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Which statement is FALSE about the Federal Trade Commission\'s (FTC) regulation

ID: 337661 • Letter: W

Question

Which statement is FALSE about the Federal Trade Commission's (FTC) regulation of advertising in the United States?

The FTC can sanction a company's advertising if it is either false, that is, a lie, or deceptive, that is, misleading.

The FTC's legal standard for false and deceptive advertising is the same as common law tort of fraud since "a lie is a lie."

An omission of something important in a product advertisement, especially if what is missing relates to health and safety, can render the advertisement deceptive according to the FTC.

"Bait and switch" advertising and marketing practices have been deemed deceptive and thus illegal by the FTC.

a.

The FTC can sanction a company's advertising if it is either false, that is, a lie, or deceptive, that is, misleading.

b.

The FTC's legal standard for false and deceptive advertising is the same as common law tort of fraud since "a lie is a lie."

c.

An omission of something important in a product advertisement, especially if what is missing relates to health and safety, can render the advertisement deceptive according to the FTC.

d.

"Bait and switch" advertising and marketing practices have been deemed deceptive and thus illegal by the FTC.

Explanation / Answer

Which statement is FALSE about the Federal Trade Commission's (FTC) regulation of advertising in the United States?

The FTC can sanction a company's advertising if it is either false, that is, a lie, or deceptive, that is, misleading.

The FTC's legal standard for false and deceptive advertising is the same as common law tort of fraud since "a lie is a lie."

An omission of something important in a product advertisement, especially if what is missing relates to health and safety, can render the advertisement deceptive according to the FTC.

"Bait and switch" advertising and marketing practices have been deemed deceptive and thus illegal by the FTC.

a.

The FTC can sanction a company's advertising if it is either false, that is, a lie, or deceptive, that is, misleading.

b.

The FTC's legal standard for false and deceptive advertising is the same as common law tort of fraud since "a lie is a lie."

c.

An omission of something important in a product advertisement, especially if what is missing relates to health and safety, can render the advertisement deceptive according to the FTC.

d.

"Bait and switch" advertising and marketing practices have been deemed deceptive and thus illegal by the FTC.