Exam 8: Commercial Speech
The FTC has the authority to order businesses to remove provisions in their contracts that bar customers from posting negative online reviews and that require businesses to notify current customers that the provisions are not enforceable.
True
What is the definition of the following term:
-Puffery.
Advertisers may exaggerate or "puff' their products on such subjective matters as taste, feel, appearance, and smell. The FTC assumes that ordinary consumers do not take puffery seriously and are not deceived by such subjective claims. Thus, BMW may refer to its cars as "The Ultimate Driving Machine," Bayer may claim that its pain reliever "works wonders," and Nestle may describe its chocolate as "the very best." Puffery becomes deception when exaggerated claims falsely imply material assertions of superiority. If BMW claims that its 5series cars are faster over a quarter-mile than comparable Lexus and Acura models, it needs substantiation of this factual claim. BMW, however, does not need substantiation for its slogan "The Ultimate Driving Machine."
A ban on billboards advertising smokeless tobacco within 1,000 feet of a school is unconstitutionally overbroad.
True
The 1976 case in which the U.S. Supreme Court ruled that pharmacy advertisements conveyed constitutionally protected information of value to consumers:
Endorsement disclosures made by social media influencers on live streams should be repeated regularly so they are not missed by people who do not watch the whole thing.
The FTC can halt-through the use of consent decrees-deceptive ads that violate native advertising and sponsorship guidelines.
In FTC v. Colgate-Palmolive Co., the Rapid Shave case, the U.S. Supreme Court ruled that the Plexiglas mock-up was:
A broadcaster, located in a state where lotteries are illegal, may carry advertisements for an adjoining state's lawful lotteries.
Advocates for consensual adult sex workers argue that the Fight Online Sex Trafficking Act (FOSTA):
A material statement in advertising, like a material statement in corporate securities transactions, is one that is likely to affect a purchasing decision.
In the Virginia Pharmacy case, the U.S. Supreme Court ruled that commercial speech is protected under the First Amendment because of the consumer's interest in receiving commercial information.
Facebook's $5 billion settlement with the FTC for unfair and deceptive privacy practices:
The government can ban advertisements for certain "personal" products, such as contraceptives, to prevent audience members from being offended.
The town of Intolerance decides to ban the outdoor advertising of alcohol in media such as billboards. Establishments selling or serving alcohol may have on-site outdoor signs identifying the business, and may include alcohol-related terms in their name, such as "The Liquor Store," but may not have outdoor displays identifying the brands of alcohol or the price of alcohol sold. The city claims that these measures will reduce alcohol consumption and thereby reduce alcohol-related problems, such as drunk driving. A brewery and a bar challenge this law as a violation of the First Amendment. The brewery wants to advertise the "fresh, natural taste" of its beer. The bar wants to advertise the brands and prices of beer it sells. Is this ordinance constitutional? In your answer, apply the Central Hudson test, and relevant precedents, to this ordinance.
The 1986 case in which the U.S. Supreme Court upheld a ban on non-misleading casino advertising:
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