CH 20 Flashcards
The Advertising Self-Regulatory Council’s mission is to
sustain high standards of truth and accuracy in national advertising.
The ________ is the division of the Federal Trade Commission (FTC) that analyzes the impact of government regulation on competition and consumers.
Bureau of Economics
The ________ empowers the Federal Trade Commission (FTC) to issue a cease-and-desist order.
Wheeler-Lea Amendment
The Network Advertising Initiative (NAI) is a(n)
self-regulatory code developed by companies that collect Internet usage data.
Advertising practices considered unfair include
claims that might exploit children and older adults.
The NAD, CARU, ERSP, and the Online Interest-Based Advertising Accountability Program are staffed primarily by attorneys.
True
Which of the following statements is true of the use of puffery?
The use of puffery in ads is common.
The advertising industry prefers government intervention to self-regulation for controlling advertising abuses.
False
Which of the following statements is true of the Children’s Advertising Review Unit (CARU)?
CARU recognizes that the special nature and needs of a youthful audience require particular care and diligence on the part of advertisers.
The U.S. Postal Service has control over advertising involving the use of the mail and ads that involve lotteries, obscenity, or fraud.
True
Mars Inc. includes the disclaimer “Warning! This product has not been pasteurized and must be used with caution” on all its juice products. This inclusion is an example of
affirmative disclosures.
A promotion is considered a lottery if
a consideration, such as making a purchase, is present.
Regulatory concerns do not play a major role in the advertising decision-making process.
False
No commercial can run without approval from a network’s ________ department.
Standards and Practices
Which of the following is a federal agency that controls advertising?
Food and Drug Administration
