CAS Advertising Ethics & Regulations 2 — Questions and Answers
Question 1: What is 'greenwashing' in the context of advertising ethics?
- Using recycled materials in print ads
- Making misleading environmental claims to appear eco-friendly (Correct answer)
- Advertising products in environmentally sensitive regions
- Donating ad revenue to environmental causes
Correct answer: Making misleading environmental claims to appear eco-friendly
Greenwashing occurs when advertisers make false or exaggerated environmental claims to mislead consumers into thinking a product is more eco-friendly than it is.
Question 2: The FTC's '.com Disclosures' guidelines address which advertising challenge?
- Banner ad click-through fraud
- Making disclosures clear and conspicuous in online and mobile ads (Correct answer)
- Regulating pop-up advertisements
- Requiring consent for retargeting cookies
Correct answer: Making disclosures clear and conspicuous in online and mobile ads
The FTC's '.com Disclosures' guidance instructs advertisers how to make required disclosures clear and conspicuous in digital and mobile environments where space is limited.
Question 3: Under the FTC Act, an advertising practice is considered 'unfair' if it meets which standard?
- It offends community standards of decency
- It causes substantial consumer injury that is not outweighed by benefits and cannot be avoided by consumers (Correct answer)
- It results in competitor complaints filed within 90 days
- It involves subliminal messaging techniques
Correct answer: It causes substantial consumer injury that is not outweighed by benefits and cannot be avoided by consumers
The FTC's unfairness standard requires that the practice causes or is likely to cause substantial consumer injury, that the injury is not outweighed by countervailing benefits, and that consumers cannot reasonably avoid the injury.
Question 4: Which organization publishes the Advertising Standards Authority (ASA) codes for broadcast advertising in the United Kingdom, relevant to U.S. advertisers running global campaigns?
- Ofcom and CAP (Correct answer)
- FTC and NAD
- ARPP and ICC
- IAB and ESOMAR
Correct answer: Ofcom and CAP
In the UK, broadcast advertising is regulated by Ofcom while the Committee of Advertising Practice (CAP) writes the codes enforced by the ASA—important knowledge for global campaign compliance.
Question 5: What is the ethical principle of 'truthfulness' in advertising primarily concerned with?
- Ensuring ads meet minimum production quality standards
- Ensuring all claims are accurate and not designed to deceive consumers (Correct answer)
- Requiring ads to include disclaimers about side effects
- Prohibiting competitive advertising between rival brands
Correct answer: Ensuring all claims are accurate and not designed to deceive consumers
Truthfulness in advertising ethics means that all representations, whether explicit or implied, must accurately reflect reality and not create false impressions in the minds of consumers.
Question 6: Tobacco advertising is banned on which media channels under U.S. federal law?
- Print publications and outdoor billboards
- Television and radio broadcasts (Correct answer)
- Digital platforms and social media
- In-store point-of-sale displays
Correct answer: Television and radio broadcasts
The Public Health Cigarette Smoking Act (1970) banned cigarette advertising on television and radio; the Family Smoking Prevention and Tobacco Control Act extended FDA authority over tobacco marketing.
Question 7: What does 'native advertising' require from an ethics and regulation standpoint?
- It must appear only on the brand's owned platforms
- It must be clearly labeled so consumers recognize it as paid content (Correct answer)
- It can mimic editorial content without disclosure if it matches site style
- It requires FCC licensing before placement
Correct answer: It must be clearly labeled so consumers recognize it as paid content
FTC guidelines require that native advertising be clearly and conspicuously disclosed as paid advertising so consumers are not deceived into thinking they are reading independent editorial content.
CAS Advertising Ethics & Regulations 2
What is 'greenwashing' in the context of advertising ethics?