Tamu Mgmt 209 Swim - Ch 12

Front 1

Deceit

Back 1

The common law of torts also provides limited protection to consumers from false advertising.
The tort is of little value because it is difficult for consumers to prove all of the elements which are necessary to win their cases.

Front 2

Lanham Trademark Act

Back 2

If use false description or representation, then liable

Front 3

Federal Trade Commission

Back 3

Has the power to enact and enforce rules designed to prevent unfair and deceptive trade practices

Front 4

Consent Decree

Back 4

a contract that involves redress for injured consumers, payment of penalties, and prohibition of certain practices

Front 5

Cease and Desist Order

Back 5

an order from the ALJ stating that the advertisement has indeed been found to be deceptive

Front 6

Advisory Opinion

Back 6

Tells whether a proposed advertisement will meet FTC standards

Front 7

Trade Regulation Rules

Back 7

Aimed at governing business practices in specific industries, such as used car dealers, telemarketers, or funeral homes.
The FTC often utilizes this approach in industries where history suggests the probability of unfair or deceptive acts by a business is high or where consumers are particularly vulnerable if such practices occur.

Front 8

FTC Guides

Back 8

Explain how the FTC interprets and enforces its advertising regulations

Front 9

Affirmative Disclosure Order

Back 9

Requires an advertiser to disclose all relevant information about a product, both positive and negative

Front 10

Corrective Advertising

Back 10

A FTC remedy that requires the affirmative disclosure by the defendant that past advertising claims were misleading

Front 11

Deceptive Price Advertising

Back 11

Competing stores advertise different price for some product
violations occur if seller attempts to make price look more attractive than it really is

Front 12

FTC Improvements Act of 1980

Back 12

Ordered FTC to focus its energies on deceptive advertising and not on unfair advertising

Front 13

Deceptive

Back 13

A representation, omission, or practice that is likely to mislead a reasonable consumer and result in material harm to the consumer

Front 14

Unfair Advertising

Back 14

Unfair if causes or is likely to cause substantial injury, is not outweighed by countervailing benefits to consumers or competition, or injury must be one that consumer could not have reasonably avoided

Front 15

Bait and Switch

Back 15

Bait - advertise product at very low price to get customer in the store

Switch - advertiser refuses to sell at the low price and instead tries to get customer to purchase a higher priced substitute product

Front 16

Lanham Trademark Act of 1946

Back 16

If use false description or representation, then liable