Question 53 (1 point) Your company sells a \"Navy Seals\' Watch. You advertise t

Question

Question 53 (1 point) Your company sells a "Navy Seals' Watch. You advertise the watch on TV by showing a military operation with men in camouflage clothing landing on a beach. The leader of the operation looks at his watch and says: "0600, perfect timing from a watch I know I can trust: the Navy Seals' Watch." The U.S. military has a division called the Navy Seals that is famous and well respected. Your company has no connection to Navy. A customer buys your watch and complains when he finds out the watch is not waterproof and that no U.S. Navy Seal uses the watch. Is your ad illegal under consumer protection laws? 1) 2) 3) 4) No, because the ad is a dramatization and a Navy Seal could someday use the watch. Yes, because the ad combined with the name misleads a "reasonable" consumer into thinking the U.S. Navy has endorsed the watch and that it's waterproof. No, because a reasonable consumer understands that we live in a "buyer beware" environment where sellers are allowed to make questionable claims. Yes, because in no case can you show military type images in advertising without the authorization of the FTC under the Lanham Act.

Explanation / Answer

3. Yes, because in no case can you show military type images in advertising without…

Under the Lanham Act, it is illegal to use the military type images because those come under the ‘Protection of Government symbols’. Secondly, even under FTC as such, the advertisement is misleading the consumers acting reasonably to wear the watch without getting concerned about the ‘water-proof’ aspect because it could be assumed that if Navy Seals endorses the product, then it has to be waterproof in nature as well. Such claims are hence misleading to the consumers considerably.

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