Regulating the Media

Question 1

Advertising is different than copyright because….

Answer 1

1. It is persuasive
2. The speaker has a vested interest in your response to the message
3. It is bought and paid for before it reaches the consumer
4. The consumer helps pay for the message
5. The interest of the source makes the message particularly “sturdy.”

Question 2

What are the conditions of modern advertising?

Answer 2

1. Brand names
2. Improved transportation
3. Mass media

Question 3

What is the Central Hudson Test?

Answer 3

1. Is the ad accurate and does it advertise a legal product?
2. Does the government assert a substantial interest?
3. Does the regulation directly advance that interest?
4. Is the regulation narrowly drawn?

Question 4

What does the Supreme Court say about Commercial Speech? What case did this come from?

Answer 4

Non-deceptive commercial speech is protected by the First Amendment.

Question 5

Nike vs. Kasky

Answer 5

1. Nike responds to criticisms of it’s treatment of workers in foreign plants
2. Attorney Mark Kasky sues Nike for unfair and deceptive practices
3. California Court of Appeals says Nike’s response is a part of a debate on matters of public concern
4. The California Supreme Court says a commercial speaker is talking to a commercial audience.
5. The Supreme Court says nothing but we will have to sooner or later.

Question 6

What is the FTC?

Answer 6

1. established by Congress in 1914 to prohibit “unfair methods of competition in commerce.”
2. 1934, a court case allowed the FTC to regulate the unfair marketing of candy to children
3. 1938, the FTC Act amended to prohibit “unfair methods of competition in commerce and unfair and deceptive acts or practices in commerce.” Fals

finish this slide from Emily’s notes

Question 7

So what can the FTC do?

Answer 7

1. May regulate advertising if it can show:

finish this slide from Emily’s notes

Question 8

,

Answer 8

1. Is there a representation, omission or practice that is likely to mislead?
2. The representation, omission or practice must be likely to mislead a reasonable consumer
3. The representation, omission or practice must be material
4. The representation or omission must be likely to cause harm

Question 9

What are not allowed?

Answer 9

Mockups are not allowed.

Question 10

How did the FTC remedy these facts?

Answer 10

1. Staff opinion letters
2. Advisory opinions
3. Industry guides
4. Policy statements
5. Trade regulation rules

Question 11

FTC remedies after the fact?

Answer 11

1. Consent decrees
2. Cease and desist orders
3. Injunctions
4. Civil penalties
5. Criminal penalties

Question 12

What happened in Red Lion Broadcasting v. FCC?

Answer 12

The FCC forced Red Lion to broadcast a message that it did not want to broadcast.