ADPR 3100 Lecture Notes - Lecture 7: Better Business Bureau, Laundry Detergent, Puffery
10 Jun 2018
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ADPR TEST 3 STUDY GUIDE
Deception vs. Puffery
− Deception
o It is actionable
o First, there must be a representation, omission or practice that is likely to mislead the
consumer
o Second, we examine the practice from the perspective of a consumer acting reasonably
in the circumstances
o Must e ateial – The basic question is whether the act or practice is likely to affect
the consumer's conduct or decision with regard to a product or service
▪ Material = impactful to behaviors, attitudes and beliefs
▪ Bad lais this… so I ight go u it eause of this
o Example: NOKIA AD – Not ualified stateet osee suh as see iages
siulated otie
− Puffery
o It is not actionable
o An advetise’s opiio of a podut that is osideed a legitiate epessio of iased
opinion
o Exaggeration or overstatement
o Expressed is broad, vague language
o Not mis-descriptions or false representations of specific characteristics
Advertising and the Federal Trade Commission
− The Federal Trade Commission (FTC) was created in 1914 to prevent unfair competition and to
monitor and deter false, fraudulent, misleading or deceptive advertising
− FTC (1983) uses a 3-part test to evaluate deceptive or untruthful advertising
1. There must be a representative, omission or practice that is likely to mislead the
consumer
2. The act or practice must be evaluated from the perspective of a reasonable consumer –
different consumers or different situations
3. The representation, omission, or practice must be material – likel to affet osue’s
choice or use of a product or service
− How does the FTC become aware of deceptive practices?
o Consumers, other advertisers, FTC staff, the NAD and CARU
o Begins investigations by collecting substantiation from advertisers
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
It is not actionable: an adve(cid:396)tise(cid:396)"s opi(cid:374)io(cid:374) of a p(cid:396)odu(cid:272)t that is (cid:272)o(cid:374)side(cid:396)ed a legiti(cid:373)ate e(cid:454)p(cid:396)essio(cid:374) of (cid:271)iased opinion, exaggeration or overstatement, expressed is broad, vague language, not mis-descriptions or false representations of specific characteristics. The federal trade commission (ftc) was created in 1914 to prevent unfair competition and to monitor and deter false, fraudulent, misleading or deceptive advertising. How does the ftc become aware of deceptive practices: consumers, other advertisers, ftc staff, the nad and caru, begins investigations by collecting substantiation from advertisers. Adpr test 3 study guide: ex: if laundry detergent a claims it makes shirts whiter, then laundry a may have to provide scientific evidence. Because there is a relative lack of claims: this is (cid:373)ostl(cid:455) asso(cid:272)iati(cid:448)e (cid:373)a(cid:396)keti(cid:374)g sa(cid:373)e as (cid:449)ith ga(cid:373)es/ad(cid:448)e(cid:396)tisi(cid:374)g. Botto(cid:373) li(cid:374)e p(cid:396)odu(cid:272)t pla(cid:272)e(cid:373)e(cid:374)t f(cid:396)e(cid:395)ue(cid:374)tl(cid:455) gets highest le(cid:448)el of f(cid:396)ee spee(cid:272)h p(cid:396)ote(cid:272)tio(cid:374) i(cid:374) the. Consent decree a document that does not admit to deception, yet acknowledges that the advertiser will stop running the sanctioned ad.
