Video Ads and Commercial Regulatory Frameworks & Compliance 3

Question 1

The NAD (National Advertising Division) is best described as:

Accepted Answer

An industry self-regulatory body that reviews advertising claims

Answer

The NAD is a self-regulatory organization administered by the BBB National Programs that reviews the accuracy and truthfulness of national advertising claims.

Question 2

Under FCC rules, what is the 'lowest unit charge' requirement for political advertising?

Accepted Answer

Broadcasters must give political candidates the lowest rate charged to any advertiser for the same class of time

Answer

FCC lowest unit charge rules require broadcast stations to sell political candidates time at no more than the lowest rate the station charges its most favored commercial advertisers for the same class and amount of time.

Question 3

A video ad that superimposes text to contradict an exaggerated spoken claim is an example of:

Accepted Answer

Using a disclaimer to cure a potentially misleading claim

Answer

Advertisers often use on-screen disclaimers to clarify or qualify spoken claims, though the FTC requires such disclosures to be clear, conspicuous, and not contradicting the main message.

Question 4

Under the Lanham Act, a competitor can sue another company for false advertising if:

Accepted Answer

The ad contains a false statement of fact that causes commercial harm

Answer

Section 43(a) of the Lanham Act allows competitors to bring civil suits for false or misleading statements of fact in advertising that cause competitive harm.

Question 5

When a video testimonial features a paid actor portraying a real customer, the FTC requires:

Accepted Answer

A disclosure that the person is a paid actor, not an actual customer

Answer

Using actors to portray typical customers without disclosure is deceptive under FTC guidelines; the paid or fictitious nature of the testimonial must be clearly disclosed.

Video Ads and Commercial Practice Test

Video Ads and Commercial Practice Test

Video Ads and Commercial Regulatory Frameworks & Compliance 3