AD Ch. 4 Legal and Ethical Challenges in Advertising

This is defined in the chapter as a sponsored media message intended to persuade you to think, do, or buy something.

Advertising

This is defined in the chapter as advertising claims that directly praise the product with subjective opinions or superlative language, offering no specific facts to support them, but that no reasonable person would take as a literal superiority claim.

Puffery

What is NOT one of the four basic categories of advertising regulation presented in the chapter?

Agency oversight

The National Advertising Division (NAD) and the National Advertising Review Board (NARB) are two of the most important arms of ________.

BBB National Programs

What is NOT presented in the chapter as one of the three basic elements contained in the FTC policy on deceptive advertising.

Is the presentation far-reaching?

These FTC orders will put an immediate legal stop to an advertising claim in question.

"Cease and Desist"

The chapter calls this "one of the murkier areas of advertising communication and one that leads to some of the most intense arguments in the industry."

Puffery

What is an example of a company complying with a CARU recommendation?

Subway better disclosing material information in advertising its "Amazon Fire Kids Edition" sweepstakes

T/F: It is best to think of the NAD and the NARB as a private industry court of law where advertising claims are adjudicated for fairness.

True

T/F: The Children's Advertising Review Unit (CARU) was set up to evaluate advertising directed at children under 12 years old.

True

T/F: The most important government body for adjudicating whether advertising claims are false or deceptive is the Federal Communications Commission (FCC).

False

T/F: Legislation requires commercial operators of websites to obtain verifiable parental consent before collecting or disclosing personal information about children under 13 years old.

True

T/F: Consumers have the right to take on false or deceptive advertising directly, either individually or via class-action lawsuits.

True

T/F: In 2006, The National Advertising Division (NAD) ruled that Gorilla Glue's statement that it was "the toughest glue on the planet" was puffery.

False