Video Ads and Commercial Regulatory Frameworks & Compliance 2 — Questions and Answers
Question 1: Under the FTC's revised endorsement guides, what must a social media influencer do when posting a sponsored video ad?
- Disclose the material connection clearly and conspicuously (Correct answer)
- Include the brand's full legal name in the video title
- Obtain a separate license from the FTC before posting
- Submit the video for FTC review 30 days in advance
Correct answer: Disclose the material connection clearly and conspicuously
The FTC requires that any material connection between an endorser and a brand be disclosed in a clear and conspicuous manner that viewers cannot miss.
Question 2: The Children's Online Privacy Protection Act (COPPA) affects video ads primarily by restricting:
- The volume level of audio in ads targeting children
- Behavioral targeting and data collection from children under 13 (Correct answer)
- The length of video ads shown on children's platforms
- The use of animated characters in commercial advertising
Correct answer: Behavioral targeting and data collection from children under 13
COPPA prohibits collecting personal information from children under 13 without verifiable parental consent, which severely limits behavioral targeting in ads directed at children.
Question 3: Which FTC standard governs whether an advertising claim is considered deceptive?
- The claim must be literally false in every possible interpretation
- The claim is likely to mislead a reasonable consumer acting reasonably (Correct answer)
- The claim must be proven false by a competitor in court
- The claim must intentionally deceive consumers to violate rules
Correct answer: The claim is likely to mislead a reasonable consumer acting reasonably
The FTC's deception standard asks whether a reasonable consumer would likely be misled by the claim, even if the claim is technically true but misleading in context.
Question 4: When a video ad makes a health claim about a product, the FTC requires that claim to be:
- Approved by the FDA before the ad airs
- Substantiated by competent and reliable scientific evidence (Correct answer)
- Reviewed by an independent medical board
- Limited to general wellness statements only
Correct answer: Substantiated by competent and reliable scientific evidence
The FTC's substantiation standard requires advertisers to have competent and reliable scientific evidence before making health or efficacy claims in advertising.
Question 5: Under the CAN-SPAM Act, which element is REQUIRED in commercial video email campaigns?
- A toll-free phone number for customer service
- A clear and conspicuous opt-out mechanism (Correct answer)
- The sender's social media handles
- A statement of the email's commercial purpose in the subject line
Correct answer: A clear and conspicuous opt-out mechanism
CAN-SPAM mandates that every commercial email include a clear and conspicuous mechanism allowing recipients to opt out of future messages.
Question 6: The Digital Advertising Alliance's (DAA) AdChoices program primarily provides consumers with:
- The ability to block all online advertising permanently
- Opt-out options for interest-based advertising across participating companies (Correct answer)
- Legal protection against targeted advertising lawsuits
- Government-certified compliance badges for advertisers
Correct answer: Opt-out options for interest-based advertising across participating companies
AdChoices gives consumers transparency and opt-out choices for interest-based (behavioral) advertising from participating DAA member companies.
Question 7: Which U.S. law primarily governs the placement of political video advertisements on broadcast television?
- The Federal Election Campaign Act and FCC regulations (Correct answer)
- The Bipartisan Campaign Reform Act administered by the FTC
- The Communications Decency Act Section 230
- The Sherman Antitrust Act as applied to media buying
Correct answer: The Federal Election Campaign Act and FCC regulations
Political broadcast advertising is governed by the Federal Election Campaign Act (FECA) and FCC regulations, which require 'lowest unit charge' rates and candidate disclosures.
Video Ads and Commercial Regulatory Frameworks & Compliance 2
Under the FTC's revised endorsement guides, what must a social media influencer do when posting a sponsored video ad?