You\'ve been hired as the marketing manager for a company that sells weight loss

Question

You've been hired as the marketing manager for a company that sells weight loss products to the public. The Federal Trade Commission (FTC) recently brought an enforcement action against the company for violating the FTC Act's prohibition of unfair and deceptive trade practices, based on some of the company's advertising. The company wants to challenge the FTC's ruling by appealing to the courts. The FTC's ruling was based on the company's ads for herbal teas (claiming they block absorption of fat and will lead to substantial weight loss) and the company's ad for a popular supplement (claiming they will result in the loss of two pounds or more each week without dieting or exercising).

Questions:

A. What is the basis of the FTC's power to regulate ads for diet products?

B. What standards has the FTC established to determine if a diet product claim is unfair and deceptive?

C. If the company tries to challenge the FTC's ruling by appealing to a court, what test will the appellate court use to determine if the FTC's ruling was justified? How do you think the court should decide this case?

D. If the company wants to comply with the FTC

Explanation / Answer

1) The basis of the FTCs power to regulate ads for diet products was the ad for the supplement that was advertised by the company that says the user of the supplement can reduce the fat without exercising or dieting

2) The standards that FTC established to determine if a product claim is unfair and deceptive is that the users of the product will not lose any weight by using the product and it also misguides the viewer tht they can lose weight without dieting and exercising which means that there is some harmful chemical used in the product that burns the fat

3) Appellete court will send the products for testing what kind of ingredients been used in the product and secondly the court will also test the product practically whether the product is working or not or the advertisement shown by the company is fake

4) The company should eliminate the line in herbal tees is that is absorbs fat and for the supplement product that the user can lose the weight without advertising and exercising

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