Test 1 - Ch 2b

Question 1

Truth in Advertising

Answer 1

• Deception is making false or misleading statements.
• Puffery (commercial exaggeration) is legal.
• Cannot legislate against emotional appeals

Question 2

Advertising to Children

Answer 2

• Advertising promotes superficiality and materialism in children.
• Children are inexperienced and easy prey.
• Persuasion to children creates child- parent conflicts

Question 3

Advertising Controversial Products

Answer 3

Critics question the “targeting” of minorities.- Tobacco, alcohol, gambling and lotteries are product categories of greatest concern.

Question 4

Areas of Advertising Regulation

Answer 4

• Deception and Unfairness
• Vertical cooperative advertising
• Comparison Advertisements

Question 5

Key Regulatory Agents : Three primary groups

Answer 5

Government bodies, Industry organizaton, Consumers

Question 6

Government bodies

Answer 6

1. Federal Trade Commission (FTC)
2. Federal Communications Commission (FCC)
3. Food and Drug Administration (FDA)
4. U.S. Postal Service

Question 7

Industry organizations

Answer 7

1. National Advertising Review Board (NARB)
2. State and Local Better Business Bureaus
3. Ad Agencies and Associations(4As)
4. Media Organizations

Question 8

Consumers

Answer 8

1. Consumer Federation of America
2. Consumers Union
3. Consumer Alert

Question 9

Consumerism grass roots

Answer 9

consumer movements

Question 10

FDA role in advertising

Answer 10

The FDA strives to ensure that consumers have complete information by ensuring that products are labeled truthfully