Com 256- Exam 3 Lecture 2

Front 1

1865-1900: Era of Exaggerated Claims

Back 1

Caveat emptor, “let the buyer beware”
Buyer is responsible for detecting corruption

Front 2

1900-1965: Era of Public Awareness

Back 2

“let the seller beware”
Birth of business/advertising regulation
seller responsible for corruption
--The progressive movement was an effort to cure many of the ills of American society that had developed during the great spurt of industrial growth in the last quarter of the 19th century.

Front 3

1965-present: Era of Social Responsibility

Back 3

Increased industry oversight
Regulation should be more aggressive in companies

Front 4

Progressives had three major goals:

Back 4

*The desire to remove corruption and undue influence from government through the taming of bosses and political machines;
*the effort to include more people more directly in the political process;
*the conviction that government must play a role to solve social problems and establish fairness in economic matters.

Front 5

Most of the major regulatory/advertising legislation was crafted during the _________

Back 5

Era of Public Awareness

Front 6

Pure Food and Drug Act (1906)
aka, the Federal Food, Drug, and Cosmetics Act

Back 6

Established the Food and Drug Administration
Forbids the manufacture, sale, or transport of adulterated or fraudulently labeled foods and drugs
Focuses on labels, not other forms of advertising

Front 7

FTC v. Winsted Hosiery Company (1922)

Back 7

Supreme Court ruled that false advertising was an unfair trade practice.

Front 8

Wheeler-Lea Amendment (1938)

Back 8

Places advertising of foods and drugs under jurisdiction of FTC
Broadens FTC duties from protecting businesses to protecting consumers as well

Front 9

FTC Improvement Act (1980)

Back 9

Allows the House of Representatives and Senate to jointly veto FTC regulation rules
Severely weakens FTC
Some have argued that the 1980s marked the beginning of deregulation

Front 10

Telemarketing Act (1994)

Back 10

Specifies that telemarketers may not call anyone who requests not to be contacted
Formation of the Do Not Call list

Front 11

Food and Drug Administration

Back 11

Established by Pure Food and Drug Act (1906). The FDA is the regulatory division of the Department of Health and Human Services

Oversees package labeling, ingredient listing, and advertising for food and drugs

Focuses heavily on pharmaceutical products

Front 12

Substantiation

Back 12

Advertisers must be able to support their claims and have evidence in hand