CAS Advertising Ethics & Regulations 3

Question 1

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

Accepted Answer

Creating fake grassroots consumer support or reviews for a brand

Answer

Using artificial grass imagery in outdoor advertising

Answer

Placing ads in community parks and public spaces

Answer

Running unsolicited email campaigns to local audiences

Question 2

Which FTC rule specifically governs the use of testimonials and endorsements in advertising?

Accepted Answer

16 CFR Part 255 — Guides Concerning Use of Endorsements and Testimonials

Answer

The Magnuson-Moss Warranty Act

Answer

The CAN-SPAM Act

Answer

The Telephone Consumer Protection Act (TCPA)

Question 3

When advertising prescription drugs directly to consumers (DTCA) in the U.S., advertisers must comply with regulations from which agency?

Accepted Answer

Food and Drug Administration (FDA)

Answer

Federal Trade Commission (FTC)

Answer

Centers for Medicare & Medicaid Services (CMS)

Answer

Department of Health and Human Services (HHS)

Question 4

What is the 'reasonable consumer' standard used in FTC deception analysis?

Accepted Answer

A typical member of the audience targeted by the ad who might be misled

Answer

A consumer with a law degree who can identify technical deceptions

Answer

A consumer who reads every word of fine print in an advertisement

Answer

A panel of industry experts who evaluate ad accuracy

Question 5

The AARP Code of Advertising Ethics and similar industry codes primarily serve what function?

Accepted Answer

They establish voluntary self-regulatory standards to guide ethical advertising practice

Answer

They have the force of law and allow consumer lawsuits

Answer

They replace FTC oversight for member companies

Answer

They certify individual advertisers for government contracts

Question 6

What is 'bait-and-switch' advertising, and why is it regulated?

Accepted Answer

Advertising a product at a low price with no intention to sell it, then steering customers to a pricier alternative

Answer

Advertising a high price then offering a discount, creating false urgency

Answer

Switching ad creative after a campaign launches without client approval

Answer

Using competitor brand names in paid search ads to capture their traffic

Question 7

Under the CAN-SPAM Act, which of the following is a requirement for commercial email advertising?

Accepted Answer

Emails must include a clear opt-out mechanism that is honored within 10 business days

Answer

Emails must be sent only to recipients who have actively opted in

Answer

The subject line must contain the word 'Advertisement'

Answer

Commercial emails are prohibited on weekends and federal holidays