Understanding Deceptive Advertising and Consumer Protection: A Glossary, Quizzes of Banking Law and Practice

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TERM 1 Product Attributes DEFINITION 1 how a product will affect a consumer's purchase decision TERM 2 Conveyed Message DEFINITION 2 message that is being portrayed TERM 3 Deceptive Advertising DEFINITION 3 there is a representation, omission, or practice that is likely to mislead consumers acting reasonably under the circumstances and the representation, omission, act or practice is material TERM 4 Deceptiveness DEFINITION 4 has potential to deceive TERM 5 Deception DEFINITION 5 someone's already been deceived TERM 6 James Miller DEFINITION 6 served as chairmen of the Federal Trade Commission in 1981; tried to reduce regulations TERM 7 3 steps to consider DEFINITION 7 1) likely to mislead 2) consumers acting reasonably 3) materiality TERM 8 Mortermer Snerd DEFINITION 8 Reasonable Man - Ignorant Man Standardhe was a famous dummy, and even something that isn't real was protected by the FTC, and the companies were complaining that not all consumers are reasonable and they should only protect those who are reasonable TERM 9 Oxydol DEFINITION 9 Is a detergent that apparently had crystals in it to make it look blue, but it looks green instead. It wasn't important or trivial because the product still works TERM 10 Unfairness DEFINITION 10 immoral, unethical, oppressive, or unscrupulous conduct TERM 21 Puffery DEFINITION 21 exaggeration, truth or falsity cannot be precisely determined; options that are not believed to be facts which are not false TERM 22 Misdescription DEFINITION 22 FTC goes after a company when they use a name that could be misleading; when the name conveys something to consumer's and it doesn't match with the product attributes example - cashmora is a false word and fake description TERM 23 Mock-ups DEFINITION 23 FTC goes after a company when they use fake images or pictures for example - volvo's commercial showing how safe the car is by having monster trucks drive over it, but they had steal in the car which is not honest of that car or rapid shave (colgate) used fake sandpaper to prove it is really moisturized TERM 24 Opinions DEFINITION 24 hard to prove someone's view point wrong; considered puffery for example spring water saying they have the best water on earth TERM 25 Comparative Advertising DEFINITION 25 comparing your brand to another's; FTC encourages it because people provide more info, freedom of speech, and force companies to improve products; some companies don't because it can be bias, contains half truth, brands can lose credibility, causes confusion, and allows boostrapping - for example comparing mini coops to Porsche TERM 26 Remedies DEFINITION 26 FTC cannot punish but has alternatives (3) Cease and Desist Order, Affirmative disclosure, and corrective advertising TERM 27 Cease and Desist Order DEFINITION 27 letters that are sent to companies that have done illegal activity to have advertisers stop running ads of product or product line, subsidiaries, and successors, agency TERM 28 Affirmative Disclosure DEFINITION 28 when the first remedy is not enough, continuous disclosure or triggered disclosure which is to provide info on the negative effects of a product/service in an ad TERM 29 Corrective Advertising DEFINITION 29 correct the ad that the FTC finds deceptive; examples would be Yaz, Listerine's Mouthwash, Campbell's Soup TERM 30 Yaz Commercial DEFINITION 30 birth control lied saying it clears up pimples, FTC made them do corrective advertising; corrected it in a form people are less likely to pay attention to TERM 31 Listerine Mouthwash DEFINITION 31 lied saying it will clear up colds because it kills germs, and the FTC ordered for them to do corrective advertising in 1975 TERM 32 Campbell's Soup DEFINITION 32 photo of mock ups to make the soup look better; student led organization created the term SOUP which is Students Opposing Unfair Practices; they wrote a brief on Cease and Desist Order TERM 33 Consent Orders DEFINITION 33 Advertisers agree to to do what the FTC saids by signing a settlement after they get caught being deceitful. Typically businesses lose a lot money but it's negotiable, you can always argue FTC down; if you don't sign than you're more likely to go to court and face worse consequences TERM 34 Section 13b Preliminary Injunction DEFINITION 34 gives case to judge so they can stop ads before case is decided, it stops ad while FTC is filing a case; the judge might ask for consumer redress which is where the company needs to pay all the consumers who brought their product(s) back TERM 35 Rules & Regulations DEFINITION 35 applies to prices, testimonials, and false guarantees TERM 46 Gov't Regulation Disadvantages DEFINITION 46 "Laisez-Faire" w/o regulation; Oppressive (too much regulation), Ineffectual (may not cover every situation), Costly (someone should pay orgs like FTC), Rigid (don't take particular circumstances into account), Conflicting (balkanization), Weakly enforced (not enough manpower to regulate all media) TERM 47 Self - Regulation Benefits DEFINITION 47 faster, cheaper, complement law, can be more strict, greater reach, moral adhension, minimize frictions TERM 48 Self- Regulation Shortcomings DEFINITION 48 enforcement (peers cannot force you), self-serving, used to avoid laws, violation of anti-trust, under financed TERM 49 Ladies Home Journal DEFINITION 49 announced that it would no longer accept patent medicine advertisements because of deception in the industry TERM 50 Good Housekeeping DEFINITION 50 announced it would stand behind all products (ads) placed in magazine TERM 51 Lydia E. Pinkham's Vegetable Compound DEFINITION 51 she passed away but she's still used in ads TERM 52 Collier's Magazine DEFINITION 52 published a series of articles on patent medicine industries TERM 53 Trade Magazine of Advertising (Printer's Ink) DEFINITION 53 promoted its own code the Printer's ink statute; enforced as criminal law, encouraged states to adopt it TERM 54 (ASRC) Advertising Self-Regulatory Council DEFINITION 54 created with the Council of Better Business Bureau (BBB) which includes the (AAAA) American Association of Advertising Agencies who rep. agencies, (ANA) Association of National Advertisers who rep. advertisers, (AAF) American Advertising Federation who reps. people in ad industry TERM 55 (NAD) National Advertising Division DEFINITION 55 hears complaints and ask advertisers to make changes TERM 56 (NARB) National Advertising Review Board DEFINITION 56 they review the complaint from the NAD and decides if advertisers should appeal (gets complaint - form panel - hearing - notify media and FTC) TERM 57 Saatchi&Saatchi DEFINITION 57 advertising agency that only had two attorneys, but pushed most of the cases to lawyers of the opposing agency because the company had good self-restraint TERM 58 Media DEFINITION 58 have guidelines and standards for companies and agencies who want to run ads on their network like NBC, CBS, The Courrier Journal (has a book of standards) TERM 59 Bait Advertising DEFINITION 59 the initial intention is to sale the second product shown to consumer, the first product is used to get the consumer into the store TERM 60 Privacy DEFINITION 60 it's very limited because information is valuable in terms of money ; most online sites have cookies that's utilized to recognize your exact computer and once it understands your likes and dislikes they companies runs direct ads to you for example, google reads their users gmail accounts so people can advertise to you Facial recognition and social media is key to all secrets TERM 71 Kidvid DEFINITION 71 causes - distorted performances, price confusion, ignores nutrition, artificial demand, surrogate salesman, feel-good promises, program characters, potential harm, disillusion, cynicism, parent-child conflict, and manipulation TERM 72 Action for Children's Advertising DEFINITION 72 a movement created by housewives, they fought for restrictions on commercials aimed at children TERM 73 Cartoon "Heman" DEFINITION 73 30 minute commercial that seemed like a show that was selling a product; an example is Mickey Mouse play house and they advertise Mickey Mouse watches; they came up with the privacy protection act TERM 74 Disparagement DEFINITION 74 making a false statement that tarnishes people's businesses TERM 75 Defamation DEFINITION 75 any statement tarnishing someone's image