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Deceptive Advertising Class Activity

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Q Step 1: Familiarize yourself with the FTC, NAD, and CARU. In addition to information in the textbook, please explore the following links: 1. http://www.ftc.gov/ 2. http://www.asrcreviews.org/ 3. http://www.asrcreviews.org/category/caru/ What kind of penalties does each impose? What are the standards for deceptive advertising and children? Why are they different from advertisements aimed at adults? Step 2: Read the FTC’s policy statement on deception. http://www.ftc.gov/ftc-policy-statement-on-deception Step 3: Be ready to discuss the following. Exaggeration in advertising is not the same as deceptive advertising. How can we tell the difference? What marks the distinction? Step 4: Locate an example of deceptive advertising. Please place a link to your ad or an image of your ad (if print) in your post. Discuss what deceptive advertising practices were used. Who filed the complaint (individual, business, industry group, federal or state regulating agency, etc)? What was the outcome or penalty (if there was one)? Do you agree or disagree with the outcome or penalty? Why?

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Advertising agencies use various tricks to make the ads seem more attractive to the viewers. They use various kinds of deceptive advertising through misleading portrayal of the products which makes people believe in false facts. FTC, NAD and CARU have penalties for such advertisements which do not follow the regulations or the acts. FTC penalties depend on the nature of violation. Cease and desist orders are one of the main forms of penalties along with civil penalties. “Corrective advertising, disclosures and other informational remedies” are other ways through which penalties are served. NAD has consumer protective regulations and violations may lead to fines up to $1 million. CARU has its own sets of regulations for advertisements directed towards children and violation of those regulations may lead to cease or fines up to several million dollars.