ECNAL Corp.manufactures bicycle parts.One of its new products,the Slipstream tire,is advertised to be 20 percent stronger than that of its competitors due to a new rubber compound used that makes the tires skid resistant.After receiving complaints of fraud,the Federal Trade Commission (FTC)determines that the tire is made from rubber similar to that found in most bicycle tires and is not skid resistant.The FTC orders ECNAL to run an ad admitting that its advertisements were misleading and remove the untrue information from its advertisements.In this scenario,which of the following remedies is used by the FTC?

Question

Quizplus · Accepted Answer

In this scenario, the Federal Trade Commission (FTC) uses corrective advertising as a remedy. When a company has advertised deceptively, the FTC can require it to run ads that admit the prior errors and correct the erroneous information.