industry agencies that assist in regulating the marketing and advertising industry, and explain the primary function of each.