ADPR 3100 Test 3 Evans UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS
deception when a brand claims their product can do something it can't
ex: Listerine claiming they could cure colds
Federal Trade Commission (FTC) created in 1914 to prevent unfair competition--and monitor/deter false, fraudulent,
misleading, or deceptive advertising
FTC 3-part test to determine if an ad was deceptive 1. must be a representation, omission, or practice that is likely to mislead the
(1983) consumer
2. must be evaluated from the perspective of a reasonable consumer
3. the representation, omission, or practice must be material (affect consumer
decision)
substantiation what is measurable or can be proven (claims must be backed up)
hyperbole not meant to be the truth, meant to be entertaining/outlandish
VW/Audi scandal claimed their diesel cars were environmentally clean but rigged the emissions test
unsubstaintiated and deceptive (most notable in US); FTC order VW to pay $4
billion to customers
commercial speech proposed transaction between buyer and seller (Supreme Court definition)
product games are not considered commercial speech (not regulated)
deception when a brand claims their product can do something it can't
ex: Listerine claiming they could cure colds
Federal Trade Commission (FTC) created in 1914 to prevent unfair competition--and monitor/deter false, fraudulent,
misleading, or deceptive advertising
FTC 3-part test to determine if an ad was deceptive 1. must be a representation, omission, or practice that is likely to mislead the
(1983) consumer
2. must be evaluated from the perspective of a reasonable consumer
3. the representation, omission, or practice must be material (affect consumer
decision)
substantiation what is measurable or can be proven (claims must be backed up)
hyperbole not meant to be the truth, meant to be entertaining/outlandish
VW/Audi scandal claimed their diesel cars were environmentally clean but rigged the emissions test
unsubstaintiated and deceptive (most notable in US); FTC order VW to pay $4
billion to customers
commercial speech proposed transaction between buyer and seller (Supreme Court definition)
product games are not considered commercial speech (not regulated)
