A carpet cleaning firm runs a newspaper ad stating: "Special this month only! Three rooms of carpet cleaned for $39.95!" In each of the next ten months, the firm runs the same ad. A consumer advocacy group files suit against the carpet cleaning firm, contending that the ad is deceptive. The suit charges that the ad makes it seem as though the $39.95 price is a special price that will increase at the end of the month, when in reality, the price never changes. The U. S. federal law governing this type of situation is the:
A) Robinson-Patman Act.
B) Clayton Act.
C) Sherman Act.
D) Magnuson-Moss Act.
E) Wheeler-Lea Amendment.

Question

Quizplus · Accepted Answer

The Wheeler-Lea Amendment of 1938 prohibits false or misleading advertising, including advertising that creates a false sense of urgency or a misleading impression of the price or quality of a product. This law requires that advertisers be truthful and not deceptive in their advertising. The suit against the carpet cleaning firm is based on the allegation that the ad is deceptive because it creates a false sense of urgency and a misleading impression of the price. Therefore, the Wheeler-Lea Amendment is the best choice.

A Carpet Cleaning Firm Runs a Newspaper Ad Stating: "Special