Question 1

Which of the following agencies is responsible for tax collection for the liquor industry?

Accepted Answer

A)  the Federal Commission for Substance Abuse Control
B)  the Food and Drug Administration
C)  the Bureau of Alcohol, Tobacco, Firearms and Explosives
D)  the Federal Trade Commission
E)  the National Association of Attorneys GeneralF) D) and E)
G) B) and D)

Question 2

Advertisers are often supportive of voluntary self-regulation because

Accepted Answer

A)  self-regulation is viewed as a way of limiting government interference in advertising.
B)  all clients and agencies are affected by voluntary self-regulation.
C)  self-regulation does not require interaction between an agency and a client.
D)  self-regulation results in even more stringent regulations than what state and federal agencies want.
E)  it is simple and less time consuming.F) A) and D)
G) A) and C)

Question 3

Better Business Bureaus (BBBs)  provide effective control over advertising practices at the _____ level.

Accepted Answer

A)  local
B)  national
C)  global
D)  industry-wide
E)  internationalF) B) and C)
G) All of the above

Question 4

Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of drugs.

Accepted Answer

A) True 
 B)False

Question 5

The key elements in the Federal Trade Commission's (FTC's)  definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

Accepted Answer

A)  materiality.
B)  selective exposure.
C)  selective retention.
D)  puffery.
E)  peripheral importance. The third key element to the FTC's definition of deception is materiality.According to the FTC a "material" misrepresentation or practice is one that is likely to affect a consumer's choice or conduct with regard to a product or service.F) B) and C)
G) B) and D)

Question 6

The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising.

Accepted Answer

A)  Lanham Amendment
B)  Sherman and Clayton Antitrust Act
C)  Wheeler-Lea Amendment
D)  Food and Drug Administration Act
E)  Consumer Protection ActF) D) and E)
G) All of the above

Question 7

The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are

Accepted Answer

A)  advertisers, advertising review boards, and the cable operators.
B)  creative boutiques, copywriters, and consumer panels.
C)  consumer panels, advertisers, and agencies.
D)  advertisers, advertising agencies, and the media.
E)  advertisers, the government, and the television networks.F) A) and B)
G) A) and E)

Question 8

Which of the following divisions of the Federal Trade Commission (FTC)  deals with antitrust and consumer protection investigations?

Accepted Answer

A)  the Bureau of Economics
B)  the Bureau of Compliance
C)  the National Advertising Review Board
D)  the Bureau of Reconstruction
E)  the Trade Regulation Bureau The Bureau of Economics helps the FTC evaluate the impact of its actions and provides economic analysis and support to antitrust and consumer protection investigations and rule makings.F) A) and B)
G) C) and E)

Question 9

The _____ is a self-regulatory program implemented by the Advertising Self-Regulatory Council (ASRC)  that regulates online behavioral advertising (OBA)  across the Internet.

Accepted Answer

A)  Internet Advertising Review Board
B)  Internet Retailing Self-Regulation Program
C)  Council of Better Business Bureaus
D)  Internet-Based Advertising Accountability Program
E)  Information Technology ActF) A) and B)
G) B) and C)

Question 10

Which of the following statements is TRUE of the National Advertising Division (NAD) ?

Accepted Answer

A)  The NAD's advertising monitoring program only reviews complaints from local Better Business Bureaus.
B)  Advertisers that disagree with the NAD's findings have an automatic right to appeal the NAD's decision to the National Advertising Review Board.
C)  The NAD has no authority to direct an advertiser to stop running an ad in case the required substantiating evidence does not support the advertiser's claim.
D)  Lawyers at the NAD usually seek help from local advertising agencies to find misleading advertisements.
E)  The NAD does not deal with complaints that come from marketers who are threatened by comparative advertising.F) A) and D)
G) A) and B)

Exam 20: Regulation of Advertising and Promotion

The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising.

Correct Answer
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The key elements in the Federal Trade Commission's (FTC's) definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

Correct Answer
verified

Advertisers are often supportive of voluntary self-regulation because

Correct Answer
verified

Which of the following divisions of the Federal Trade Commission (FTC) deals with antitrust and consumer protection investigations?

Correct Answer
verified

Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of drugs.

Correct Answer
verified

The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are

Correct Answer
verified

Better Business Bureaus (BBBs) provide effective control over advertising practices at the _____ level.

Correct Answer
verified

Which of the following agencies is responsible for tax collection for the liquor industry?

Correct Answer
verified

The _____ is a self-regulatory program implemented by the Advertising Self-Regulatory Council (ASRC) that regulates online behavioral advertising (OBA) across the Internet.

Correct Answer
verified

Which of the following statements is TRUE of the National Advertising Division (NAD) ?

Correct Answer
verified

Exam 20: Regulation of Advertising and Promotion

The _____ empowered the Federal Trade Commission to regulate unfair or deceptive practices in commerce including those in advertising.

Correct AnswerverifiedShow Answer

The key elements in the Federal Trade Commission's (FTC's) definition of deception are that the representation, omission, or practice must be likely to mislead the reasonable consumer and that it must have

Correct AnswerverifiedShow Answer

Advertisers are often supportive of voluntary self-regulation because

Correct AnswerverifiedShow Answer

Which of the following divisions of the Federal Trade Commission (FTC) deals with antitrust and consumer protection investigations?

Correct AnswerverifiedShow Answer

Legislation is being considered that would either ban or impose major restrictions on direct-to-consumer advertising of drugs.

Correct AnswerverifiedShow Answer

The three major participants in the advertising process that work individually and collectively to encourage truthful, ethical, and responsible advertising are

Correct AnswerverifiedShow Answer

Better Business Bureaus (BBBs) provide effective control over advertising practices at the _____ level.

Correct AnswerverifiedShow Answer

Which of the following agencies is responsible for tax collection for the liquor industry?

Correct AnswerverifiedShow Answer

The _____ is a self-regulatory program implemented by the Advertising Self-Regulatory Council (ASRC) that regulates online behavioral advertising (OBA) across the Internet.

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE of the National Advertising Division (NAD) ?

Correct AnswerverifiedShow Answer

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