Deck 12: Commercial Speech

Question 1

In the Central Hudson case the Supreme Court established a four-step test to determine the constitutionality of advertising regulation.Which of the following is not a correctly stated one of the steps?

A)Is the commercial message either misleading or related to unlawful activity?
B)Does the government have a compelling reason to place a restriction on speech?
C)Does the restriction directly advance the government's interest?
D)Is the restriction no more extensive than necessary to further the government's interest?

Answer 1

B

Question 2

In the 1980s the FTC appeared to

A)increase the frequency of fines against advertisers.
B)increase the dollar amounts of fines against advertisers.
C)back off from its aggressive role of the 1970s.
D)focus exclusively on product packaging.

Answer 2

C

Question 3

Under the _________ advertisers must have a reasonable basis,in advance,for all verifiable product claims made.

A)industry guides
B)trade regulation rules
C)prior substantiation doctrine
D)Lanham Act

Answer 3

C

Question 4

The federal Trade Commission's basic authority is derived from Section 5 of the Federal Trade Commission Act,which charges the FTC with the responsibility to regulate

A)all advertising agencies' business practices.
B)any expression that mentions a specific product or service by name.
C)unfair or deceptive acts or practices affecting commerce.
D)All of the above

Question 5

The Federal Trade Commission has defined deceptive advertising as a material representation or omission that

A)has the capacity to mislead any consumer.
B)contains false express representations.
C)is likely to mislead a reasonable consumer.
D)actually misleads a majority of consumers.

Question 6

The Federal Trade Commission is

A)an advisory agency that reports to Congress.
B)an agency within the Labor Department.
C)a nonprofit watchdog organization funded by government grants.
D)an independent federal agency headed by five commissioners.

Question 7

In the famous Rapid Shave case,a commercial for the shaving cream was held deceptive because

A)A Plexiglas mock-up was used as proof of a product claim.
B)The advertiser lacked substantiation for the claims made.
C)Rapid shave could prevent but not "cure" dry skin.
D)Mashed potatoes were actually used in place of Rapid Shave.

Question 8

A "material" representation in an ad is one that

A)is likely to influence a consumer's choice of a product.
B)involves a purchase price of $50 or more.
C)requires specific conduct by a consumer.
D)describes the contents of a product.

Question 9

What is the legal status of commercial speech that is false or misleading?

A)It is still fully protected under the First Amendment.
B)It is automatically subject to a libel lawsuit.
C)Protection for commercial speech is deemed lost if the expression is false or misleading.

Question 10

In which case did the Supreme Court first hold that "pure commercial speech" is generally protected by the First Amendment?

A)Bolger v.Youngs Drug Products
B)Virginia State Board of Pharmacy v.Virginia Citizens Consumer Council
C)Valentine v.Chrestensen
D)Bates v.State Bar of Arizona

Question 11

Historically,commercial speech was classified by courts as a form of expression unprotected by the First Amendment.In what case was this view endorsed by the Supreme Court?

A)Bolger v.Youngs Drug Products
B)Virginia State Board of Pharmacy v.Virginia Citizens Consumer Council
C)Valentine V.Chrestensen
D)Bates v.State Bar of Arizona

Question 12

What did the government have to show in the Bolger case in order for the federal statute against mailed contraceptive ads to be upheld?

A)That the federal statute concerned symbolic speech.
B)That the federal statute was restricting false advertising,rather than the product itself.
C)That the restriction was carefully tailored to serve a substantial interest.
D)That the restriction was tailored to serve a compelling interest.

Question 13

If the Commission determines that a voluntary settlement cannot satisfactorily be achieved with an advertiser,then it typically will seek a binding

A)class action lawsuit.
B)cease and desist order.
C)license revocation.
D)public warning.

Question 14

In the 1999 case of Greater New Orleans Broadcasting v.United States the Supreme Court held that:

A)The power of government to regulate gambling includes the power to prohibit advertising of gambling.
B)Commercial speech deserves exactly the same degree of protection as political speech.
C)Commercial advertising,even if truthful,has no greater protection than obscenity.
D)Where gambling casinos are legal,the government may not prohibit their advertising unless the ban directly advances a substantial interest.

Question 15

An advertisement can be ruled deceptive even though it is literally true in every respect.

Question 16

One FTC industry guide specifies that an advertising endorsement must always reflect the honest beliefs of the endorser.

Question 17

The FTC will not rule an advertising claim deceptive if the claim qualifies as "puffery."

Question 18

Disclosure requirements are generally viewed by the courts as a less objectionable kind of speech restriction than outright bans.

Question 19

Why did the Court in Bolger v.Youngs Drug Products classify the mailings as commercial speech?

A)The pamphlets included references to a specific product.
B)The company had an economic motive for mailing the pamphlets.
C)The company paid for the pamphlets.
D)All of the above.

Question 20

In 2009 the FTC updated its Guides Concerning the Use of Endorsements,and the Guides now cover

A)college lectures.
B)political speeches.
C)newspaper editorials.
D)blogging.

Question 21

Can the advertising media,such as magazines,be held liable for the misleading ads they carry? Explain.

Question 22

How much evidence is needed to satisfy the prior substantiation requirement of the FTC? Explain.

Question 23

Which of the following is not among the Federal Trade Commission's enforcement powers against illegal advertising?

A)Cease-and-desist orders
B)Trademark revocations
C)Corrective advertising
D)Civil penalties

Question 24

Unlike the Federal Trade Commission Act or the Lanham Act,many state anti-deception laws authorize the filing of private lawsuits by

A)business competitors.
B)consumers.
C)government officials.

Question 25

A special problem of the Internet is distribution of unsolicited,commercial e-mails,or "spamming." How does the "CAN-SPAM" Act,which became effective in 2004,combat this problem?

Question 26

A false-advertising claim under section 43(a)of the Lanham Act rests on four elements.Which of the following is not one of them?

A)A false representation of fact made by an advertiser about a product
B)A representation that deceives,or has a tendency to deceive,a substantial segment of the audience
C)A representation that is likely to influence purchasing decisions.
D)A plaintiff who is a consumer and who was financially injured by the representation.