Wagner Tire, a manufacturer of tires, is developing an advertising campaign that is set to claim that cars using its new RX model stop 25 percent faster on wet surfaces when compared to other brands of tires. The company must conduct careful studies to provide support for the claim because:
A) the Federal Trade Commission may sue Wagner for comparative advertising.
B) Wagner's competitors may sue the company under the Lanham Act if it cannot substantiate its claims.
C) the Better Business Bureau may sue Wagner if it cannot substantiate its claims.
D) the Federal Trade Commission may charge Wagner for using puffery, which is an illegal form of advertising.
E) the consumers may sue the company for the non-substantiation of the ad.
Correct Answer:
Verified
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