Deck 15: Regulation of Advertising

Question 1

The FTC requires proof by _________________________ evidence when an advertiser makes a claim relating to health or safety.

Answer 1

competent and reliable scientific evidence

Question 2

Which of the following is not a sanction that may be used by the FTC to control false advertising?

A)consent order
B)ad substantiation
C)corrective advertising
D)reciprocal order

Answer 2

D

Question 3

The U.S.Supreme Court has held that commercial speech that truthfully advertises lawful products receives the same amount of First Amendment protection as which of the following?

A)Student speech
B)Obscene speech
C)Both student speech and obscene speech
D)Neither student speech nor obscene speech

Answer 3

D

Question 4

Under the Junk Fax Protection Act,unsolicited advertisement faxes are banned unless there is ______________________________ between the sender and recipient.

Question 5

The government may regulate the advertising of a completely legal product or service.

Question 6

Under the commercial speech doctrine,the government must prove that it has what type of an interest to justify a regulation a regulation on a truthful advertisement for a lawful product?

A)a compelling interest
B)a substantial interest
C)a probable interest
D)a reasonable interest

Question 7

Advertising agencies and the mass media can also be held responsible for false advertisements.

Question 8

In 2011,the FTC secured settlements for alleged violations of privacy rights committed by

A)Twitter.
B)Google.
C)both Twitter and Google.
D)neither Twitter nor Google.

Question 9

One of the most notorious individuals who has run of the FTC regulations for his infomercials is a man named __________.

Question 10

In determining whether an ad is deceptive,the FTC will view that ad from the perspective of the most vulnerable consumer.

Question 11

An advertisement that makes the claim that a company sells "the hottest fashions in town" is known as _________.

Question 12

The FTC has the power to enforce antitrust laws when two companies seek to merge.

Question 13

The ______________________ Act is designed to protect the privacy of children when they visit websites that attempt to collect personal information from them.

Question 14

In 2010,the 9^th U.S.Circuit Court of Appeals held in Coyote Publishing,Inc.v.Miller that Nevada's interest in which of the following things was/were sufficient to justify restricting advertisements for brothels in that state?

A)preventing the commodifying tendencies of prostitution.
B)preventing the rape of prostitutes.
C)preventing the spread and transmission of sexual diseases.
D)both "b" and "c" are correct.

Question 15

Commercial speech did not receive any First Amendment protection until

A)the 1920s
B)the 1950s
C)the 1960s
D)the 1970s

Question 16

Under the Lanham Act,an advertiser can force a medium,like a newspaper,to publish an advertisement.

Question 17

At issue in the case of Johanns v.Livestock Marketing Association was/were:

A)fraudulent advertisements about beef being "guaranteed" to be 100 percent free of Mad Cow Disease.
B)fraudulent advertisements about milk being "guaranteed" to be 100 percent free of bovine growth hormones.
C)the compelled funding of advertising for the beef industry.
D)the marketing of livestock on the Internet by ranchers.

Question 18

The FTC considers it deceptive if an advertiser

A)makes a false statement.
B)omits important information in an ad.
C)implies a false claim by juxtaposing two statements.
D)all of the above.

Question 19

The United States Supreme Court defines commercial speech as

A)advertisements that include the price of a product.
B)speech that proposes a commercial transaction.
C)advertisements that include the name of a company or manufacturer.
D)speech that specifically and with precision mentions the price of a product.

Question 20

The FTC cracked down in 2011 on fake "news" websites in which fake "reporters" tauted the alleged benefits of

A)acai berry supplements.
B)an abdominal exercise machine called the Rock Hard Abster.
C)a cholestoral lower drug called Calvinio.
D)bamboo-made clothing.

Question 21

Under the Central Hudson test for the commercial speech doctrine,the government must have evidence that the regulation in question __________ advances the government's interest.

Question 22

Identify the two critical components of the FTC's rules against deceptive advertising:

Question 23

It was not until the year ________ that the U.S.Supreme Court first held that commercial advertising enjoys a degree of First Amendment protection.

Question 24

Identify the three requirements that the government must satisfy in order to regulate an advertisement that is not deceptive or does not promote an illegal activity?