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

Astroturfing involves creating the false impression of organic grassroots consumer support, such as fake reviews or staged community movements, which is deceptive and violates FTC guidelines.

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

16 CFR Part 255 provides the FTC's guidelines on how testimonials and endorsements must reflect honest opinions, be substantiated, and disclose material connections.

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

The FDA regulates prescription drug advertising to consumers, requiring fair balance between benefits and risks, and prohibiting false or misleading claims about drug efficacy or safety.

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

The FTC evaluates deception based on how a typical, reasonable consumer in the target audience would interpret the ad—not the most sophisticated or least sophisticated consumer.

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

Industry codes of ethics are voluntary self-regulatory frameworks that set standards for responsible advertising, complementing but not replacing government regulation.

(CAS) Certified Advertising Specialist Practice Test

(CAS) Certified Advertising Specialist Practice Test

CAS Advertising Ethics & Regulations 3