History of Advertising Law
This common-law principle meaning “buyer beware” placed responsibility on consumers to examine goods before purchase.
What is Caveat Emptor? (“Buyer Beware”)
What do you call ads that use false or misleading statements to influence purchases?
Deceptive advertising
Which federal agency protects consumers from deceptive or unfair ads?
The FTC
Which company settled a 2014 lawsuit over the slogan “gives you wings”?
Red Bull
What special advertising category involves strict rules because minors are easily influenced?
Advertising to children
This federal agency, founded in 1914, was given authority in 1938 to regulate “unfair or deceptive” advertising.
What is the Federal Trade Commission (FTC)?
Along with spam emails, what unwanted phone-based sales tactic is considered a deceptive practice?
Telemarketing
Which agency regulates broadcasting, including TV, radio, and cable?
The FCC
Which automaker was fined for installing illegal emissions-cheating software?
Volkswagen
What must influencers legally provide when promoting paid content?
Disclosure of sponsorship (#ad, #sponsored)
What Supreme Court case established 1st Amendment protection for commercial speech?
Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council (1970)
What category includes ads that promote discrimination, illegal activities, or illegal products?
Illegal advertising
Along with NAD, which self-regulatory organization monitors ethical advertising?
The BBB (Better Business Bureau)
Which company falsely claimed its Shape-Ups shoes helped users “get in shape”?
Skechers
What do you call it when companies falsely exaggerate environmental benefits?
Greenwashing
Which act banned cigarette advertising on TV and radio starting January 1, 1971?
The Public Health Cigarette Smoking Act
What type of claims are made when companies cannot provide scientific or medical proof?
False or unsubstantiated claims
What type of advertising raises concerns about privacy, tracking, and algorithmic targeting?
Digital or data-driven advertising
Which brain-training program was fined for making deceptive health improvement claims?
Lumosity
What ethical issue is present when ads rely on harmful stereotypes or offensive portrayals?
Cultural insensitivity
Which agency regulates advertising for food and drug products?
The Food and Drug Administration (FDA)
What legal consequence can companies face for violating federal advertising laws?
FTC penalties or enforcement actions
What area of modern advertising involves AI-generated content disclosures, tracking, and bias concerns?
Digital/data privacy regulation
What amendment allowed the FTC to regulate printed tobacco ads after the broadcast ban?
The 1971 amendment to the Public Health Cigarette Smoking Act
What unethical practice involves preying on consumer fears, such as Lumosity’s dementia claims?
Exploitation of vulnerabilities