BUISENESS MANAGEMENT
ADVERTISING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true.
Detailed explanation-2: -The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.
Detailed explanation-3: -The Federal Trade Commission works to prevent fraudulent, deceptive, and unfair business practices. They also provide information to help consumers spot, stop, and avoid scams and fraud.
Detailed explanation-4: -Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based. For some specialized products or services, additional rules may apply.
Detailed explanation-5: -According to the FTC’s Deception Policy Statement, an ad is deceptive if it contains a statement-or omits information-that: Is likely to mislead consumers acting reasonably under the circumstances; and. Is “material”-that is, important to a consumer’s decision to buy or use the product.