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Advertising Law Basics
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Celebrities in Advertising
Their participation in ads must be authentic and they should actually use or endorse the product, lest it be misleading.
Comparative Advertising
A marketing strategy where a product's values are compared directly with a competitor's. It must not be misleading and should compare objectively measurable features.
Substantiation
Advertisers must have evidence supporting their claims before an ad is published; for certain types of claims, the evidence must be competent and reliable.
Online Behavioral Advertising
This involves tracking consumer activities online to target more effective advertisements. It must not violate privacy laws or regulations.
Misleading Illustrations
Visual aids in advertisements that create false impressions or misrepresent the product or service are prohibited.
Health and Safety Claims
Claims regarding the health and safety benefits of a product must be supported by scientific evidence and must not be misleading.
Intellectual Property in Advertising
Using copyrighted material or trademarks within an advertisement must be done legally to avoid infringement.
Comparability in Advertising
When claiming a product is better or superior, the basis of comparison must be clearly stated and be objectively verifiable.
Federal Trade Commission (FTC)
A federal agency that enforces consumer protection laws, including laws against deceptive advertising.
Direct Marketing
Direct marketing, including telemarketing, email, and texting, must comply with laws like the CAN-SPAM Act and Do Not Call regulations.
Truth in Advertising
Federal and state laws require advertisements to be truthful, not misleading, and, when appropriate, backed by scientific evidence.
Price Claims
Advertisements must not mislead consumers about the price of a product or service, including any hidden fees or conditions.
Endorsements and Testimonials
Must reflect the honest opinions or experiences of the endorser and should not include deceptive or unsubstantiated claims.
Puffery
An advertising or promotional statement that is subjective rather than objective, which no reasonable person would take literally.
Bait-and-Switch Advertising
An illegal practice in which customers are lured by advertisements for a product or service at a low price but are then persuaded to buy a more expensive item.
Lanham Act
A federal statute that provides a system of trademark registration and protects the owner of a federally registered mark against the use of similar marks.
Decency in Advertising
Ads must not contain materials that are obscene, offensive, or inappropriate according to community standards.
Advertisements and Privacy
Advertisements must respect the privacy of individuals and comply with data protection and privacy laws.
Unsolicited Advertising (Spam)
Sending unsolicited advertisements via email (spam) is regulated by the CAN-SPAM Act, setting requirements for message content and offering opt-out mechanisms.
Advertising Disclosures
Information that must be provided in an ad to prevent it from being deceptive, i.e., small print details, conditions, or limitations.
Guarantees and Warranties
Any guarantees or warranties offered must be clearly defined and the terms must be made available to consumers.
Advertising to Children
Special rules apply to ads directed at children, including not exploiting their inexperience, credulity, or sense of loyalty.
Sales Promotions
Legal requirements govern sales promotions to ensure that any conditions, limitations or expiration dates are clearly communicated to consumers.
Environmental Marketing Claims
Claims about a product's environmental benefits must be truthful and substantiated. 'Greenwashing' could lead to penalties.
Fine Print
Any important limitations or qualifications to an offer that are only disclosed in the fine print can be deemed deceptive if not made evidently clear to the consumer.
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