Advertising Ethics & Regulations Flashcards
7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advertising Ethics & Regulations flashcards as text
What is 'astroturfing' in the context of advertising ethics?
Answer: Creating fake grassroots consumer support or reviews for a brand
Astroturfing involves creating the false impression of organic grassroots consumer support, such as fake reviews or staged community movements, which is deceptive and violates FTC guidelines.
Which FTC rule specifically governs the use of testimonials and endorsements in advertising?
Answer: 16 CFR Part 255 — Guides Concerning Use of Endorsements and Testimonials
16 CFR Part 255 provides the FTC's guidelines on how testimonials and endorsements must reflect honest opinions, be substantiated, and disclose material connections.
When advertising prescription drugs directly to consumers (DTCA) in the U.S., advertisers must comply with regulations from which agency?
Answer: Food and Drug Administration (FDA)
The FDA regulates prescription drug advertising to consumers, requiring fair balance between benefits and risks, and prohibiting false or misleading claims about drug efficacy or safety.
What is the 'reasonable consumer' standard used in FTC deception analysis?
Answer: A typical member of the audience targeted by the ad who might be misled
The FTC evaluates deception based on how a typical, reasonable consumer in the target audience would interpret the ad—not the most sophisticated or least sophisticated consumer.
The AARP Code of Advertising Ethics and similar industry codes primarily serve what function?
Answer: They establish voluntary self-regulatory standards to guide ethical advertising practice
Industry codes of ethics are voluntary self-regulatory frameworks that set standards for responsible advertising, complementing but not replacing government regulation.
What is 'bait-and-switch' advertising, and why is it regulated?
Answer: Advertising a product at a low price with no intention to sell it, then steering customers to a pricier alternative
Bait-and-switch involves advertising a product at an attractive price to lure consumers, then discouraging purchase of that item to sell a more expensive alternative—this is deceptive and violates FTC rules.
Under the CAN-SPAM Act, which of the following is a requirement for commercial email advertising?
Answer: Emails must include a clear opt-out mechanism that is honored within 10 business days
CAN-SPAM requires commercial emails to include a functioning opt-out mechanism, and senders must honor opt-out requests within 10 business days of receipt.