regulation of advertising and promotion

Question 1

3 advertising controls

Answer 1

self regulation
state regulation
federal regulation

Question 2

self regulation

Answer 2

voluntary internal regulation practiced and promoted within an industry

Question 3

why self regulate?

Answer 3

consumer perception and trust
good aspect of your brand
government stays out of your business

Question 4

limitations to self regulation

Answer 4

resolving a problem is time consuming
budgeting and staff restraints number of cases that can be reviewed
financial support is limited
lack of power or authority to be a viable alternative to federal or state regulation

Question 5

federal trade commission (FTC)

Answer 5

administers antitrust and consumer protection legislation in pursuit of free and fair competition in the marketplace

Question 6

Federal Communications Commission FCC

Answer 6

to regulate interstate communications by radio, television, wire, satellite, and cable

Question 7

Food and drug administration

Answer 7

protecting the public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, and medical devices

Question 8

US postal service

Answer 8

regulate what can be seen on packaging

Question 9

bureau of alcohol, tobacco, and firearms

Answer 9

protects our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, and acts of terrorism,

Question 10

unfairness according to FTC

Answer 10

• causes substantial physical or economic injury to consumer
• could not reasonably be avoided by consumers
• must not be outweighed by countervailing benefits to consumers or competition

Question 11

materiality

Answer 11

misrepresentation or practice is likely to affect consumers purchase decision

Question 12

puffery

Answer 12

praising the item to be sold with exaggerations stating no specific facts

ex: vitamin industry states “ive never felt better!” but says nothing more

Question 13

deception

Answer 13

use of confusing, misleading, or blatantly untrue statements when promoting a product
ex: activia yogurt has the same amount of vitamins for digestive help as all the other

Question 14

FTC programs to prevent deceptive advertising

Answer 14

affirmative disclosure

advertising substantiation

Question 15

FTC programs deal with deceptive ads after it occurs

Answer 15

cease and desist orders
consent orders
corrective advertising

Question 16

corrective advertising

Answer 16

guilty advertisers should run additional advertising to remedy the deception or misinformation