Deck 8: Marketing: Technology,Choice, Manipulation

Question 1

The Federal Trade Commission can successfully prove that a company's advertising violates the FTC Act if it can show the advertising gives the net impression that a misleading claim is being made that is material to consumers.

Answer 1

True

Question 2

The Lanham Act:
I) Focuses on trademark registration and protection.
II) Regulates the use of land by commercial entities.
III) Gives competitors the right to sue for false claims a rival company makes about the competitor's product.
IV) Does not allow a company to sue for false claims a rival company makes about their own products.

A)I & II only
B)II & III only
C)I and III only
D)I, II III, and IV

Answer 2

C

Question 3

Discuss some of the ways the FTC has curbed online marketing efforts.

Answer 3

The FTC's 2010 guidelines for online endorsements are aimed at tweets and blogger statements that are like ads.  When an advertiser pays a blogger or gives something of value to mention a product,readers need to be informed of that fact.  Disclosure must be clear.  Discussed experiences must be real.  If a blogger is paid to try something they disliked,the blogger or tweeter cannot say it was great.  Statements that require proof cannot be made when the blogger or tweeter does not have that proof.  The FTC has also targeted misleading door openers,which are advertisements concealed in surveys and in other ways to get consumers interested.  Advertisements that present themselves as news websites and reports have also been targeted.

Question 4

Which of the following is not an example of "native advertising" that the FTC has highlighted as deceptive?

A)Advertisements that pretend to be news reports.
B)"Door openers" that use surveys or prize awards to lure consumers into sales pitches.
C)Product endorsements that do not indicate that the endorser was paid to make the endorsement.
D)Advertisements that "pop up" when a consumer visits a news website.

Question 5

What is the Lanham Act? To succeed in suit under the Lanham Act,what must a company that believes its competitor is using misleading advertising prove?

Question 6

Which of the following reasons was offered by the court in Saray-Perez v.Wyeth for the need to include warnings in direct-to-consumer advertising?
I)Doctors spend less time with patients than they used to.
II)Pharmaceutical companies have the means to provide effective warnings to consumers.
III)The doctor-patient relationship is sacred.
IV)Patients have difficulty understanding warnings that accompany pharmaceutical products.

A)I only.
B)I and II only.
C)II and III only.
D)II and IV only.

Question 7

Identify the true statement regarding freedom of speech:

A)Speech cannot be regulated by the government.
B)Corporations are afforded free speech protection.
C)Commercial speech that is misleading is still entitled to free speech protection.
D)According to theCentral Hudsondecision, "protected commercial speech" cannot be regulated.

Question 8

In the case of R.J.Reynolds Tobacco Company,et al.v.FDA,explain how the Court applied the Central Hudson test.

Question 9

The Supreme Court has always viewed commercial speech and subject to First Amendment protections.

Question 10

Which of the following statements best describes the relationship between factual misrepresentations and puffery in advertisements?

A)A factual misrepresentation is demonstrably false, while puffery is a statement about the quality of a product that cannot be disproven because of its general nature.
B)Factual misrepresentation are minor false claims, while puffery are false claims that make significant claims about a product's effectiveness.
C)Both factual misrepresentations and puffery can lead to successful lawsuits by competitors under the Lanham Act.
D)Competitors can demonstrate that both factual misrepresentations and puffery are false.

Question 11

Describe the FDA's role in combating misleading food advertisements. How does its efforts compliment the efforts of the industry to regulate itself using the Lanham Act?

Question 12

The "creative revolution" in advertising refers to

A)The move from black and white to color advertising.
B)The move from talking about a product to showing what a product can do.
C)The move from showing what a product can do to making the product a status symbol.
D)The move from making a product a status symbol to using subliminal messaging to "force" consumers to buy the product.

Question 13

Discuss the standards of the Creative Code of the American Associate of Advertising Agencies.

Question 14

According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I) Socialism will work in all societies because consumers are willing to share their wealth.
II) The urgency of wants does not diminish as more of them are satisfied.
III) Wants originate in the personality of the consumer.

A)I only
B)I and II
C)III only
D)II and III

Question 15

Explain how the Central Hudson Test was used to strike down Congress's ban on the use of "Crazy Horse" on alcoholic beverages.

Question 16

Explain the difference between express and implied deceptive advertising.

Question 17

According to the Learned Intermediary Rule,pharmaceutical manufacturers do not have to warn consumers about drug dangers as long as they have adequately warned physicians.