ADPR 3100 (UGA/Evans) Test #3 UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
The claim that Listerine could cure colds was deemed... deceptive/illegal
Which company in 1975 were forced by the FTC to spend Listerine
$10 million on corrective advertising that read, "Contrary
to prior advertising, _________ will not help prevent colds
or sore throats or lessen their severity."
What was a campaign by Listerine in 2005 that caught the "Just as good as flossing" claim
eye of the FTC?
Substantiation What is measurable or can be proven
Claims have to be.... substantiated/backed up (Nissan example)
Deception is to ________ as Puffery is to ________ illegal, legal
The claims made by ____ may be false, but they are not puffery
really lies because no one can disprove them & no one
can prove them either.
Deception is_________________ while Puffery is not legally actionable
_________ _______________
Material = impactful to behaviors, attitudes, and beliefs
What year was the Federal Trade Commission (FTC) 1914
created?
Why was the Federal Trade Commission (FTC) created? to prevent unfair competition and to monitor & defer false, fraudulent, misleading,
or deceptive advertising
What is the FTC three part test used to determine? Evaluates deceptive or untruthful advertising
FTC Three Part Test (1983) 1. There must be representation, omission, or practice that is likely to mislead the
consumer
2. The act or practice must be evaluated from the perspective of a reasonable
consumer
3. The representation, omission, or practice must be material--- this is likely to
affect a consumer's choice or use of a product or service
, Product Placement is a form of... Artistic Expression (bc of a lack of claims)
Artistic Expression has what level of constitutional Highest level of free speech
protection?
How does the FTC become aware of deceptive From sources such as the FTC staff, NAD, & CARU (for kids)
practices?
Order of constitutional protection for speech (highest to Artistic Expression, Political Speech, Commercial Speech, Corporate Speech, &
lowest) Slander/Hate Speech
Consent Decree a document that does not admit to deception, yet acknowledges that the
advertiser will stop running the sanctioned ad
What happens if the advertiser doesn't sign a consent 1. The FTC has the power to issue a "cease and desist" order
decree, breaks it, or continues to run the ad? 2. Mandate for advertiser to start running corrective advertisements
3. Case can go to federal court where advertiser may have to pay consumers
back
Cease and Desist Order $10,000 a day fine if an advertiser do not sign the consent decree
National Advertising Division (NAD) main group that receives, evaluates, and acts on complaints from the public, from
agencies and other business concerns, and from internal staff members
CARU child-directed advertising complaints or issues
National Advertising Review Board (NARB) 70 person panel of professionals made up of 40 advertiser reps, 20 agency reps,
and 10 public reps. They evaluate advertiser appeals the NAD or CARU cannot
resolve
December 21, 2015 FTC issued new guidelines for businesses using native
How to make native advertising disclosures clear and 1. Proximity/Placement
prominent? 2. Prominence
3. Clarity of Meaning
Sponsored Links/Recommended Widgets/Content - Highly targeted placements
Discovery Platforms - Use proprietary data (cookies/browser history)
- Helps advertisers generate awareness, engagement, or conversations
Native Advertising Articles (Sponsored Content/Article - Articles resemble the format of original content
Style Native Ads) - Often include featured brands/products
How to tell whether an article includes native Sole distinguishing characteristic is disclosure statement that tells you its
advertising? advertising
What will make up 60% of all display spending in the US? Native Advertising
ANSWERS
The claim that Listerine could cure colds was deemed... deceptive/illegal
Which company in 1975 were forced by the FTC to spend Listerine
$10 million on corrective advertising that read, "Contrary
to prior advertising, _________ will not help prevent colds
or sore throats or lessen their severity."
What was a campaign by Listerine in 2005 that caught the "Just as good as flossing" claim
eye of the FTC?
Substantiation What is measurable or can be proven
Claims have to be.... substantiated/backed up (Nissan example)
Deception is to ________ as Puffery is to ________ illegal, legal
The claims made by ____ may be false, but they are not puffery
really lies because no one can disprove them & no one
can prove them either.
Deception is_________________ while Puffery is not legally actionable
_________ _______________
Material = impactful to behaviors, attitudes, and beliefs
What year was the Federal Trade Commission (FTC) 1914
created?
Why was the Federal Trade Commission (FTC) created? to prevent unfair competition and to monitor & defer false, fraudulent, misleading,
or deceptive advertising
What is the FTC three part test used to determine? Evaluates deceptive or untruthful advertising
FTC Three Part Test (1983) 1. There must be representation, omission, or practice that is likely to mislead the
consumer
2. The act or practice must be evaluated from the perspective of a reasonable
consumer
3. The representation, omission, or practice must be material--- this is likely to
affect a consumer's choice or use of a product or service
, Product Placement is a form of... Artistic Expression (bc of a lack of claims)
Artistic Expression has what level of constitutional Highest level of free speech
protection?
How does the FTC become aware of deceptive From sources such as the FTC staff, NAD, & CARU (for kids)
practices?
Order of constitutional protection for speech (highest to Artistic Expression, Political Speech, Commercial Speech, Corporate Speech, &
lowest) Slander/Hate Speech
Consent Decree a document that does not admit to deception, yet acknowledges that the
advertiser will stop running the sanctioned ad
What happens if the advertiser doesn't sign a consent 1. The FTC has the power to issue a "cease and desist" order
decree, breaks it, or continues to run the ad? 2. Mandate for advertiser to start running corrective advertisements
3. Case can go to federal court where advertiser may have to pay consumers
back
Cease and Desist Order $10,000 a day fine if an advertiser do not sign the consent decree
National Advertising Division (NAD) main group that receives, evaluates, and acts on complaints from the public, from
agencies and other business concerns, and from internal staff members
CARU child-directed advertising complaints or issues
National Advertising Review Board (NARB) 70 person panel of professionals made up of 40 advertiser reps, 20 agency reps,
and 10 public reps. They evaluate advertiser appeals the NAD or CARU cannot
resolve
December 21, 2015 FTC issued new guidelines for businesses using native
How to make native advertising disclosures clear and 1. Proximity/Placement
prominent? 2. Prominence
3. Clarity of Meaning
Sponsored Links/Recommended Widgets/Content - Highly targeted placements
Discovery Platforms - Use proprietary data (cookies/browser history)
- Helps advertisers generate awareness, engagement, or conversations
Native Advertising Articles (Sponsored Content/Article - Articles resemble the format of original content
Style Native Ads) - Often include featured brands/products
How to tell whether an article includes native Sole distinguishing characteristic is disclosure statement that tells you its
advertising? advertising
What will make up 60% of all display spending in the US? Native Advertising
