Chapter 6 Legal Frameworks Jamie A. Cabate, CHRA in Advertising

Question 1

_____ __ ___ also known as
This ______ ___ __ ___ _______ is is the policy of the
State to protect the interests of
the consumer, promote his
general welfare and to establish
standards of conduct for business
and industry.

Answer 1

Republic Act 7394

Consumer Act of the
Philippines

Question 2

the
agency responsible for consumer
protection, is the principal
regulatory authority tasked with
enforcing the laws and
regulations governing advertising
practices in the Philippines.

Answer 2

Department of
Trade and Industry (DTI)

Question 3

is the advertising
industry body in charge of
reviewing advertising content
of materials across all media.

Answer 3

The Ad Standards Council
(ASC)

Question 4

ADVERTISING CODE OF ETHICS

Answer 4

Advertisements shall follow and uphold Philippine laws, rules and
regulations.

2.Advertisements shall be honest, truthful, and accurate.
3.Advertisements shall not be deceptive or misleading.
Advertisements shall not tend to mislead or confuse the consumer as to
the content, origin, utility, or function of any product or service.
4.
Advertisements shall not use news format, terms, phrases, graphics, or
expressions reserved for important news and public service
announcements, e.g., newsflash, breaking news, etc.

Question 5

ADVERTISING CODE OF ETHICS

Answer 5

Advertisements shall follow and uphold Philippine laws, rules and
regulations.

2.Advertisements shall be honest, truthful, and accurate.
3.Advertisements shall not be deceptive or misleading.
Advertisements shall not tend to mislead or confuse the consumer as to
the content, origin, utility, or function of any product or service.
4.
Advertisements shall not use news format, terms, phrases, graphics, or
expressions reserved for important news and public service
announcements, e.g., newsflash, breaking news, etc.

Question 6

refers to techniques intended for broad consumer
participation, which contain promises of gain such as prizes, in cash or in kind,
as reward for the purchase of a product, security, service or winning in a contest,
game, tournament, and other similar competitions which involve determination
of one or more winners, and which utilize mass media or other widespread
media of information.

Answer 6

Sales Promotion

Question 7

refers to food, drugs, cosmetics, devices, biologicals, vaccines,
in-vitro diagnostic reagents and household/urban hazardous substances, and/or a
combination/derivative thereof.

Answer 7

Health Products

Question 8

Advertising Claims

Answer 8

1.)eceptive or
Misleading Claims
2.)Substantiation of
Advertising Claims
3.)Product
Demonstrations
4.)Regulation of
Advertising Claims
5.)Endorsements and
Testimonials
6.)Disclosures
7.)Representation &
Stereotypes in
Advertising
8.)Environmental
Claims
9.) Dark Patterns
10)Children
11.)Other Regulated
Claims
12.)Other Regulated
Claims

Question 9

Comparative advertising and ambush marketing

Answer 9

1.)Ambush Marketing
2.)Specific Rules &
Restrictions
3.)Competitor Copyright
& Trademark
4.)Challenging Comparative
Claims Made by Competitors

Question 10

An advertisement is
considered to be false,
deceptive, or
misleading if it is not in
conformity with the
provisions of the
Consumer Act or if it is
misleading in a material
respect.

Answer 10

Deceptive or
Misleading Claims

Question 11

All advertisements
making special claims
are subject to
regulation under the
Consumer Act.
Advertising claims are
also regulated under
the ASC Code of Ethics

Answer 11

Regulation of
Advertising Claims

Question 12

Advertisements making
scientific or statistical
claims must indicate in
the same advertisement
the source of the same
and, as much as
possible, use local
sources and those of
independent and
competent stature.

Answer 12

Substantiation of
Advertising Claims

Question 13

Demonstrations of
product performance in
an advertisement,
including, but not
limited to, laboratory or
scientific tests, to be
factual and accurate and
to be directly relevant as
proof of the product
benefit to which it
purports to relate.

Answer 13

Product
Demonstration

Question 14

Professional/s
organizations giving
testimonials in any
advertisement to
promote a product
must be properly
licensed, registered, or
accredited, if law,
ordinance, or
government rules or
regulations

Answer 14

Endorsements and
Testimonials

Question 15

Consumer act penalizes
an advertiser’s failure to
reveal material facts in
light of representations
made or consequences
which may result in the
use or application of the
advertised products.

Answer 15

Disclosures

Question 16

Advertisements must not
directly or indirectly
ridicule, criticize, or
attack any natural or
juridical person, groups of
persons, or any sector of
society, especially on the
basis of gender, social or
economic class, religion,
ethnicity, race, or
nationality.

Answer 16

Representation &
Stereotypes in
Advertising

Question 17

Advertising and/or
marketing communication
materials should not contain
any statement or visual
treatment likely to mislead
consumers in any way about
the environmental aspects
or advantages of products,
or about actions being taken
by the advertiser or
marketer in favor of the
environment.

Answer 17

Environmental
Claims

Question 18

refers to a
user interface designed
or manipulated with the
substantial effect of
subverting or impairing
user autonomy,
decision-making, or
choice.

Answer 18

Dark Patterns

Question 19

Advertisements
directed at children
should not foster
violence as a desirable
way or a means of
resolving conflicts and
problems or depict
sexual subjects and/or
violent actions
inappropriate for
children.

Answer 19

Children

Question 20

The ASC regulates the
following claims:
Claims on
ingredients.
Number 1/leadership
claims.
Absolute claims.
Exclusivity claims.
Comparative claims.

Answer 20

Other Regulated
Claims

Question 21

refers to the practice in
which a company
attempts to advertise
and promote its
products by associating
them with a public
event without paying
the fees that an
exclusive sponsor is
required to pay.

Answer 21

Ambush Marketing

Question 22

Where the comparison
relates to a competitor’s
price, the competitor’s price
shall relate to the products
or services advertised or
sold in the 90-day period
and shall be representative
of the prices similar
products or services are sold
for or advertised in the
locality where the price
comparison was made.

Answer 22

Specific Rules &
Restrictions

Question 23

Direct comparison is
limited to products
intended for the same
purpose or belonging to
the same class or
category. Subjects of
direct comparison must
be clearly identified
without violating
intellectual property
rights.

Answer 23

Competitor Copyright
& Trademark

Question 24

An advertiser can challenge
claims made by a
competitor by filing a
complaint with the ASC.
Complaints may be filed
against an advertisement
that has been approved by
the ASC and that is already
on-air, published, displayed,
or posted or against an
advertisement that has not
gone through the Ad ASC
pre-screening process.

Answer 24

Challenging Comparative
Claims Made by Competitors

Question 25

Privacy and advertising

Answer 25

1.)E-Mail Marketing
2.)Telemarketing
3.)Text Messaging
4.)Marketing to children