Question 1

_____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices.

Accepted Answer

Trade regulation rules are industry-wide rules used by the Federal Trade Commission to define unfair or deceptive practices. These rules apply to all companies within an industry and are designed to protect consumers from false or misleading advertising or business practices.

Question 2

A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants.This is an example of:

Accepted Answer

This is an example of puffery, which is a statement that is so generalized or subjective that it cannot be proved true or false. The claim of having "more chocolate-taste" is subjective and cannot be measured, making it an example of puffery.

Question 3

_____ has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions,superlatives,or exaggerations,vaguely and generally,stating no specific facts."

Accepted Answer

Puffery is a legal term for advertising that makes extravagant and unrealistic claims about a product or service without actually stating any facts. Unlike deceptive advertising, puffery is not considered illegal because it does not involve making false statements or intentionally misleading consumers.

Question 4

An advertiser who says that his product is the "best," "greatest," etc.is using ____,which is a(n)______ form of advertising.

Accepted Answer

Puffery is subjective exaggeration or hyperbole and is considered a legal form of advertising. It is a common practice in advertising to use puffery, such as claiming a product is the "best" or "greatest," to grab consumers' attention and create a positive image for the product. While puffery may be seen as exaggerated, it is not considered deceptive or illegal.

Question 5

As per FTC,_____ occurs when qualifying information necessary to prevent a practice,claim,representation,or reasonable belief from being misleading is not disclosed.

Accepted Answer

Misleading omission occurs when qualifying information that is necessary to prevent a practice, claim, representation, or reasonable belief from being misleading is not disclosed.

Question 6

According to the FTC's definition of deception,a representation,omission,or practice has materiality if it:

Accepted Answer

Materiality refers to the importance or significance of the information to the consumer and its potential impact on their purchase decision. Therefore, option C is the correct answer. The other options are not directly related to the concept of materiality.

Question 7

The key elements in the FTC's definition of deception are that the representation,omission,or practice must be likely to mislead the reasonable consumer and that it has:

Accepted Answer

Materiality is the key element in the FTC's definition of deception, which means that the representation or omission is important enough to affect a consumer's purchasing decisions. The other choices, such as selective exposure, selective retention, multiple interpretations, and peripheral importance, are not mentioned in the definition of deception.

Question 8

The Federal Trade Commission may require affirmative disclosure if:

Accepted Answer

The answer of The Federal Trade Commission may require affirmative...

Question 9

According to the Federal Trade Commission _____ exists if there is a misrepresentation,omission,or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer's detriment.

Accepted Answer

Deception is defined as a misrepresentation, omission, or practice that is likely to mislead the consumer, and it has a negative impact on the consumer. Puffery refers to exaggerated or vague statements that cannot be proven, while affirmative disclosure and selective disclosure refer to the obligation to disclose certain information to consumers in certain circumstances. Selective retention refers to the selective or biased recall of information by consumers.

Question 10

Which of the following is the best example of the use of puffery in advertising?

Accepted Answer

Puffery is exaggerating claims without an intent to deceive. Godiva's claim that it makes the finest chocolates in the world is an example of puffery. It cannot be proven, but it is an opinion that is often accepted by consumers. The other options are specific claims that can be proven or verified.

Question 11

In 1995,the Federal Trade Commission issued a complaint against the manufacturers of New Balance and Saucony athletic shoes based on their "Made in the USA" advertising claims.The FTC claimed the ads were misleading since imported soles and upper parts were used to make the shoes.These claims can be viewed as deceptive under the FTC's requirement of:

Accepted Answer

The FTC's requirement of affirmative disclosure requires advertisers to disclose any material connection or limitation when making a claim. In this case, the claim of "Made in the USA" was misleading as the shoes were not entirely made in the USA. Therefore, the manufacturers should have disclosed the use of imported parts in their advertising.

Question 12

Controversy over the FTC's authority to regulate unfair advertising practices began in 1978,when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children.

Accepted Answer

The FTC's controversial rule restricting advertising to children is known as the "kid vid" rule, which was formulated in 1978. The other options are not relevant to the controversy over the FTC's authority to regulate unfair advertising practices in the context of advertising to children.

Question 13

it must not be outweighed by countervailing benefits to consumers or competition.

Accepted Answer

Unfairness in consumer protection law refers to practices that cause substantial injury to consumers, which is not outweighed by countervailing benefits to consumers or competition.

Question 14

The Federal Trade Commission takes the position that:

Accepted Answer

The Federal Trade Commission believes that consumers can recognize puffery and don't necessarily believe it. However, they still require companies to provide truthful and accurate information in their advertising.

Question 15

Nestlé claims "Nestlé makes the very best chocolate," Snapple advertises that its beverages are "made from the best stuff on Earth," are all examples of:

Accepted Answer

The statements in the example are exaggerated claims known as puffery. Puffery is a legal marketing technique that exaggerates or makes claims that are not meant to be taken seriously. While Nestlé and Snapple's claims are subjective, they are not considered deceptive because they are not factual claims that can be proven or disproven.

Question 16

The Magnuson-Moss Act of 1975:

Accepted Answer

The Magnuson-Moss Act of 1975 dealt with consumers' rights regarding product warranties, specifically outlining requirements for warranty disclosures and prohibiting businesses from disclaiming or modifying warranties in a deceptive manner.

Question 17

Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception?

Accepted Answer

Significant omission of important information is one of the two factors considered by the FTC in evaluating an ad for deception. The other factor is the presence of a misleading statement or practice. Presence of superlative words and puffery in the advertisement are not considered deceptive if they are not likely to mislead consumers. Lack of selective disclosure and violation of trade regulation rules are related but not the factors that the FTC considers in evaluating an ad for deception.

Question 18

The _____ gave the Federal Trade Commission the power to establish trade regulation rules.

Accepted Answer

The Magnuson-Moss Act of 1975 gave the Federal Trade Commission (FTC) the authority to establish trade regulation rules.

Question 19

The Federal Trade Commission (FTC)defines _____ as an express or implied statement contrary to fact.

Accepted Answer

The definition provided by the FTC matches the definition of misrepresentation, which is making an untrue statement or presenting something in a false or misleading way.

Question 20

Which of the following statements about the use of puffery in advertising is true?

Accepted Answer

Puffery refers to exaggerated and subjective claims that are not meant to be taken seriously. Superlatives like greatest, best, and finest are examples of puffs commonly used in advertising. Puffery is not illegal as long as it does not make false or misleading claims that are likely to deceive consumers. The Federal Trade Commission recognizes that consumers generally understand puffery and do not rely on it when making purchasing decisions.

Quiz 18: Regulation of Advertising and Promotion

_____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices.

A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants.This is an example of:

_____ has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions,superlatives,or exaggerations,vaguely and generally,stating no specific facts."

An advertiser who says that his product is the "best," "greatest," etc.is using ,which is a(n) __ form of advertising.

As per FTC,_____ occurs when qualifying information necessary to prevent a practice,claim,representation,or reasonable belief from being misleading is not disclosed.

According to the FTC's definition of deception,a representation,omission,or practice has materiality if it:

The key elements in the FTC's definition of deception are that the representation,omission,or practice must be likely to mislead the reasonable consumer and that it has:

The Federal Trade Commission may require affirmative disclosure if:

According to the Federal Trade Commission _____ exists if there is a misrepresentation,omission,or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer's detriment.

Which of the following is the best example of the use of puffery in advertising?

Controversy over the FTC's authority to regulate unfair advertising practices began in 1978,when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children.

it must not be outweighed by countervailing benefits to consumers or competition.

The Federal Trade Commission takes the position that:

Nestlé claims "Nestlé makes the very best chocolate," Snapple advertises that its beverages are "made from the best stuff on Earth," are all examples of:

The Magnuson-Moss Act of 1975:

Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception?

The _____ gave the Federal Trade Commission the power to establish trade regulation rules.

The Federal Trade Commission (FTC) defines _____ as an express or implied statement contrary to fact.

Which of the following statements about the use of puffery in advertising is true?

Quiz 18: Regulation of Advertising and Promotion

_____ are industry-wide rules used by the Federal Trade Commission that define unfair or deceptive practices.

A prepackaged milkshake sold in convenience stores advertises that it has more chocolate-taste than shakes purchased at restaurants.This is an example of:

_____ has been legally defined as "advertising or other sales presentations which praise the item to be sold with subjective opinions,superlatives,or exaggerations,vaguely and generally,stating no specific facts."

An advertiser who says that his product is the "best," "greatest," etc.is using ____,which is a(n) ______ form of advertising.

As per FTC,_____ occurs when qualifying information necessary to prevent a practice,claim,representation,or reasonable belief from being misleading is not disclosed.

According to the FTC's definition of deception,a representation,omission,or practice has materiality if it:

The key elements in the FTC's definition of deception are that the representation,omission,or practice must be likely to mislead the reasonable consumer and that it has:

The Federal Trade Commission may require affirmative disclosure if:

According to the Federal Trade Commission _____ exists if there is a misrepresentation,omission,or practice that is likely to mislead the consumer acting reasonably in the circumstances to the consumer's detriment.

Which of the following is the best example of the use of puffery in advertising?

Controversy over the FTC's authority to regulate unfair advertising practices began in 1978,when the agency relied on this mandate to formulate its controversial _____ rule restricting advertising to children.

it must not be outweighed by countervailing benefits to consumers or competition.

The Federal Trade Commission takes the position that:

Nestlé claims "Nestlé makes the very best chocolate," Snapple advertises that its beverages are "made from the best stuff on Earth," are all examples of:

The Magnuson-Moss Act of 1975:

Which of the following is one of the two of the factors the FTC considers in evaluating an ad for deception?

The _____ gave the Federal Trade Commission the power to establish trade regulation rules.

The Federal Trade Commission (FTC) defines _____ as an express or implied statement contrary to fact.

Which of the following statements about the use of puffery in advertising is true?

An advertiser who says that his product is the "best," "greatest," etc.is using ,which is a(n) __ form of advertising.