Question 1

A business that cannot provide scientific evidence to support its marketing claims may be held liable for deceptive advertising.

Accepted Answer

Businesses must ensure their marketing claims are truthful and substantiated. If they make claims that cannot be backed by scientific evidence or factual information, they may be considered deceptive and could face legal consequences under consumer protection laws.

Question 2

A false statement or unjustified claim about a competitor's products can result in liability for deceptive advertising.

Accepted Answer

Making false statements or unjustified claims about a competitor's products can be considered deceptive advertising, which is illegal and can lead to liability under laws that regulate advertising and consumer protection.

Question 3

Bait-and-switch advertising occurs if the seller fails to have reasonably adequate quantities of the advertised item available.

Accepted Answer

Bait-and-switch advertising involves advertising a product at a specific price to attract customers, but then revealing that the product is not available or only available in inadequate quantities, with the intention of selling a different, often more expensive item.

Question 4

The Lanham Act protects against the deceptive use of trademarks but does not cover false advertising claims.

Accepted Answer

The Lanham Act covers both trademark infringement and false advertising, providing remedies for deceptive practices in both areas.

Question 5

The Federal Commerce Commission is charged with the goal of preventing unfair and deceptive trade practices.

Accepted Answer

The Federal Trade Commission (FTC) is the agency charged with preventing unfair and deceptive trade practices.

Question 6

A deceptive ad for a product involving wrongful charges to consumers may result in an award of damages of a defendant's unjust gains and consumers' losses.

Accepted Answer

In cases involving deceptive advertising that leads to wrongful charges to consumers, courts can award damages that include both the defendant's unjust gains (profits made from the deceptive practice) and the losses suffered by consumers as a result of the deception. This is to ensure that victims are compensated for their losses and to deter the defendant and others from engaging in similar deceptive practices.

Question 7

An obviously exaggerated advertising claim will be considered deceptive even if a reasonable consumer would not believe it to be true.

Accepted Answer

An obviously exaggerated claim, often referred to as "puffery," is not considered deceptive because it is understood that a reasonable consumer would not take the claim seriously.

Question 8

Labels must be accurate and use words easily understood by the ordinary consumer.

Accepted Answer

Labels are designed to provide consumers with essential information about a product in a clear and understandable manner, ensuring they can make informed choices.

Question 9

An ad is more likely to be considered fair if its benefit to consumers or the competition outweighs any injury it might cause to the interests of consumers.

Accepted Answer

An ad is considered fair if the benefits to consumers or competition outweigh any potential harm, aligning with principles of fairness in advertising.

Question 10

A consumer may recover under a state consumer-fraud statute, even if he or she has not suffered actual damages proximately caused by a deceptive act.

Accepted Answer

Most state consumer-fraud statutes require that a consumer demonstrate actual damages caused by the deceptive act to recover under the statute.

Question 11

Federal law does not require food product labels to identify the product .

Accepted Answer

Federal law requires food product labels to identify the product, list ingredients, provide the net quantity of contents, and name the place of business of the manufacturer, packer, or distributor.

Question 12

Half-truths-information that is true but incomplete-are not deceptive because such statements are at least half true.

Accepted Answer

Half-truths can be deceptive because they may intentionally omit important information, leading the receiver to draw incorrect conclusions, despite being partially true.

Question 13

The Federal Trade Commission actively monitors online advertising.

Accepted Answer

The Federal Trade Commission (FTC) actively monitors online advertising to ensure that ads are truthful, not misleading, and protect consumers.

Question 14

If an advertisement is proven to be deceptive, it may be subject to a cease-and-desist order.

Accepted Answer

If an advertisement is found to be deceptive, regulatory bodies such as the Federal Trade Commission (FTC) in the United States can issue a cease-and-desist order to stop the advertisement from being aired or published, to protect consumers from misleading information.

Question 15

Generally, online ads-unlike other ads-can be less than truthful and not every claim must be substantiated.

Accepted Answer

Online ads, like all advertising, are subject to regulations that require claims to be truthful and substantiated. Regulatory bodies such as the Federal Trade Commission (FTC) in the United States enforce these rules to prevent deceptive advertising practices.

Question 16

Deceptive advertising occurs if a reasonable consumer believes an advertising claim.

Accepted Answer

Deceptive advertising occurs when an advertisement misleads consumers either through false statements, omitted information, or other misleading practices, not merely because a reasonable consumer believes an advertising claim.

Question 17

Because consumers may not read an entire web page, an online disclosure should be placed as close as possible to any claim being qualified.

Accepted Answer

Placing online disclosures close to the claims they qualify helps ensure that consumers notice and understand them, making it more likely that the information will be read and taken into account.

Question 18

Advertising will be deemed deceptive if it includes a claim that omits a material fact about a product.

Accepted Answer

Advertising is considered deceptive if it fails to include information that is important to the consumer's decision-making process, thereby potentially leading to a misleading impression of the product.

Question 19

The Telemarketing Sales Rule applies to any offer-domestic or foreign-made to consumers in the United States.

Accepted Answer

The Telemarketing Sales Rule (TSR) applies to telemarketing calls made to consumers in the United States, regardless of where the offer or solicitation originates from. This includes calls made from outside the U.S. to consumers within the U.S.

Question 20

Shipping times promised in ads are estimates-merchants are not required to notify consumers when orders cannot be shipped as timely as promised.

Accepted Answer

Merchants are required to notify consumers and obtain their consent to the delay when they are unable to ship items within the promised time frame, according to the FTC's Mail, Internet, or Telephone Order Merchandise Rule.

Quiz 41: Consumer Law