CAS Advertising Ethics & Regulations 2

Question 1

What is 'greenwashing' in the context of advertising ethics?

Accepted Answer

Making misleading environmental claims to appear eco-friendly

Answer

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?

Accepted Answer

Making disclosures clear and conspicuous in online and mobile ads

Answer

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?

Accepted Answer

It causes substantial consumer injury that is not outweighed by benefits and cannot be avoided by consumers

Answer

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?

Accepted Answer

Ofcom and CAP

Answer

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?

Accepted Answer

Ensuring all claims are accurate and not designed to deceive consumers

Answer

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.

(CAS) Certified Advertising Specialist Practice Test

(CAS) Certified Advertising Specialist Practice Test

CAS Advertising Ethics & Regulations 2