Exam 8: Commercial Speech

A presumption against the constitutionality of prior restraints is fundamental to First Amendment law. Yet prior restraints are acceptable to the courts where:

Commercial speech is deceptive if an average consumer, acting reasonably, would be deceived.

After a 2012 settlement with the FTC over allegations that Facebook was unfair and deceptive in its privacy practices, Facebook continuously violated the order, resulting in a $5 billion civil penalty in 2019, the largest ever issued by the FTC.

Commercial speech is deceptive if a stupid, ignorant, and unreasonable person would be deceived.

Under FTC regulations, advertisers can track and record a consumer's web browsing and purchases only if the consumer "opts in" to the tracking.

The Family Smoking Prevention and Tobacco Control Act authorized the Food and Drug Administration-not the Federal Trade Commission-to control the manufacturing, marketing, advertising, and labeling of tobacco products because the FDA has the scientific expertise to regulate addictive drugs, such as nicotine, and other cancer-causing ingredients.

In Lowe v. SEC, the U.S. Supreme Court ruled that financial newsletters that do not offer individualized advice to investors are exempt from SEC registration requirements.

At the heart of FTC advertising regulations is its power to require that advertisers substantiate the accuracy of advertising claims.

Federal law prohibits the broadcast of advertising for hard liquor.

Although advertising can be limited during children's television programs, the amount of commercial time in other broadcast programming is not restricted.

Puffery must be substantiated with factual proof.

A California court ruled that Nike engaged in false advertising-not protected political speech-when it defended its labor practices in Southeast Asia.

A Volvo television advertisement emphasizing the strength and safety of Volvos shows a Volvo and several other brands of cars being run over by a giant truck. The audience is not informed that the ad production crew reinforced the roof of the Volvo but cut the roof supports of the other cars so that they would collapse easily. The primary message of the ad is that Volvos are safer than other cars in the advertisements, a conclusion that is true, whether or not the roof supports are cut. This is an example of a non-deceptive mock-up.

In response to spikes in e-cigarette use among high school-age children, the FTC ordered vaping companies, such as Juul, to turn over information about how they market their e-cigarettes.

Public relations counsel who have access to nonpublic material information that is intended only for corporate use are subject to insider trading rules, just like corporate executives.

What is the definition of the following term: -Insider trading.

Advertising substantiation rules require that:

The FTC has considered power over advertising a power that the government does not enjoy in regulating political speech. Not only can the FTC halt deceptive advertising and punish the advertiser, the FTC may also order alterations in advertisements to make them truthful and non-misleading.

Even though the government may have a "legitimate" interest in regulating advertising for tobacco, alcohol and many other products, it is more difficult for the government to demonstrate that the government regulation will advance the government's interest.

What is the definition of the following term: -Fight Online Sex Trafficking Act (FOSTA).