6. Which federal government entity regulates deceptive or unfair advertising?

a. The Federal Bureau of Investigation.

b. The Federal Trade Commission.

c. The Department of Justice.

d. The Department of Commerce.

e. The Federal Communication Commission.

7. The FTC Act requires that advertising meet three requirements. Which of the following is NOT one of the three requirements for advertising?

a. The advertising is truthful and not misleading.

b. The advertising treats all competitors equally.

c. The advertising is substantiated.

d. The advertising is fair.

8. Whose perspective does the FTC use to evaluate potentially deceptive advertising?

a. Average adult advertisement viewer.

b. Sophisticated advertisement viewer.

c. Reasonable consumer.

d. Most susceptible advertisement viewer.

9. Which of the following statements is correct?

a. The advertiser must disclose whatever qualifying information is necessary for implied claims, but no disclosure is required for express claims.

b. The advertiser must disclose whatever qualifying information is necessary for express claims, but no disclosure is required for implied claims.

c. The advertiser must disclose whatever qualifying information is necessary for both implied and express claims.

d. There is no disclosure required for either type of claim.

10. Manny Marketer writes a new ad campaign touting the health benefits of smoking cigarettes. His client, a tobacco company, loves it, and they decide to run the advertisement on a cable channel. Manny, however, doesn’t have any factual information on which to base his claims. The tobacco company doesn’t care, and informs Manny that it will be “no problem” to get a scientific report listing the many health benefits of cigarettes and smoking. Manny is delighted and runs the ads. Later, the FTC sues Manny for making false and misleading advertisements. By this time, however, Manny has several scientific reports in hand backing up his advertisements. Who wins, and why?

a. Manny, because he has the reports to back up his advertisements.

b. Manny, because the FTC can’t sue the companies that produce the ads, only the advertisers.

c. The FTC, because Manny’s scientific data was supplied by the advertiser.

d. The FTC, because there has to be information to support ads at the time they are run.