ADPR 3100 Exam 3 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS
Substantiation What can be measurable or proven
Deception vs Puffery Deception is actionable.
- illegal
Puffery is not actionable
- legal
- statements can neither be proven or disproven
Deception Lie likely to mislead.
A consumer acting reasonably.
Must be "material"
example. Duracell "lasts even longer" (cost more and did not last longer than
others)
Puffery Exaggeration or overstatement.
Expressed in broad, vague language.
Not An advertisers opinion of a product that is considered a legitimate expression
of biased opinion.
Not misdescriptions or false representations of specific characteristics.
FTC Federal Trade Commission created in 1914 to prevent unfair competition and
monitor and deter false, fraudulent, misleading, or deceptive advertising.
FTC 3 part test 1) There must be a 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- that is, likely to
affect a consumer's choice or use of a product or service.
Material Impactful to behaviors.
(attitudes and thoughts)
What will the FTC make you do if you make deceptive -Stop/Change ads
ads? - "cease and desist" $10,000/a day
-Publicize corrective -ads
-Pay fines
How does the FTC become aware of deceptive Consumers, other advertisers, or FTC staff.
practices?
, Consent Decree What the FTC will ask a deceptive advertiser to sign. A document that does not
admit to deception, yet acknowledges that the advertiser will stop running the
sanctioned ad.
What happens if an Advertiser doesn't sign the Decent FTC has power to:
Decree, breaks it, or continues running the ad?
-issue a "CEASE AND DESIST" ORDER- $10,000 a day until the sign decree.
-Mandate for advertiser to run CORRECTIVE ADVERTISEMENTS.
-If agreement is not met with the FTC, the case can go to FEDERAL COURT- asked
to pay consumers back
Rank speech in order of constitutional protection (highest 1)Artistic speech
to lowest) 2)Political speech
3)Commercial Speech
4)Corporate Speech
5)Slander/Hate Speech
Are Product Placements deceptive or misleading? No, it is considered artistic expression and gets highest level of free speech
protection in the U.S.
Social Marketing The process of using marketing techniques to persuade consumers to adopt the
behaviors advocated by a social cause. Ex: Stopping smoking, obesity prevention,
recycling.
What does a for-profit partner want to gain from teaming 1) Associate its product with a perceived social good, boosting its appeal to a
up with a non-profit organization? market segment that shares that perception.
2) Increase a broader market segment's perceptions of the enterprise as socially
engaged and responsible.
3) Derive bottom line benefits from increasing market share in the targeted
segment.
What is the difference between social marketing and It lies in the message.
socially responsible advertising? -Social marketing is encouraging people to do better for a cause. Ex: Telling
people to recycle.
-Socially responsible marketing is selling a product that is good for a cause. Ex:
Product made with 100% recycled parts
Stakeholders recognized by companies that employ -Employees
socially responsible advertising: -Stockholders
-Communities (where the product is sold)
-Consumers
In what ways can advertisers demonstrate they are 1) Social issues linked with products. (Tom's Shoes)
socially responsible? 2) Social issues linked with corporations. (Subaru and environment)
3) Corporate donations to social issues.
Substantiation What can be measurable or proven
Deception vs Puffery Deception is actionable.
- illegal
Puffery is not actionable
- legal
- statements can neither be proven or disproven
Deception Lie likely to mislead.
A consumer acting reasonably.
Must be "material"
example. Duracell "lasts even longer" (cost more and did not last longer than
others)
Puffery Exaggeration or overstatement.
Expressed in broad, vague language.
Not An advertisers opinion of a product that is considered a legitimate expression
of biased opinion.
Not misdescriptions or false representations of specific characteristics.
FTC Federal Trade Commission created in 1914 to prevent unfair competition and
monitor and deter false, fraudulent, misleading, or deceptive advertising.
FTC 3 part test 1) There must be a 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- that is, likely to
affect a consumer's choice or use of a product or service.
Material Impactful to behaviors.
(attitudes and thoughts)
What will the FTC make you do if you make deceptive -Stop/Change ads
ads? - "cease and desist" $10,000/a day
-Publicize corrective -ads
-Pay fines
How does the FTC become aware of deceptive Consumers, other advertisers, or FTC staff.
practices?
, Consent Decree What the FTC will ask a deceptive advertiser to sign. A document that does not
admit to deception, yet acknowledges that the advertiser will stop running the
sanctioned ad.
What happens if an Advertiser doesn't sign the Decent FTC has power to:
Decree, breaks it, or continues running the ad?
-issue a "CEASE AND DESIST" ORDER- $10,000 a day until the sign decree.
-Mandate for advertiser to run CORRECTIVE ADVERTISEMENTS.
-If agreement is not met with the FTC, the case can go to FEDERAL COURT- asked
to pay consumers back
Rank speech in order of constitutional protection (highest 1)Artistic speech
to lowest) 2)Political speech
3)Commercial Speech
4)Corporate Speech
5)Slander/Hate Speech
Are Product Placements deceptive or misleading? No, it is considered artistic expression and gets highest level of free speech
protection in the U.S.
Social Marketing The process of using marketing techniques to persuade consumers to adopt the
behaviors advocated by a social cause. Ex: Stopping smoking, obesity prevention,
recycling.
What does a for-profit partner want to gain from teaming 1) Associate its product with a perceived social good, boosting its appeal to a
up with a non-profit organization? market segment that shares that perception.
2) Increase a broader market segment's perceptions of the enterprise as socially
engaged and responsible.
3) Derive bottom line benefits from increasing market share in the targeted
segment.
What is the difference between social marketing and It lies in the message.
socially responsible advertising? -Social marketing is encouraging people to do better for a cause. Ex: Telling
people to recycle.
-Socially responsible marketing is selling a product that is good for a cause. Ex:
Product made with 100% recycled parts
Stakeholders recognized by companies that employ -Employees
socially responsible advertising: -Stockholders
-Communities (where the product is sold)
-Consumers
In what ways can advertisers demonstrate they are 1) Social issues linked with products. (Tom's Shoes)
socially responsible? 2) Social issues linked with corporations. (Subaru and environment)
3) Corporate donations to social issues.
