Scenario 4-4
Joe Rowan walked into Pederson Toyota one day and began looking at price stickers on Toyota Camrys.He was interested in that model because he had seen a number of television and magazine ads describing the car's features and reputation for reliability.After closely examining the stickers, Joe noticed a line that said "Dealer Promotion Allowance-$125.00." Joe asked a salesperson what that meant.The salesman replied that it was a charge that helped the dealership pay for local advertising to encourage consumers to shop at that particular dealer.After further discussion, Joe learned that almost 5 percent of the cost of the vehicle comes from expense for national and local advertising.
-(Scenario 4-4) Which government agency might eventually be reviewing the case if Joe felt he should file a complaint about advertising in the automotive industry?

Question

Quizplus · Accepted Answer

The Federal Trade Commission (FTC) is responsible for enforcing advertising laws and regulations, and for investigating and prosecuting deceptive or unfair advertising practices. Since Joe has concerns about the advertising of the dealership and the promotion allowance on the price sticker, the FTC would be the appropriate agency for reviewing his complaint.

Scenario 4-4 Joe Rowan Walked into Pederson Toyota One Day and Began