Exam 14: Regulations and Ethical Concerns

If Wendy's makes an advertising claim that the company offers great-tasting hamburgers, the practice is:

The Federal Trade Commission, National Advertising Division, and the courts would consider the word "better" used in an advertisement to be:

The Council of Better Business Bureaus is an industry regulatory resource that is available to consumers, but not businesses. Businesses must use the FTC to file complaints.

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

Identify the primary concerns and criticisms of advertising.

What criteria must be met to deem an advertisement deceptive or misleading?

The first step a firm can take to end a FTC investigation of a complaint is the signing of a consent order.

The agency that would be concerned with the salt content in foods would be the:

In the United States and many Western nations, the form of law that is used is called civil law.

Words such as "best," "greatest," and "finest" used in advertising are examples of:

The practice of restricting advertising of alcohol and tobacco products raises the questions of free speech and the freedom for a business to advertise its products, regardless of what those products are.

When a company increases its advertising and marketing during a major event, such as the Olympics, to capitalize on individuals watching the event, yet is not an official sponsor, it is ________ marketing.

If an advertiser uses expert endorsements, statements made by the expert in the advertisement must be based on:

If a firm suggests or hints that it is associated with a major sporting event when it is not, it is:

If a company creates an impression that it is a sponsor of an event when it is not, it is called allusion marketing.

Brand infringement issues become more complex when a brand is so well established that it may be considered a generic term, such as Ford or Toyota.

With direct ambush marketing, a brand suggests or hints it is associated with a major sporting event when it is not an official sponsor.

Occasionally the FTC bypasses its typical process and uses the court system to stop an unfair marketing practice. Of the following, which would be the most likely to trigger this type of action?

The funeral industry was sanctioned by the FTC in 1984 and 1994 for practices common in the industry that the FTC believed were not fair to consumers. To correct these misleading practices, the FTC issued a:

Many social commentators suggest that advertising and other forms of marketing perpetuate negative stereotypes of males, females, and minorities.