CAS Advertising Ethics & Regulations 1

Question 1

Which federal agency has primary authority to regulate deceptive advertising practices in the United States?

Accepted Answer

Federal Trade Commission (FTC)

Answer

The FTC enforces truth-in-advertising laws and takes action against deceptive or unfair business practices in advertising.

Question 2

Under FTC guidelines, when a celebrity endorses a product they have a financial relationship with, what is required?

Accepted Answer

The financial relationship must be clearly disclosed

Answer

FTC Endorsement Guides require clear and conspicuous disclosure of material connections between endorsers and advertisers.

Question 3

What is the primary ethical concern with 'puffery' in advertising?

Accepted Answer

It uses exaggerated subjective claims that cannot be proven

Answer

Puffery involves vague, subjective boasts (e.g., 'the best pizza in the world') that are not considered deceptive because no reasonable consumer takes them as literal facts.

Question 4

Which self-regulatory body in the U.S. advertising industry reviews national advertising claims for truthfulness and accuracy?

Accepted Answer

National Advertising Division (NAD)

Answer

The NAD, part of BBB National Programs, is the primary industry self-regulatory body that reviews national advertising for truthfulness and accuracy.

Question 5

What does the Children's Online Privacy Protection Act (COPPA) primarily restrict in advertising?

Accepted Answer

Collecting personal data from children under 13 without parental consent

Answer

COPPA prohibits collecting personal information from children under 13 without verifiable parental consent, directly impacting targeted digital advertising to children.

(CAS) Certified Advertising Specialist Practice Test

(CAS) Certified Advertising Specialist Practice Test

CAS Advertising Ethics & Regulations 1