Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:
A) be concerned about the possibility of the firm getting a monopoly.
B) allow the company to call the product "new" for only six months.
C) probably not approve of this at all because the product doesn't meet the FTC's definition of "new."
D) allow the promotion effort if it felt that consumers would think the coloring made it "new."
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

The FTC defines a product as "new" only if it has been on the market for less than six months. Adding new coloring to an established mouthwash would not meet this definition, and the FTC would likely not approve of labeling it as a "new" product. Additionally, the FTC may also take issue with any false or misleading advertising associated with the promotion effort.

Seeking to Stop Declining Sales for an Established Mouthwash, a Sales