Question 1

In addition to handling complaints about advertising to children,which agency also prescreens ads directed to children?

Accepted Answer

The Children's Advertising Review Unit (CARU) not only handles complaints about advertising to children but also prescreens ads directed to children. The Advertising Self-Regulatory Council (ASRC) and the National Advertising Division (NAD) also oversee advertising and handle complaints, but they do not have a specific focus on children's advertising. The Federal Communications Commission (FCC) primarily regulates telecommunications and broadcasting, and their role in advertising is more related to issues such as truth in advertising and sponsorship identification.

Question 2

The Council of Better Business Bureaus is an industry regulatory resource that is available to consumers,but not businesses.Businesses must use the FTC to file complaints.

Accepted Answer

The Council of Better Business Bureaus is available to both consumers and businesses. However, businesses can also use the FTC to file complaints.

Question 3

In investigating a complaint about deceptive advertising,the role of the National Advertising Division is to collect information and evaluate data concerning the complaint to determine whether the advertiser's claim is properly substantiated.

Accepted Answer

The statement accurately describes the role of the National Advertising Division.

Question 4

Cases filed with one of the agencies in the Council of Better Business Bureaus are normally heard sooner and are less costly than cases filed with the FTC.

Accepted Answer

This is because the Council of Better Business Bureaus offers dispute resolution services that are quicker and less expensive compared to the formal legal process of the FTC.

Question 5

Business ethics are:

Accepted Answer

Business ethics refers to moral principles that guide the actions of individuals and organizations in the business world. These principles serve as guidelines for making decisions and conducting business in an honest and fair manner. While individuals may hold their own personal beliefs or principles, business ethics specifically refer to moral principles that serve as guidelines for both individuals and organizations within the context of the business environment. Choice C best captures this definition.

Question 6

If the National Advertising Review Board rules that a firm's advertisements are not substantiated,then the NARB orders the firm to discontinue the ads.This is very similar to the cease and desist order of the FTC.

Accepted Answer

The answer of If the National Advertising Review Board rules...

Question 7

In addition to handling complaints about advertising to children,the National Advertising Review Board (NARB)now prescreens ads directed to children.

Accepted Answer

The National Advertising Review Board (NARB) does not currently prescreen ads directed to children. Their role is to handle complaints about advertising, including those related to children.

Question 8

What are the advantages of industry oversight of advertising practices?

Accepted Answer

The answer of What are the advantages of industry oversight...

Question 9

The Children's Advertising Review Unit of the CBBB operates in a manner similar to the National Advertising Division of the CBBB in terms of handling complaints.

Accepted Answer

The Children's Advertising Review Unit (CARU) of the Better Business Bureau (BBB) does operate in a similar manner to the National Advertising Division (NAD) of the BBB in handling complaints, but with a focus on ads and marketing directed at children. CARU evaluates ads and promotions to ensure they are truthful, accurate, and appropriate for children under the age of 12. Like NAD, CARU also encourages industry self-regulation and provides guidance to advertisers to help ensure compliance with guidelines and regulations.

Question 10

Which statement below about the advertising of underwear,sexually-related products,feminine hygiene products,and male enhancement products is false?

Accepted Answer

The statement about the decline in sensitivity towards child molestation, child pornography, and related sexual issues is false. In fact, there has been an increase in awareness and sensitivity towards these issues in recent years, with stricter laws and regulations put in place to combat them.

Question 11

Cases that are not settled by the NAD are referred to the Federal Trade Commission.

Accepted Answer

Cases that are not settled by the National Advertising Division (NAD) can be referred to the appropriate government agency, often the Federal Trade Commission (FTC), but the NAD itself does not enforce its decisions; it relies on voluntary compliance or refers non-compliant cases to the appropriate regulatory authority.

Question 12

Identify the primary industry agencies that assist in regulating the marketing and advertising industry.Explain the primary function of each.

Accepted Answer

The answer of Identify the primary industry agencies that assist...

Question 13

A complaint filed with the National Advertising Division of the Council of Better Business Bureaus regarding an unsubstantiated advertising claim would be dismissed because substantiation is not a criterion.

Accepted Answer

The National Advertising Division of the Council of Better Business Bureaus requires substantiation for advertising claims, so a complaint filed regarding an unsubstantiated claim would not be dismissed.

Question 14

The Children's Advertising Review Unit (CARU)of the Council of Better Business Bureaus monitors online privacy practices of websites that involve children younger than 13 years of age.

Accepted Answer

The statement is true as CARU does monitor the online privacy practices of websites that involve children under 13 years of age.

Question 15

The Children's Advertising Review Unit (CARU)of the CBBB investigates and monitors all forms of advertising in all media directed toward children younger than 18 years of age.

Accepted Answer

The Children's Advertising Review Unit (CARU) of the CBBB specifically focuses on advertising directed toward children under the age of 12, not 18.

Question 16

The most common and well-known advertising and marketing industry regulatory agencies are all part of the FTC.

Accepted Answer

While the Federal Trade Commission (FTC) plays a significant role in regulating advertising and marketing practices in the United States, there are also other independent agencies and industry self-regulatory bodies involved in the oversight of advertising standards, such as the Better Business Bureau (BBB), the National Advertising Division (NAD) of the BBB National Programs, and the Advertising Self-Regulatory Council (ASRC).

Question 17

The advantages of using industry-based agencies to resolve advertising complaints rather than governmental agencies,such as the FTC,include all of the following except:

Accepted Answer

Industry-based agencies for resolving advertising complaints typically do not have judges; instead, they use industry experts or panels. Governmental agencies like the FTC may involve legal proceedings where judges are required.

Question 18

The National Advertising Review Board seldom refers cases to the FTC.

Accepted Answer

The National Advertising Review Board is a self-regulatory organization, and it usually recommends changes to advertisements rather than referring cases to the FTC. However, in some cases, the NARB may refer cases to the FTC for further investigation and potential enforcement action.

Question 19

If a complaint concerning false or misleading advertising is referred to the Better Business Bureau,the complaint would first be heard by the National Advertising Review Board (NARB).

Accepted Answer

The Better Business Bureau (BBB) first attempts to resolve complaints directly through its own complaint resolution process. The National Advertising Review Board (NARB) is an appellate body for advertising disputes and would only hear cases if the initial BBB process does not resolve the issue or if a party appeals the BBB's decision.

Question 20

The National Advertising Review Board is composed of advertising professionals and prominent civic individuals.

Accepted Answer

The National Advertising Review Board is indeed composed of advertising professionals and prominent civic individuals.

Quiz 14: Regulations and Ethical Concerns